Print

Mail

wiki links

Campaign Special ( Business Community ) - Poll leaves foreigners tongue-tied about result

By Amber Chung
STAFF REPORTER
Sunday, Mar 21, 2004, Page 24

Members of the foreign business community said they had no comment on the outcome of yesterday's presidential election, as the situation remained obscure following the pan-blue camp's effort to annul the vote after being defeated at the polls.

"We are stunned by the whole situation," said Richard Vuylsteke, executive director of American Chamber of Commerce in Taipei.

"We have no comment until the loser concedes."

Taiwan's power comes from the strength of its economy and all parties of the nation should start putting the economy back on the agenda after the event is resolved, Vuylsteke said.

"We hope they have national purpose on a road map used to integrate the economy in a productive way with China," he said.

The European Chamber of Commerce Taipei (ECCT) also had no comment about the election, but ECCT Chief Executive Officer Guy Wittich said that members hope the government would push forward on cross-strait links and also lift bans on imports from China and limitations of personnel and capital coming from the other side of the Taiwan Strait.

Direct links across the strait, he said, are the key for Taiwan to become a regional or even global logistics center.

"If there are no direct links, it is much harder to convince the world to invest in Taiwan," Wittich said.

Vuylsteke agreed, adding that stagnant development in this regard has led to foreign companies here to reconsider their business plans.

unfinished business

In a bid to develop Taiwan as a logistics center, the Legislature passed the Statute Governing the Establishment and Management of Free Trade Ports (自由貿易港區置及管理條例) in July 2003.

The scheme enables foreign imports to be stored or processed without going through customs inspection before being reshipped to third countries or areas, and businesses based there are free from tariffs, several kinds of taxes and port service fees.

The government, however, has yet to provide clear guidelines on tax incentives and custom procedures, Wittich said.

"Developing high-tech industries and a knowledge-based economy, as well as developing R&D centers are the right directions for the government to move toward," Vuylsteke said.

In addition, the nation should strengthen its legal supports on significant issues such as protection of intellectual property rights (IPR) and work permits for foreign talent, he said.

Foreign companies suffering rampant piracy of their products remain disappointed with lax enforcement here.

"The government should get tougher on IPR violators," Vuylsteke said.

Both Wittich and Vuylsteke cited the Government Procurement Agreement, which urges Taiwan to follow through on its promises.

Taiwan has been criticized by the foreign business community for its protectionism and lack of sufficient transparency in the bidding process for major infrastructure projects.

The ECCT also urged the new administration to further deregulate the service sectors, moving towards a more open market.

"We would like to see further liberalization in the service industry, including financial and logistic services," Wittich said.

He said that the move would help lure a wider range of foreign companies to invest in Taiwan.
This story has been viewed 2390 times.