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Number Two -- WTO Entry

By Lin Miao-jung
STAFF REPORTER
Sunday, Dec 30, 2001, Page 5

A young activist shows his opposition to WTO entry. PHOTO: CHIANG-YING YING

On Nov. 9 and Nov. 10, China and Taiwan's membership applications to the WTO were approved at the trade body's ministerial meeting in Qatar, with the nations becoming the group's 143rd and 144th members.

The approval marked the end of a 12-year quest for the two nations to become WTO members.

China became a member on Nov. 18 this year, while Taiwan will become a member on Tuesday. The legislature approved Taiwan's accession on Nov. 16.

Under the WTO framework, Taiwan must further open its market to foreign companies and improve its economic ties with China.

With its markets more open, Taiwan's competitiveness will be put to the test.

In order to gain accession, Taiwan has committed itself to major reductions in import tariffs -- 35.6 percent on agricultural products and 31.2 percent on industrial goods.

Most tariff reductions will be made immediately, with the rest to be made by 2004.

In the automobile sector, Taiwan will reduce tariffs by 17.5 percent within nine years of joining.

The anticipated impact of WTO membership for both China and Taiwan is profound, especially for industries that have enjoyed government protection, such as the automobile sector and agriculture industry.

The anticipated export boost after WTO entry will not occur quickly, although import barriers will be lifted immediately -- especially those set up to limit the import of Chinese products.

Of major concern is whether Taiwan can bear the impact of WTO entry, especially at a time of high unemployment.

Some fear that the trade body's rules might increase the nation's growing unemployment rate.

Other concerns have been raised over pollution and foreign cultural invasion.

Taiwan's WTO entry will bring great change, presenting both opportunities and challenges for a country that lives and dies by trade.

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