The Ministry of Economic Affairs yesterday said that it has a positive outlook for a potential investment agreement with the EU, while the Ministry of Foreign Affairs said it hopes negotiations can start as soon as possible.
The ministries’ reactions came one day after the European Commission said that it is considering investment with Taiwan as part of a trade globalization plan.
STRATEGY
In its latest report for future trade and economic strategy, titled Trade for All: Towards a More Responsible Trade and Investment Policy, the commission said that operating in an increasingly integrated regional supply chain, EU investors in East Asia would benefit from a broader network of investment agreements in the region.
“Building on the investment provisions under negotiation with China, the EU will explore launching negotiations on investment with Hong Kong and Taiwan,” it said.
This is the first time the commission has openly expressed its intentions to negotiate with Taiwan on investment.
“Signing a bilateral investment agreement could provide better trade protection for investors from both Taiwan and the EU, and could strengthen trade relationships,” Bureau of Foreign Trade Deputy Director-General David Hsu (徐大衛) told the Taipei Times by telephone.
NEGOTIATION
The EU is the nation’s fifth-largest trading partner, while Taiwan is the bloc’s 19th-largest trading partner, the bureau said in a statement.
Investment Commission statistics showed increasing Taiwanese investments in the EU over the past few years, with investments setting a record high of US$783 million last year, jumping more than five times compared with US$121.02 million in the previous year.
INVESTMENT
The EU invested US$1.38 billion in Taiwan last year, also jumping significantly from US$686 million a year earlier, the data showed.
The bureau said that Taiwan machine tool maker Fair Friend Enterprise Group (友嘉實業) has 18 branches in Europe, while LDC Hotels & Resorts Group (雲朗觀光集團) has opened five hotels and resorts in Italy since 2013.
BILATERAL
European companies, such as Europe’s second-largest clothing retailer Hennes & Mauritz AB (H&M) and German engineering giant Bosch Group, also increased their investments in Taiwan in recent years, the bureau said.
The growing bilateral trade between Taiwan and EU shows that both sides have confidence in the investment environment and the potential investment and economic cooperation agreement could draw trade relations closer, the bureau said.
MUTUAL BENEFITS
Foreign Ministry Department of European Affairs (高安) Director-General Anna Kao told a news briefing that an investment agreement with the EU would create more mutual trade benefits.
EU Commissioner for Trade Cecilia Malmstrom also confirmed at a news conference that the EU is willing to talk with Taiwan about an investment pact, but she would not disclose when the talks might begin.
Additional reporting by CNA
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