The Ministry of Economic Affairs said that now is the best time for Taiwan to apply to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), after the nation on Wednesday submitted its application to New Zealand, the legal depositary for the 11-member trade bloc.
In a written report to the Legislative Yuan, the ministry said that it is scheduled to brief lawmakers on the impacts of joining the CPTPP on Taiwan’s industries at a meeting of the legislature’s Economics Committee today.
The ministry is also expected to brief lawmakers about the government’s contingency plans for local industries in preparation for a potential accession to the CPTPP, the Central News Agency (CNA) reported yesterday.
Photo: CNA
The ministry’s report states that joining the CPTPP should have several strategic benefits for Taiwan, such as enhancing the nation’s foreign economic and trade links, bolstering the nation’s economic security, enhancing export competitiveness, encouraging foreign investment and facilitating amendments to domestic laws and regulations, CNA reported.
The CPTPP is a high-standard trade deal, and in the process of adjusting Taiwan’s domestic laws and regulations, it could stimulate innovation and research enterprises while further aligning Taiwan’s legal system with international standards, the ministry said.
Taiwan’s application to join the Japan-led trade bloc came after China also applied for membership on Sept. 16, prompting speculation that Taipei was worried that it would be more difficult for Taiwan’s eventual accession if China gained entry first.
The ministry said in the report that Taiwan’s importance in global supply chains is increasing, and being a member of the CPTPP could further consolidate Taiwan’s position in supply chains in the Asia-Pacific region.
Additionally, the 11 CPTPP members have close trade relations with Taiwan, as they together accounted for about 24.3 percent of Taiwan’s trade last year, the ministry said.
Their products accounted for 29 percent of Taiwan’s imports, with 21 percent of exports heading to those countries, while Singapore, Malaysia and Vietnam are among the nation’s top 10 trading partners, the ministry said.
Overall, the ministry said that joining the CPTPP would pose short-term challenges for some domestic-oriented industries such as agriculture, but exclusion from the trade block would have a greater impact on Taiwan’s economy in the long run.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
RSS