Premier Sean Chen received European Chamber of Commerce Taipei (ECCT) Chairman Chris James today and thanked his organization for promoting closer trade partnership between Taiwan and Europe over the years. He said he hoped to see the ECCT push for an economic cooperation pact between Taiwan and the European Union (EU) to increase mutual prosperity.
The EU is both Taiwan's largest overseas investment source, with a total investment of US$30.2 billion, and its fourth largest trade partner. The two can work together to create a mutually beneficial industry chain linking Taiwan's strengths in technology and manufacturing and the EU's diverse fine industries, the premier said.
The ECCT released its second EU-Taiwan Trade Enhancement Measures report on September 20. The study indicated that due to difficulty in reaching multilateral trade agreements through the World Trade Organization, countries have resorted to bilateral negotiation to remove trade barriers. Meanwhile, the EU's sovereign debt crisis has pushed it to shift its focus to Asian markets. The International Monetary Fund estimates Taiwan will enjoy 4.9% GDP growth per year between 2013 and 2016, outperforming Hong Kong, Singapore and South Korea, the study noted.
The Peterson Institute for International Economics has estimated the signing of the Cross-Straits Economic Cooperation Framework Agreement will spur Taiwan's GDP to grow by 4.4% (US$21 billion) by 2020, while cross-strait trade will increase by US$25-35 billion, the ECCT's report said. Thanks to similarity in culture and languages, Taiwan businessmen have greater ease in tapping into the mainland market, making Taiwan a portal to the mainland for multinational corporations. As such, the premier said he believes European businesses should take advantage of this opportunity and urged the ECCT to support Taiwan and continue promoting Taiwan-EU trade and investment cooperation.
ECCT committee representatives made policy recommendations to the premier on diverse issues, such as:
- High-voltage electrical equipment inspection
- Introduction standards for energy-efficient high-tech vehicles
- Amendments to the Consumer Protection Law
- The opening of cross-strait RMB-denominated commodities
- The provision of fixed-income-securities services by Offshore Banking Units
- Streamlining the pricing approval procedure for new drugs
- Import approval of base station equipment
- Opening up 4G telecommunications
- The premier said he would ask relevant government agencies to consider these recommendations for adoption.
The premier meets with members of the foreign chambers of commerce annually to exchange views about the current circumstances and future development goals of foreign investors in Taiwan. The ECCT will participate in the annual Open Door Mission at the EU headquarters in Brussels this December. While there, the ECCT is expected to provide EU financial officials and think tanks with the latest information about Taiwan's policies as well as its investment and regulatory environment and emphasize the importance of Taiwan in the global arena.
The ECCT publishes position papers annually to present the Taiwanese government its suggestions on trade and investment. With the help of the Council for Economic Planning and Development, it has held many assemblies, roundtable meetings and project meetings with government agencies on various issues since 1997, establishing new communication channels.
Adopting such "outside-in mechanisms" and maintaining direct relationships with foreign chambers of commerce is helping expedite Taiwan's reform into a more business-friendly and globally competitive country, officials said.