The machine tool industry is one of the domestic sectors that would overcome tariff and trade barriers if Taiwan joins the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), President Tsai Ing-wen (蔡英文) said yesterday.
Speaking at the opening of a machine tool trade show in Taipei, Tsai said the industry has a self-sustaining supply chain and is one of the main drivers of the nation’s economic growth.
The sector comprises mainly small and medium-sized enterprises that have a great spirit of innovation and have achieved major breakthroughs, Tsai said at the joint Taipei International Machine Tool Show and the Taiwan International Machine Tool Show.
Photo: CNA
In 2020, the machinery and machine tools industry was part of a national team that was assembled to quickly boost Taiwan’s mask production capacity during a shortage due to the COVID-19 pandemic, she said.
Last year, the output value of Taiwan’s machinery sector climbed to NT$1.3 trillion (US$46.71 billion), and its exports have been growing steadily over the past 17 months, she said, adding that the industry provides more than 300,000 jobs.
Noting that several of the CPTPP’s 11 members buy Taiwan-made machinery and machine tools, Tsai said her administration would do its utmost to seek Taiwan’s admission to the Asia-Pacific trade bloc that represents 495 million consumers and 13.5 percent of the global economy.
The machinery and machine tools industry, as well as other domestic sectors, would benefit from Taiwan’s accession to the bloc, as they are well-positioned to overcome tariff and trade barriers, which boosts their international competitiveness, Tsai said.
Taiwan should be moving in the direction of developing smart manufacturing solutions to cope with geopolitical changes and achieve its goal of becoming a carbon neutral country by 2050, she added.
To that end, Taiwan should assemble a national team that incorporates information and communication technology, smart manufacturing technology, and the machinery industries, Tsai said.
The government would help domestic industries explore new opportunities, she said, pointing to possibilities existing as a result of Vietnam, Malaysia and Indonesia’s aggressive development of the Internet of Things and artificial intelligence applications.
Taiwan Association of Machinery Industry chairman Larry Wei (魏燦文) told the opening ceremony that US$1.2 billion to US$1.7 billion of purchase orders are expected during the six-day event.
The trade show is being held at the Taipei Nangang Exhibition Center’s Hall 1 and 2, where 950 exhibitors rented 5,100 booths, while more than 1,000 international buyers from 62 countries have registered for online procurement sessions.
The physical show ends on Saturday, while the online version is to run through March 21.
The output value of Taiwan’s machine tools is expected to reach NT$108.2 billion this year and the machinery industry is aiming for an annual output of NT$2 trillion in the future, Wei said.
The industry’s output last year reached NT$1.3 trillion, while its exports grew by 27 percent annually to a record US$33.14 billion. Exports of machine tools alone totaled US$2.78 billion, up 29.1 percent from a year earlier, and they are expected to surpass US$3 billion this year.
The nation’s major machinery exports include machine tools, power transmission equipment and key components for machinery equipment, including ball screws and linear guides.
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