Taiwan has signed investment promotion and protection agreements with the UK and Canada to facilitate local manufacturers’ investments in the countries, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said yesterday.
President William Lai (賴清德) on Tuesday told a trade event that the government has been working to advance investment promotion and protection agreements, as well as double-tax relief pacts to help local industries expand their global deployment.
The UK ranked eighth in trade with Taiwan last year, with a trading volume of US$1.32 trillion, while Canada was 14th with US$1.14 trillion, ministry data showed.
Photo: CNA
Kung said he also met with the Singaporean trade representative in Taipei on Wednesday to discuss renewing the investment promotion and protection agreement between the two sides to upgrade a pact they signed 40 years ago.
The government expects to reach an agreement with Singapore soon, while Indonesia has also expressed willingness to renew its pact with Taiwan, he said.
The main purpose of an investment protection agreement is to provide government-backed safeguards for investors, reducing political risks in host countries — such as foreign-exchange controls, expropriation, nationalization, confiscation, or the effects of war, insurrection or civil unrest, the Department of Investment Promotion Web Site says.
The main elements of the agreement include its scope, investment promotion and protection measures; investment treatment; expropriation, war, rebellion and riot-related damage compensation; terms for repatriation of capital and proceeds; dispute settlement; subrogation; applicability of the agreement; validity period; and termination, the ministry said.
The agreement, which also includes regulatory details, is designed to facilitate and promote closer economic, trade and investment relations between the signatory states, it said.
While the US House of Representatives in January passed the US-Taiwan Expedited Double-Tax Relief Act, the bill is still waiting to be introduce in the US Senate, Kung said.
The government hopes the act can be taken up by the Senate as soon as possible, but its timing depends on its schedule, as lawmakers have many bills to review, he said.
Senators appeared to have no major concerns about the act when he visited the US in May to discuss the issue, he added.
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