Sun, Oct 04, 2009 page3

• AmCham reviews Cabinet’s challenges

  ‘HIGH DEMANDS’ An editorial in last month’s edition of the American Chamber of Commerce’s monthly publication remarked on the new government’s to-do list

  • STAFF WRITER, WITH CNA
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  Managing cross-strait economic relations and strengthening relations with the US are among the challenges facing Taiwan’s new Cabinet, a Taipei-based US trade group said.

  The American Chamber of Commerce (AmCham) in Taipei made the remarks in last month’s issue of its monthly publication, Topics, saying the new government of Premier Wu Den-yih (吳敦義) will face a host of challenges, starting with the need to prove its competence and efficiency in carrying out reconstruction in the areas hard-hit by Typhoon Morakot in early August.

  “The former Cabinet was replaced because it evidently did not meet the high demands and expectations of the Taiwan public. It will now be up to Premier Wu and his ministers to show that they are up to the task,” a Topics editorial said.

  In moving ahead on a proposed economic cooperation framework agreement (ECFA) with China, the government will need to make its case more clearly to the public on why such a pact is so crucial to preserving and protecting Taiwan’s export markets in China and the region, the editorial said.

  It said that other topics high on the new Cabinet’s list include developing Taiwan into a regional financial center, funding the national health care system, shoring up Taiwan’s international economic competitiveness and balancing advances in cross-strait ties while strengthening relations with the US — Taiwan’s most important source of international support.

  While the political environment in Washington makes it unfeasible for the US to negotiate a free-trade agreement with any country, including Taiwan, and discussion of a bilateral investment agreement has been stalled because of procedural complications, Taiwan and the US could explore other mechanisms to further the economic relationship, the editorial said.

  “If that can be done, Taiwan would feel a greater sense of ­confidence and security as it engages China,” it said.

  On the financial aspect, the editorial said that several proposed regulations threaten to undermine Taiwan’s competitiveness in the banking, insurance and assets management industries.

  It said the Executive Yuan, by liaising with the legislature and coordinating between the Financial Supervisory Commission and the Ministry of Finance, is in a position to ensure that Taiwan’s attractiveness in the financial services sector is not eroded.

  The editorial also warned that as long as the financial ­soundness of hospitals in Taiwan rely on ever-larger discounts from pharmaceutical and medical device manufacturers, Taiwanese patients’ access to new and innovative treatments will be restricted and Taiwan will be unable to draw the investment needed to build a flourishing biotech industry.

  In terms of improving Taiwan’s international economic competitiveness, the editorial said this could be accomplished by improving the fairness, transparency and consistency of the regulatory process, and by adhering to international practices rather than trying to devise Taiwan-unique solutions.
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