Tue, Sep 24, 2002 page4

• AmCham compiles strong record of advocacy on behalf of members

  • AMCHAM
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  AmCham has compiled a strong record of advocacy on behalf of its members. This involves face-to-face meetings with Taiwan and US government officials as well as an impressive array of publications and research. These include:

  * Taiwan White Paper -- This is a bilingual, annual assessment of Taiwan's business environment. It is aimed at promoting the adoption and implementation of policies, legislation, and regulations to improve the business environment and increase Taiwan's international competitiveness. After its publication in May every year, follow-up meetings are held with executive branch officials and legislators to address the priority issues and to seek ways to resolve them.

  * Business Confidence Survey -- This annual survey gauges how AmCham members feel about the state of the business environment in Taiwan. It is also used as an annual benchmark on government and bureaucratic performance.

  * Who's Who in the Legislature -- This complete guide to Taiwan's lawmakers is published every three years after Legislative Yuan elections.

  * TOPICS -- This business magazine is published 10 times a year and is has gained a solid reputation for thorough, unbiased reporting on a broad spectrum of business sector issues.

  Advocacy in action

  Lobby capabilities are measured in large part by the degree of access achieved and the sophistication of the advocacy materials presented. This year's Doorknock illustrated AmCham's strengths in both areas.

  Each year, soon after the publication of its annual Taiwan White Paper, an AmCham Taipei delegation goes to Washington, DC, to "knock on the doors" of US government administration officials, members of Congress, and think tank scholars who focus on US-China-Taiwan affairs.

  Each Doorknock comes after months of careful preparation by the chamber's industry-focused committees and detailed coordination by the Government Relations Committee. As in the previous eight years, this year's Doorknock launched refocused lobbying efforts with the Taiwan government and renewed coordination with AIT - Taiwan and US government officials in Washington.

  Three of the top priorities:

  WTO

  This year's White Paper revealed a sense of urgency about the need for the Taiwan government to put concrete economic reform higher on its agenda, especially since it had finally gained admission to the WTO.

  The delegation found great support for Taiwan's increased international profile as an active member of WTO. There was also high expectation that vigorous participation by Taiwan in the WTO would create significant opportunities for Taiwan to grow its economy, strengthen its trade ties, and increase its international status. Taiwan's quick and effective compliance with WTO accords was seen as an excellent way for it to gain even greater respect in the United States and internationally.

  Taiwan's initial steps at compliance have been viewed as slow and hesitant, and not in the spirit expected. Examples include agriculture, banking, IPR protection, and pharmaceuticals. There is rising concern in Washington that Taiwan's development of the service industry sector is falling behind its regional competitors and that this will hinder its economic strengthening.

  The message was that Taiwan couldn't afford to deal with WTO accords by following a regulatory approach that violates the spirit of WTO. That would be counterproductive for Taiwan's image as an attractive place for foreign direct investment (FDI) and for doing business.

  It could also cause negative political reactions and loss of business sector support in the United States. A sense of urgency therefore exists that Taiwan build a positive record from the beginning stages of its membership.

  In a related vein, the delegation was often asked about AmCham's stance on a US-Taiwan FTA (free trade agreement). AmCham's position seemed to be in tune with that of the US government: an FTA is a very good idea -- but at some time in the future.

  Taiwan first needs to build a solid record of performance in the WTO. Positive performance should help build a much more supportive constituency for an FTA both in Washington and among international businesspeople in Taiwan.

  IPR Environment

  IPR was a hot topic in Washington. Clearly, Taiwan needs to take consistent, year-round steps to aggressively pursue and prosecute violators of intellectual property laws. This is a real issue for domestic and international businesses. Enforcement needs to be strengthened.

  Moreover, a high-quality IPR environment is necessary for Taiwan to become an R&D center and to gain comparative advantage over regional competitors. South Korea, for instance, is seen as making much more rapid progress in IPR protection-to the extent that it could conceivably pull companies away from Taiwan.

  There is concern in Washington (and among AmCham members) that the government and society at large do not fully understand how seriously IPR issues tarnish Taiwan's reputation.

  Infrastructure upgrading

  Infrastructure development and modernization are seen as essential to Taiwan's economic strength. Unfortunately, contract terms and conditions for public works projects are not up to international standards. These shortcomings effectively prevent most foreign energy, construction, environmental, and other industries from bidding on or winning contracts.

  Until this issue is addressed, Taiwan will continue to be deprived of international-standard infrastructure. For instance, dependable, high-quality energy and water are essential for business. Proper standards of sewage treatment, toxic waste disposal, and overall construction have direct impact on public safety and the quality of life. Taiwan is seen as having a second-rate infrastructure, and even that seems to be decaying. Substandard construction, no matter how recent and widespread, will not help in solving Taiwan's infrastructure woes.

  Advocacy with access

  Following this year's Doorknock, an AmCham delegation met with President Chen Shui-bian to brief him on this year's series of 45 meetings. In addition to discussing the three priority areas already mentioned, AmCham concluded its meeting with President Chen by assuring him of the chamber's eagerness to work with the government to help build a strong economy and ensure maintenance of its competitive edge and sustainable growth.

  The delegation also reiterated that AmCham's priority issues were raised with the expectation that they are achievable -- and that AmCham stands ready to support the government's efforts make these urgent, necessary improvements. That commitment was wholly consistent with AmCham's mission and lies at the core of all AmCham's lobbying efforts.
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