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Report to members of the ECCT

This year has seen a dramatic downturn in not only Taiwan's economy but also the global one. Taiwan is experiencing difficult times with high unemployment and a large drop in exports. Many of the island's hi-tech firms have moved offshore, specifically to China's booming market. This shift is placing new demands on Taiwan, forcing a rethink of conventional ideas. This challenge should be embraced with new ideas and not old ones in a new suit.

Taiwan's accession to WTO is a case in point. Entry to the world body will provide a more transparent and level playing field for businesses here, but it will require change to properly manage the new business environment. The political arena will also have to embrace change.

The recent elections, although acrimonious at times, have once again highlighted Taiwan's vibrant democracy and how far the political process has come. Taiwan should be applauded for this, however, the current impasse in the Legislature needs to be resolved quickly in order for Taiwan to tackle the very serious problems the island is facing and move forward.

For the European Chamber of Commerce Taipei, the likely establishment of an EC office in the future will provide European companies here with another strong voice and the Taiwanese government with an organization it can deal with at the political level.

Position Papers

Once again, our industry-specific committees have produced 13 comprehensive Position Papers, which have again been published as the 2001/2002 Position Papers. They have already been distributed to members. The Papers are also available on our website. They will also be widely distributed to local government ministries and officials in Taiwan and Europe.

These Position Papers continue to be the mainstay of our lobbying efforts on behalf of members, in fact, on our recent trip to Brussels they were once again well received and not only highly praised but the European Commission also incorporates our recommendations into their market access talks with Taiwan.

In some cases the Legislature has recognized recommendations and has implemented change. In addition, bilateral discussions were held in August with the CEPD on our Position Papers.

Government relations

Taiwan's democracy continues to grow and mature. The recent Legislative and County Magistrate elections are an indication of this. The presidential election last year saw much of our Government Relations activities consisting of reaffirming the relationship with the various ministries, bureaus and departments of government, a process that has been continued this year and further developed.

This year visits included the Premier's office, MOEA, MOJ, MOF, CEPD and MOFA. In addition, old friends such as the KMT chairman, Lien Chan and DPP chairman, Frank Hsieh were visited and through direct dialogue a variety of business issues were raised.

These officials acknowledging the ECCT's concerns and where possible taking action. This year's round of government visits has been very intensive and we are extremely happy with the results. The government has again indicated its intention to promote a further development of relations with Europe. Premier Chang in his Europe Day Dinner speech reiterated President Chen Shui-bian determination to enhance bilateral relations with Europe.

In addition, a bi-annual golf tournament, the CIECA-ECCT golf tournament, with government representatives, primarily from the MOEA and MOFA, has been continued.

Business issues

This year saw Taiwan's accession to WTO, this fact and China's accession should open the way for improved bilateral trade and a further relaxation of cross-straits tension. In order to follow developments, the Board of Directors has been developing a WTO monitoring document.

To this end, McKinsey & Co has been contracted to develop the project and who will work closely with the Secretariat and the Executive Directors on the project. An interim report has been provided to members and their input on this project is welcomed. This document will allow the ECCT to talk with the government and the European Commission in an informed way on how WTO will affect Taiwan and China.

European Commission

The seventh "Open Door" Mission to Brussels to the EU in Brussels took place on Nov 27 and 28 this year and was very successful. The ECCT delegation comprised of Paul Zeven as delegation leader, and Leslie Lok and Wolfgang Kriesten (Government Procurement), Robin Winkler and Lawrence Tsai (Intellectual Property Rights), Ralf Scheller (Product Certification), Stefan Vrankx (Pharmaceuticals) and Theo Stiftl. Productive discussions were held both with the EU Commission and parliament.

Committees

A key issue for the Board this year has been committee activity. As a result, committee activity has increased and a number of new committees have been established. These committees include Human Resources, Intellectual Property Rights, Product Certification and Food and Dairy.

In addition, certain existing committees have enhanced their function and changed their title to reflect this. These committees include Procurement & Project (formerly Government Procurement), Beverage Alcohol (formerly a sub-committee of the Marketing and Distribution committee), Logistics (formerly the Forwarders subcommittee under the Transportation committee) and the former Finance, Investment and Taxation committee, one of the ECCT's most active committees has split and formed the Finance and Investment committee and the Taxation committee.

The number of committee meetings has increased substantially with not only regular meetings to discuss committee activities but also a program of quality breakfast and lunch seminars. The year 2002 has indeed been an intensive year for committees. The ECCT would like to thank Committee Chairmen for their efforts.

Communications

Euroview has performed satisfactorily through 2001. Efforts to produce quality content continue. The high quality of our flagship publication that has been developed over the years has been maintained and although it has been a difficult year for generating advertising revenue, revenue continues to be satisfactory.

The ECCT is also increasing the use of electronic communications. The introduction of the NewsFlash provides a more timely communication for members and with more and more members utilizing its electronic features. This type of communication will be developed further. The website is increasingly used by a variety of organizations in Taiwan, regionally and in Europe.

The relationship with the local Chinese media continues to improve with a greater coverage of the ECCT's events and activities. This not only serves to communicate with the membership but also to inform the community about our organization.

Events

Our quality program of events continues to improve. In addition to the monthly luncheons and their high calibre speakers, a series of breakfast seminars has proved to be not only popular but also extremely informative for members. This year's Europe Day Dinner in May saw Premier Chang Chun-hsiung attend along with a large contingent of government officials.

The Europe Day Dinner was extremely well attended and resulted in substantial coverage for the ECCT. The speech by the Premier underlined the importance that the ROC attaches to good relationships with Europe.

The Europe Day dinner also allowed our members and invitees to meet with high-ranking officials of the new government in a more relaxed setting. Unfortunately we had to cancel this year's Gala Ball. One of the most anticipated events on the social calendar, the Gala Ball fell victim to the vicissitudes of management where previous arrangements could not be maintained resulting in the Ball being cost inhibitive and cancelled.

However, due to the popularity of the event the Board will forge ahead with alternative plans and is organizing an event for March of next year.

In addition, during 2001 there were three SES dinners, one lunch with the CEPD and two meetings with the Taipei City Government.

Membership & Finance

Membership numbers have decreased this year by more than twenty companies. This is a reflection of an increasingly difficult economic environment with many businesses merging, moving offshore and rationalizing costs. As a result, a concerted membership drive has been initiated and has had some success.

Financially, the ECCT performed less well than expected but it still posted a surplus. The Secretariat continues to perform well.

We look forward to the coming year, as changes in Europe, in particular the introduction of euro coins and notes will herald significant changes there. The ongoing liberalization as a result of Taiwan's WTO accession will create further opportunities in Taiwan for European firms.

The Board of Directors extends their appreciation for the support of the membership in maintaining the ECCT as an increasingly effective organization.

In closing this report, I would like to extend a formal "thank you" to our friend Theo Stiftl, CEO of the ECCT, for more than six years of service to the organization and who recently decided to retire from the ECCT.

Under his management, the Secretariat has made good progress and through working with the different boards over the years has been able to provide the numerous high quality events and activities for ECCT members. He will be leaving us with the knowledge that his efforts have been appreciated and we wish him all the best.
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