The signing of an economic cooperation framework agreement (ECFA) with China is crucial to Taiwan’s ability to compete with other countries on an equal basis, Straits Exchange Foundation (SEF) Chairman Chiang Pin-kung (江丙坤) said yesterday.
In a keynote speech at a national leadership forum held by the Taiwan Hakka Forum Association, Chiang said China, which joined the WTO as a developing country, has restricted the participation of foreign businesses, including those from Taiwan, in many of its sectors.
However, many of the restricted sectors are open to Hong Kong businesses, mainly because Hong Kong has signed a Closer Economic Partnership Agreement with China, Chiang said.
This has resulted in a phenomenon in which many Taiwanese businesses have acquired Hong Kong companies to enter the Chinese market, he said.
Chiang said economic agreements between countries can lead to a trade diversion effect, which is usually unfavorable to those excluded from the pacts.
For example, he said that after South Korea signed a free trade agreement (FTA) with the US, some Taiwanese businesses decided to set up operations in South Korea to obtain tariff-free treatment for their exports to the US.
“This shows that if Taiwan cannot sign similar agreements with other countries, Taiwanese businesses will be deprived of the opportunity to compete fairly in world markets,” Chiang said.
To date, there are more than 400 economic agreements in effect worldwide, he said. These include the economic integration of Europe, which allows for tariff exemptions and the free flow of goods and personnel in the region, he said.
Another example is the imminent economic integration of ASEAN with China, Japan and South Korea, he said.
Under this framework, Japan will grant tariff-free treatment to 90 percent of the goods exported by ASEAN countries and will gradually increase that to 93 percent within 10 years. This will severely undermine the competitiveness of Taiwanese exports, Chiang said.
Although Taiwan has raised the possibility of signing FTAs with Japan, Singapore and the US, there has been no progress on these fronts because of the countries’ concerns about opposition from China, he said.
With 40 percent of Taiwan’s exports being directed to China, signing an ECFA with China has become an urgent issue, he said.
President Ma Ying-jeou (馬英九) has expressed strong support for the establishment of an ECFA with China, saying that it would be similar to an FTA and there would be no political strings attached.
The Ministry of Economic Affairs has fined Taobao NT$1.2 million (US$36,900) for advertisements that exceeded its approved business scope and ordered the Chinese e-commerce platform to make corrections in the first half of this year or its license would be revoked. Lawmakers have called for stricter supervision of Chinese e-commerce platforms and more stringent measures to prevent China from laundering its goods through Taiwan as US President Donald Trump’s administration cracks down on origin laundering. The legislature’s Finance Committee yesterday met to discuss policies to prevent China from dumping goods in Taiwan, inviting government agencies to report on the matter. Democratic Progressive Party
Taiwan and its Pacific ally Tuvalu on Tuesday signed two accords aimed at facilitating bilateral cooperation on labor affairs, according to Taiwan’s Ministry of Foreign Affairs (MOFA). The governments inked two agreements in Taipei, witnessed by Foreign Minister Lin Chia-lung (林佳龍) and visiting Deputy Tuvaluan Prime Minister Panapasi Nelesone, MOFA said in a news release. According to MOFA, the agreements will facilitate cooperation on labor issues and allow the two sides to mutually recognize seafarers’ certificates and related training. Taiwan would also continue to collaborate with Tuvalu across various fields to promote economic prosperity as well as the well-being of their
Taiwan would welcome the return of Honduras as a diplomatic ally if its next president decides to make such a move, Minister of Foreign Affairs Lin Chia-lung (林佳龍) said yesterday. “Of course, we would welcome Honduras if they want to restore diplomatic ties with Taiwan after their elections,” Lin said at a meeting of the legislature’s Foreign Affairs and National Defense Committee, when asked to comment on statements made by two of the three Honduran presidential candidates during the presidential campaign in the Central American country. Taiwan is paying close attention to the region as a whole in the wake of a
NEW WORLD: Taiwan is pursuing innovative approaches to international relations through economics, trade and values-based diplomacy, the foreign minister said Taiwan would implement a “three-chain strategy” that promotes democratic values in response to US tariffs, Minister of Foreign Affairs Lin Chia-lung (林佳龍) said. Taiwan would aim to create a “global democratic value chain,” seek to capitalize on its position within the first island chain and promote a “non-red supply chain,” Lin was quoted as saying in the ministry’s written report to the Legislative Yuan submitted ahead of the legislature’s Foreign Affairs and National Defense Committee meeting slated for today. The Ministry would also uphold a spirit of mutual beneficial collaboration, maintaining close communication and consultations with Washington to show that Taiwan-US cooperation
RSS