Taipei Times: Which sector will be most severely affected by Taiwan's accession to the WTO? What assistance will the government give to affected sectors?
Lin Hsin-yi
PHOTO: CHIANG YING-YING, TAIPEI TIMES.
Agricultural products that will be affected by our WTO entry include rice, where import quotas will be imposed to lower the impact on domestic rice growers. A long-term plan for reducing production of price-protected products such as sugar cane, corn, soy beans, and sorghum will be implemented. Domestic prices for locally produced peanuts, red beans, garlic, shiitake mushrooms and day lilies are high, and they are expected to be impacted after imports are opened up. Fruits such as mango, papaya, lichee and other local specialities will still be competitive. Only tropical fruits are expected to be affected by imports.
The lifting of import restrictions on pork flank and offal will affect pig farmers. Chicken farmers will also experience some impact.
Overall, Taiwan is an exporter of fishery products, and we are still competitive in international markets, but mackerel products will see some impact.
To deal with this impact, we have already obtained the rights to lift import restrictions on 22 sensitive products, such as pork flank, through a tariff quota system, while import quotas will be adopted for rice. Special protective measures can also be used for peanuts and other sensitive agricultural products.
We will also set up a relief fund for agricultural products affected by imports. The government's preliminary goal for funding is NT$100 billion.
TT: What industries will benefit most and will the service sector be a major beneficiary?
Lin: After Taiwan's entry into the WTO, the economic and trade systems will become more open and transparent. In addition, in accordance with the WTO principles of "most favored nation status" and "national treatment," Taiwan can take part in various economic and trade activities with other members on the basis of equality. Within the WTO framework, Taiwan can fairly and reasonably resolve its economic disputes with other nations and protect its domestic industries from unfair competition.
Regarding individual industries, the sectors with stronger international competitiveness -- for example, export-oriented industries such as petrochemicals, plastics, information technology and the communications sectors -- will be able to expand their international markets due to lower tariffs and open markets provided by WTO members.
TT: The ministerial meeting in Qatar will launch a new round of negotiations by next year. What stance will Taiwan take on the various issues?
Lin: Taiwan supports a new round of negotiations. Regarding the agricultural industry, export subsidies should be cut down gradually because they have the effect of distorting trade. In terms of cutting domestic subsidies, price support measures should be gradually reduced.
In the service sector Taiwan is willing to participate in trade negotiations, join hands with other members in opening up the market and share the results of the negotiations. In addition to the issue of liberalization, the negotiations should also focus on how to assist developing members to develop the service trade. The existing regulations related to regional trade agreements should also be clarified.
TT: What impact will Taiwan's and China's WTO entry have on cross-strait economic and trade relations?
Lin: After Taiwan and China enter the WTO, both will be regulated by WTO rules -- which will serve as a shared basis for cross-strait economic and trade interactions. On that shared basis, we hope cross-strait economic and trade exchanges develop in a steady and orderly manner. Such development will have a positive effect on cross-strait relations.
If Taiwan does not apply the WTO exclusionary provisions on China, then both sides will have to make the rights and duties of the WTO framework applicable to each other. Under such circumstances, we must open direct trade with China in accordance with WTO rules. In that case, Taiwan will take the following steps: First, review related trade laws involved in cross-strait relations. Second, propose relief and safeguard measures that can be adopted in response to the drastic increase of imports from China after the two sides enter the WTO. Third, strengthen the ability of Taiwanese businesses to expand sales in China.
WTO entry for both sides is expected to affect, to a good extent, the scale of and dependence upon cross-strait trade. Bilateral trade between Taiwan and China may continue to expand while Taiwan's trade surplus with China may shrink.
In the long run, along with the expansions and investments by foreign businesses in the China market, the purchasing sources available to Taiwanese businessmen in China will increase, while the boost in trade by existing investments will gradually decrease. Next, the growth in Taiwan's dependence on cross-strait trade will slow in the long run. However, Taiwan's dependence on Chinese imports will inevitably increase as we gradually lift the restrictions on such imports.
TT: The WTO provides a good forum, an opportunity for members to resolve trade disputes through arbitration and other mechanisms. Should Taiwan prepare protective measures on specific trade and tariff policies, such as protecting agricultural products, the dumping of iron and steel products and opening up the telecom market?
Lin: Related ministries and commissions are already coordinating various economic and trade measures and initial adjustments in line with Taiwan's WTO entry pledges. On the other hand, if Taiwanese products encounter unfair treatment by other countries after Taiwan's entry into the WTO, we will also consult with those countries and seek a fair, reasonable solution through the Dispute Settlement Body.
Translated by Francis Huang, Perry Svensson,
Eddy Chang and Jackie Lin
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
SHOT IN THE ARM: The new system can be integrated with Avenger and Stinger missiles to bolster regional air defense capabilities, a defense ministry report said Domestically developed Land Sword II (陸射劍二) missiles were successfully launched and hit target drones during a live-fire exercise at the Jiupeng Military Base in Pingtung County yesterday. The missiles, developed by the Chungshan Institute of Science and Technology (CSIST), were originally scheduled to launch on Tuesday last week, after the Tomb Sweeping Day holiday long weekend, but were postponed to yesterday due to weather conditions. Local residents and military enthusiasts gathered outside the base to watch the missile tests, with the first one launching at 9:10am. The Land Sword II system, which is derived from the Sky Sword II (天劍二) series, was turned