The American Chamber of Commerce (AmCham) in Taipei yesterday called on the government to adopt a more effective approach to join the Trans-Pacific Partnership (TPP) by forming a task force to accelerate progress.
The group’s call came after the nation’s efforts to become a candidate for second-round entry have remained in limbo over the past year.
As the 12-member trade bloc is likely to be formed next year, Taiwan needs to take decisive action to establish its credibility for trade liberalization, AmCham said.
Photo: CNA
“We are really worried that Taiwan will be marginalized [economically] as the world is moving forwards,” AmCham chairman Thomas Fann (范炘) told a press conference as the group issued its annual White Paper, adding that the China-South Korea free-trade agreement took effect this week, while the US is in talks with the EU over the Transatlantic Trade and Investment Partnership.
“Participating in a big trade organization will be a good way [to avoid such a risk],” Fann said.
The TPP represents a huge market, as the 12 economies involved produce more than 40 percent of global GDP, he said.
Joining the trade bloc would also help Taiwan reduce its reliance on China and rebalance its trade long term, he added.
In the White Paper, AmCham suggested that the Executive Yuan could create a TPP task force to ensure that the individual ministries and agencies carry out the necessary reforms.
The task force should oversee communications with the public and the legislature to build a sense of national mission behind TPP accession, it said.
Fann said the government should tap a high-ranking government official to lead the task force.
A political heavyweight with national recognition, such as former vice president Vincent Siew (蕭萬長), would be an ideal candidate, he said.
AmCham also warned that no invitations would be issued to join the TPP as some government agencies and private think tanks seem to imagine.
“Would-be candidates must apply,” the business group said in the White Paper.
Of the 12 members of the TPP, Taiwan has signed free-trade agreements with just New Zealand and Singapore, Fann said.
Taiwan needs to accelerate its efforts to become qualified by holding talks with those countries to solve existing, or potential, trade disputes, he said.
“Joining the TPP would make Taiwan a springboard for foreign companies to enter the trade bloc,” Fann said.
In response, the National Development Council said that as the government already has an international trade and economic task force, it would not consider forming another one.
The task force is convened by Vice Premier Simon Chang (張善政) every two to three months.
It requires ministries to report the latest progress on efforts to join the TPP, the council said.
The council said the government would continue deepening structural reforms and improve the business-related legal system in a bid to create a better environment for joining regional economic pacts.
“We hope the American Chamber of Commerce in Taipei continues to voice its support for Taiwan participating in the TPP second-round negotiations,” the council said.
Additional reporting by Lauly Li
WAITING GAME: The US has so far only offered a ‘best rate tariff,’ which officials assume is about 15 percent, the same as Japan, a person familiar with the matter said Taiwan and the US have completed “technical consultations” regarding tariffs and a finalized rate is expected to be released soon, Executive Yuan spokeswoman Michelle Lee (李慧芝) told a news conference yesterday, as a 90-day pause on US President Donald Trump’s “reciprocal” tariffs is set to expire today. The two countries have reached a “certain degree of consensus” on issues such as tariffs, nontariff trade barriers, trade facilitation, supply chain resilience and economic security, Lee said. They also discussed opportunities for cooperation, investment and procurement, she said. A joint statement is still being negotiated and would be released once the US government has made
Authorities have detained three former Taiwan Semiconductor Manufacturing Co (TMSC, 台積電) employees on suspicion of compromising classified technology used in making 2-nanometer chips, the Taiwan High Prosecutors’ Office said yesterday. Prosecutors are holding a former TSMC engineer surnamed Chen (陳) and two recently sacked TSMC engineers, including one person surnamed Wu (吳) in detention with restricted communication, following an investigation launched on July 25, a statement said. The announcement came a day after Nikkei Asia reported on the technology theft in an exclusive story, saying TSMC had fired two workers for contravening data rules on advanced chipmaking technology. Two-nanometer wafers are the most
NEW GEAR: On top of the new Tien Kung IV air defense missiles, the military is expected to place orders for a new combat vehicle next year for delivery in 2028 Mass production of Tien Kung IV (Sky Bow IV) missiles is expected to start next year, with plans to order 122 pods, the Ministry of National Defense’s (MND) latest list of regulated military material showed. The document said that the armed forces would obtain 46 pods of the air defense missiles next year and 76 pods the year after that. The Tien Kung IV is designed to intercept cruise missiles and ballistic missiles to an altitude of 70km, compared with the 60km maximum altitude achieved by the Missile Segment Enhancement variant of PAC-3 systems. A defense source said yesterday that the number of
Taiwanese exports to the US are to be subject to a 20 percent tariff starting on Thursday next week, according to an executive order signed by US President Donald Trump yesterday. The 20 percent levy was the same as the tariffs imposed on Vietnam, Sri Lanka and Bangladesh by Trump. It was higher than the tariffs imposed on Japan, South Korea and the EU (15 percent), as well as those on the Philippines (19 percent). A Taiwan official with knowledge of the matter said it is a "phased" tariff rate, and negotiations would continue. "Once negotiations conclude, Taiwan will obtain a better