Products labeled “made in Taiwan” must be genuinely made in Taiwan, Premier Cho Jung-tai (卓榮泰) said yesterday, vowing to enforce strict safeguards against “origin laundering” and initiate anti-dumping investigations to prevent China dumping its products in Taiwan.
Cho made the remarks in a discussion session with representatives from industries in Kaohsiung.
In response to the US government’s recent announcement of “reciprocal” tariffs on its trading partners, President William Lai (賴清德) and Cho last week began a series of consultations with industry leaders nationwide to gather feedback and address concerns.
Photo: Tien Yu-hua, Taipei Times
Taiwanese and US officials held a videoconference on Friday evening to discuss the tariffs, and both sides would continue negotiations based on the principle of mutual benefit, Cho said.
The US is not only concerned with “reciprocal” tariffs and non-tariff barriers, but has also emphasized the issue of “origin laundering,” Cho said.
“Origin laundering” refers to the deceptive practice of misrepresenting a product’s country of origin — often to evade tariffs or trade restrictions.
Photo: Screen grab from the Executive Yuan’s Web site
“Therefore, MIT [made in Taiwan] must be MIT,” Cho said. “Taiwan must uphold the lines of defense and not become a loophole.”
To address the issue, the government would reinforce a three-tiered defense strategy against origin laundering: prevention in advance, tightening inspections and imposing strict penalties for offenders, he said.
Cho said Taiwan must guard against becoming a victim of origin laundering and called on companies to work closely with the government to safeguard the nation’s economic security.
Strengthening compliance and transparency is key to earning greater trust and support from international partners amid the ongoing restructuring of the global trade order, he said.
Cho warned that following the US decision to raise tariffs on Chinese imports to 145 percent, there is a risk that Chinese products could be dumped at low prices into other markets.
To protect the competitiveness of local industries and ensure the safety of consumer goods, the government would launch anti-dumping investigations, he added.
Taiwan is a leader in advanced technology, exporting a wide range of sensitive high-tech products, Cho said.
As export controls play a significant role in global economic security, Taiwan must do its best in export controls to claim its rights in negotiations with the US, he said.
On the issue of non-tariff barriers, Cho said the government and legislature would carefully discuss the issue and conduct a thorough review to determine which barriers could be lifted, while adhering to the principle of “protecting the people’s food safety and trading market order,” he added.
During a separate meeting with edamame producers and traders in Pingtung County yesterday, Cho said the Cabinet has postponed by a week the release of details of a NT$88 billion (US$2.72 billion) support package aimed at mitigating the impact of higher US tariffs on Taiwan’s economy.
Due to uncertainty surrounding the US position, Cho said ministries and agencies need more time to finalize the package’s details, including how subsidies will be allocated across various industries.
Officials in Washington and Taipei began talks via video conferencing on Friday regarding the “reciprocal tariffs.”
The “reciprocal tariffs” announced for Taiwan are set at 32 percent, higher than neighboring economies, including the 24 percent import duties set for Japan, and the 25 percent planned for South Korea.
Additional reporting by CNA
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