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Press release: A
record of strong growth which continued reform can help to maintain
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1. This first Trade Policy Review of the Separate Customs Territory of
Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) has been highly
informative and thought-provoking, thus contributing to a much better
understanding of Chinese Taipei's trade and related policies and the
challenges it faces. I very much appreciate the valuable contribution
of Deputy Minister Ruey-Long Chen and his delegation; also, our
discussion has greatly benefited from insightful comments by our
discussant, Ambassador Bruce Gosper of Australia, and many thoughtful
interventions by Members.
2. Members commended the recent steady growth in Chinese Taipei's
economy. In 2005, real GDP grew by 4.1% and per capita GDP was well
over US$15,000. Members expressed their appreciation of Chinese
Taipei's continued reform, particularly trade liberalization; this is
at the heart of its economic success. Members also recognized that the
multilateral trading system, by keeping markets open, contributes to
the steady growth of Chinese Taipei's economy. With a view to
promoting sustained growth, Members called on Chinese Taipei to
continue to improve the environment for inbound direct investment.
3. Members welcomed Chinese Taipei's active participation in the
multilateral trading system, including its strong support for the Doha
Development Agenda. Members also noted the engagement of Chinese
Taipei in regional and bilateral trade arrangements, which are seen by
Chinese Taipei as complementary to the multilateral trading system.
4. Almost all of Chinese Taipei's trade is on an MFN basis, with a
simple average applied MFN tariff of 7.8% in 2005. All tariff lines
are bound and most applied rates coincide with bound rates, thereby
making the tariff predictable. About 31% of all tariff lines are
duty-free. However, Chinese Taipei's tariff has some tariff peaks
(often concealed by non-ad valorem rates), tariff escalation and
tariff quotas. Members expressed particular concern over relatively
high tariffs in agriculture. Members also noted that a number of
tariff lines were subject to import and export licensing requirements.
Members welcomed the fact that Chinese Taipei seldom resorted to
contingency measures.
5. Members were concerned that inbound cross-strait trade was
prohibited on some 2,200 tariff lines and that little inbound
cross-strait direct investment had been allowed.
6. Members noted Chinese Taipei's commitment to achieving a more
transparent and open government procurement regime: they urged Chinese
Taipei to permit greater external participation in its government
procurement activities. Members called for further harmonization of
Chinese Taipei's standard and SPS arrangements with international
ones. While Members commended Chinese Taipei's significant improvement
in the enforcement of intellectual property rights, some Members
called for greater efforts in this regard.
7. Members encouraged Chinese Taipei to consider further reforms in
agriculture. Chinese Taipei stated that efforts were being made to
modernize and transform the agriculture sector to make it more capital
and technology-intensive. Some Members questioned the effectiveness of
tax incentives, subsidies and tariff quotas applicable to certain
manufacturing industries.
8. Members noted the importance of the services sector to the Chinese
Taipei economy, and encouraged it to further liberalize this sector,
especially financial services and telecommunications. Members were
interested in regulatory developments in services, such as Chinese
Taipei's plan for privatization of state-owned financial institutions,
including postal savings, the new independent telecommunications
regulator, and developments concerning the regulation of cross-strait
transport and movement of natural persons.
9. Members expressed their appreciation of the oral and written
responses to their questions provided by the Chinese Taipei
delegation. They looked forward to receiving any outstanding answers
to questions within a month.
10. This successfully concludes the first Trade Policy Review of the
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu. The
review has been very useful in giving us a far better understanding of
Chinese Taipei's trade policies and practices. As some Members noted,
Chinese Taipei provides an excellent model as a newly-acceded WTO
Member. I hope that Chinese Taipei will continue to play an active
role in the WTO and in the ongoing negotiations, and take to heart the
concerns expressed by Members, particularly with regard to its
policies on agriculture, sanitary and phytosanitary measures,
government procurement, and cross-strait trade and investment. I would
once again like to thank the delegation of Chinese Taipei for its
active engagement in this review, the Discussant for his insightful
comments, and Members for contributing to what has been a very
enlightening two days of discussions. |
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