Concluding remarks by the Chairperson

This third Trade Policy Review of Chinese Taipei has enabled us to improve our understanding of recent developments in its trade and trade-related policies as well as the challenges it now faces. The review has clearly benefited from the constructive engagement of the Chinese Taipei delegation, led by Mr Shih-Chao Cho, Vice Minister of Economic Affairs, as well as from the insightful contribution of our discussant, Ambassador Remigi Winzap of Switzerland and thirty-two interventions by Members. Chinese Taipei's prompt response to the large number of questions was highly appreciated and we look forward to any additional replies no later than one month after this meeting. Members also welcomed Chinese Taipei's adoption of the alternative time-frame for questions and answers, which allowed for a more fruitful discussion at this meeting.

Acknowledging the centrality of trade for Chinese Taipei's economy, Members commended Chinese Taipei on its continued progress towards trade and investment liberalization, further integration into the global economy and economic diversification. Members noted that this policy stance has been successful as evidenced by Chinese Taipei's robust recovery after 2009 and its continued positive export growth in 2013 in the midst of the Eurozone debt crisis.

Members welcomed Chinese Taipei's unilateral liberalization efforts through the setting up of Free Economic Pilot Zones, further reductions of foreign investment limitations and measures to facilitate trade, including implementation of a single window system to accelerate customs clearance. Members encouraged Chinese Taipei to continue its pursuit of trade liberalization as well as economy-wide reforms, notwithstanding the economic challenges that have arisen in the aftermath of the global financial crisis. Members commended Chinese Taipei's efforts in implementing, during the review period, important legal reforms to improve its intellectual property protection, including amendments to legislation on copyright, trademarks, patents, and trade secrets.

Members noted that Chinese Taipei's impressive, albeit rather volatile, economic performance during the review period has been heavily dependent on external demand. In view of the medium term risks represented by external demand volatility, Members commended Chinese Taipei on its efforts to diversify export markets, expand international trade, facilitate inward investment and overcome the heavy reliance on the ICT sector. In this regard, Members also commended the government for identifying certain services sectors as key areas for further development and diversification.

Members clearly valued Chinese Taipei's commitment and constructive engagement both in multilateral and plurilateral trade liberalization initiatives: this includes active participation in the DDA, GPA and trade facilitation negotiations, as well as those on the expansion of the ITA, trade in services agreement and the liberalization of environmental goods.

Members also noted Chinese Taipei's active engagement in bilateral and regional economic integration, signing RTAs with China, New Zealand and Singapore during the review period. Noting that the economy of Chinese Taipei has become increasingly linked with China, through negotiations under the ECFA, several Members wished for further detailed information regarding the current status of the follow-up agreements of the ECFA. Members expressed their appreciation of Chinese Taipei's work and support in the areas of aid for trade and trade related technical assistance.

Notwithstanding the reforms and achievements highlighted by this review, Chinese Taipei faces challenges in a number of areas. The delegation of Chinese Taipei has addressed most of these issues in its final remarks or written replies. I would now like to highlight some areas in which Members consider further improvements could be made:

• Free economic pilot zones:  Some Members noted that Chinese Taipei is experimenting with unilateral trade liberalization by establishing Free Economic Pilot Zones (FEPZs), and encouraged Chinese Taipei to expand the benefits of the FEPZs across the territory.
• Foreign investment regime:  Although inbound foreign investment remains low by regional standards, Members welcomed Chinese Taipei's progressive reduction of limitations on foreign investors under the Negative List for Investment by Foreign Nationals. Members emphasised the need for continued progress by Chinese Taipei in improving the transparency and predictability of the investment review process.
• Tariffs:  As was the case at the time of the previous review, the tariff structure remains rather complex, involving a multiplicity of rates and Members encouraged Chinese Taipei to simplify it so as to help bring more predictability to trade and provide greater transparency for traders.
• TBT and SPS measures: Members urged Chinese Taipei to improve the alignment of its standards and technical requirements with international standards, to simplify certification and testing requirements, and streamline conformity assessment procedures.  Members also asked Chinese Taipei to ensure that it notifies its TBT and SPS measures to the WTO at the draft stage, and that sufficient time is given for other Members to comment and for these comments to be taken into consideration.
• Agriculture:  Members drew attention to the fact that agriculture continues to be a major recipient of government assistance, including domestic support and border protection. Members noted that the tariff schedule has barely changed since the last Review in 2010, and that the average tariff for agriculture is much higher than that for non-agricultural products. Members requested information on fuel subsidies for agriculture and fishing, considering such subsidies as a source of distortion in primary production. Members also noticed that tariff quotas on some agricultural products have remained consistently under-filled, and encouraged Chinese Taipei to review the necessity of maintaining these tariff quota restrictions.  Members also encouraged Chinese Taipei to improve the scientific basis for measures governing trade in agricultural products and the testing and inspection regime at the border.
• Services:  Given the importance of services to the economy, Members encouraged Chinese Taipei to continue opening up its economy, in particular its services sector and remove trade barriers that are still in place through inter alia relaxing market access conditions.

This successfully concludes our third review of Chinese Taipei. The substantial number of advance questions and the many interventions are testimony to the important role Chinese Taipei plays in the WTO. In conclusion, it is clear that Members acknowledge Chinese Taipei for the progress it has made since the last review and I am sure that the current exercise will help Chinese Taipei in further reviewing the direction and substance of its trade and trade-related policies.

Finally, let me thank the Chinese Taipei delegation for their efforts and dedication to this exercise, the discussant for his comments and Members for contributing to what has been an informative and enlightening two days of discussions.