In an interview with Executive Yuan Spokesperson Sun Lih-chyun broadcast live on the Executive Yuan's "Open Mic" YouTube channel today, Minister of Economic Affairs Deng Chen-chung emphasized the government's efforts to expedite Taiwan's entry into the Trans-Pacific Partnership (TPP) and Regional Comprehensive Economic Partnership (RCEP).
"Our nation will absolutely not give up on any markets," Deng affirmed.
The minister explained Taiwan's regional economic integration and deployment in the face of the global trends of liberalization and market opening. Regional integration is the main trend of market liberalization worldwide, he said.
The participants in TPP and RCEP negotiations are major trade partners of Taiwan that are tightly connected to its industrial supply and value chains, Deng pointed out. Asked by viewers about the benefits of joining these organizations, he noted that the TPP is led by the United States, and the 12 nations negotiating on it also include Japan, Canada, Australia, New Zealand and Singapore. TPP members account for 35 percent of world trade, so they comprise a major market. After relevant negotiations are completed, trade in goods between members will become tariff-free, and the nations' service industries will be more open than ever before. Trade and quarantine norms will also converge.
When asked about the United States' stance on Taiwan joining the TPP, Minister Deng replied that it will depend on whether Taiwan can comprehensively liberalize its economic policies and measures.
The TPP and RCEP are similar in importance for Taiwan, said Deng. The RCEP's chief members are mainland China and the Association of Southeast Asian Nations. Like the TPP, the RCEP aims at eliminating tariffs and opening up services industries.
As for viewers' concerns about market opening, Minister Deng said that if the world-class computers, semiconductor products and panel displays manufactured by Taiwan can be sold in more markets in other countries, the nation will enjoy greater potential for growth. Meanwhile, the government will shoulder the responsibility to help the few industries disadvantaged by market opening to transform and become more competitive.
Online viewers also questioned whether the Cross-Straits Economic Cooperation Framework Agreement signed in 2010 is to blame for six consecutive months of export decline as well as a gloomy 2015 gross domestic product (GDP) growth forecast of less than 1 percent. Deng explained that the government had foreseen the long periods of time required for trade negotiation, and hence it arranged an early harvest list for Taiwan to proceed with products that enjoy a competitive edge and high demand in mainland China, such as machine tools, petrochemicals and groupers. The early harvest list accounts for over 10 percent of all items negotiated, and five years into implementing this list, exports of these items to mainland China have all grown considerably.
Other viewers attributed GDP downward revision and declining exports to impediments to joining regional economic integration. The minister said Taiwan's recent economic setback is primarily due to slowing demand in mainland China and Southeast Asia; Taiwan has traditionally exported large quantities of specific products to these markets. Hence, to help create more favorable conditions for economic growth, the government will review export policies and put a stronger emphasis on research and development, customizing products to clients' needs, lowering quantity and raising quality, and increasing products' added value.
The live webcast, which took place from 7 to 8 p.m., is available for viewing online on the Executive Yuan's Chinese-language YouTube channel at http://goo.gl/iL1Ilu.