Timing is essential to protecting Taiwan's competitiveness, Premier Jiang Yi-huah said today about the cross-strait trade in services agreement, which is still awaiting approval from the Legislature. Before its ratification, domestic industries will continue to lose out on valuable opportunities while the nation's competitiveness suffers. If people focus only on the negative effects, they will lose sight of the agreement's far greater benefits, he added.
While visiting the product testing laboratories of Sporton International in Taoyuan County, the premier said Taiwan's chief exports such as electronic products and information and communications devices all require testing and certification. Hence, product certification is intrinsically related to manufacturing, and it is important to strengthen the former industry in order to support the latter. The same principle applies to other industries that are closely linked.
Jiang said Sporton has been expanding its presence in overseas markets long before the cross-strait services pact was signed. Because domestic demand is limited, the government has been pursuing free trade agreements with mainland China and other countries to allow Taiwan's goods and services to access more markets with more competitive prices.
The product certification industry in mainland China has grown rapidly to roughly US$16.56 billion in 2013, Jiang pointed out. While Taiwan offers mature testing and certification technologies, it is in a tight race with other countries to gain a foothold in that market. Giving Sporton and others from Taiwan a six to 12-month head start would make all the difference in terms of business advantages.
With Taiwan losing its edge with time, the premier underlined the urgency of approving the services pact as it will help transform industries and boost exports. Delaying ratification will only hurt Taiwan's competitiveness.
The agreement has received mixed reactions since it was signed this past June, Jiang continued. Vulnerable industries such as herbal medicine wholesalers and retailers, beauty and hair businesses, laundry services, and printing and publishing companies have all expressed concerns about the impacts of increased competition. The government has therefore devoted considerable effort to helping them understand the agreement and reassuring them that the impacts will not be as great as feared. Government assistance mechanisms will also be in place to help them adapt and upgrade their business models.
Premier Jiang said the government could not have signed an agreement that brings only harm and no benefits. The main purpose of the pact is to give Taiwan's service industries more advantages to tap the mainland market.
As another example, Jiang said, the pact will benefit Taiwan's electronic gaming by slashing their application review time from six months to less than half that time. The product testing and certification industry will also benefit similarly. Presently many Taiwanese companies are being held back from their full potential by mainland regulations, but with the services pact in effect, these companies can put all their strengths into play. The premier once again urged the public not to overlook the agreement's benefits, which far outweigh its disadvantages.