Following the signing of an economic cooperation pact between Taiwan and New Zealand, Premier Jiang Yi-huah today convened the International Economic and Trade Strategic Task Force (IETSTF). The team passed a liberalization plan for attaining economic cooperation agreements (ECAs) and reviewed deficiencies in the ROC's prevailing liberalization regime.
The premier stated that while the Agreement Between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Cooperation (ANZTEC) has given a shot in the arm to Taiwan's trade negotiations with other countries, Taiwan still needs strategic thinking and programs to expedite its signing of free trade agreements (FTAs) with nations around the world.
He further demanded that all ministries complete economic and trade liberalization tasks for industries that are under their respective jurisdiction by the end of this year so the nation can seize opportunities to join regional economic organizations as soon as they arise.
The IETSTF is a Yuan-level cross-ministerial platform focused on promoting trade with other countries. Once convened by the vice premier, since the end of 2012 the taskforce has been presided by the premier and oriented toward the goal of accession to the Trans-Pacific Partnership by 2020.
Jiang acknowledged the taskforce's contribution to the ANZTEC and directed ministries to follow up on this and the ECA liberalization plan the IETSTF passed today by comprehensively reviewing deficiencies in the ROC's current economic and trade mechanisms, market openness, and liberalization and globalization for the purposes of regional economic integration as well as relevant impact assessments and response plans. Agencies should incorporate assessments on industry, labor and overall development and also actively promote relevant examinations and preparatory tasks, he added.
The Ministry of Economic Affairs (MOEA), which originally convened the IETSTF, had delineated three-stage reviews of economic liberalizations by nine ministries—the Council of Agriculture, Financial Supervisory Commission, Ministry of Justice, Department of Health, Public Construction Commission, Ministry of Transportation and Communications, Ministry of the Interior, National Communications Commission and the MOEA itself. These plans were estimated to require at least a year and a half to complete.
However, the premier emphasized that Taiwan's economic liberalization must speed up and entail a greater degree of deregulation. Therefore, he instructed the ministries to complete their liberalization tasks by the end of this year and submit their progress in two stages: the first during the taskforce's next meeting at the end of September and the second by the end of December.
Since the TPP has high standards and strict specifications for entry, the Executive Yuan will enjoin agencies to make concrete plans and accelerate preparation work to carry out the ECA liberalization plan. Such tasks include supporting domestic industry and labor while responding to their concerns as well as drumming up support for Taiwan abroad by strengthening communication and advocacy.
According to the MOEA, 31.94 percent of Taiwan's exports in 2012 were to the 12 countries in the TPP. Its exports of industrial products to these nations totaled US$93.61 billion, 31.70 percent of total industrial exports. Tariffs were levied on 31.27 percent of these goods, and the taxes on 12.16 percent of goods were at least 5 percent of their value. The damage caused by not participating in the TPP is clear, the ministry says, and continued failure to join the agreement would deal a heavy blow to the nation's economic development and competitiveness.
Taiwan has already completed substantive negotiations with Singapore for an FTA, and further good news on this front is expected in the near future, Jiang said. The government will continue to push for the signing of FTAs and ECAs and the country's participation in regional economic integration in order to boost growth and allow all citizens to benefit from economic liberalization, he concluded.