Taiwan will begin setting up its first free trade zone in 2012 as part of efforts to prepare the country for accession into the Trans-Pacific Partnership in 10 years.
According to sources familiar with the matter, the FTZ will be located inside the planned South Star Free Trade Port in Kaohsiung. The project will begin after the SSFTP completes its environmental impact assessment next May.
To attract foreign investment in the zone, the Ministry of Economic Affairs is mulling regulatory easing that will allow freer flows of capital and talent into Taiwan. These include incentives for business operations, financing and investment.
To facilitate talent recruitment, the MOEA said it does not rule out the possibility of issuing landing visas to foreign professionals and allowing mainland Chinese staffers to work in the zone.
One special feature of the project is that services sectors will be allowed to set up shop in the FTZ. The MOEA has targeted logistics and smart industries as the priorities for development. The ministry is expected to present a preliminary proposal in a Cabinet meeting scheduled for Dec. 15, the sources said.
In addition to the planned FTZ, the country’s six free trade ports in operation are also playing a key role in developing Taiwan into a logistics hub in East Asia. These facilities include Keelung Port, Su-ao Port, Taipei Port, Taoyuan Aerotropolis, Taichung Port and Kaohsiung Port.
The sources said authorities will continue implementing institutional reforms such as streamlined customs clearance to establish Taiwan as a center for international logistics, testing and maintenance, and value addition. (HZW)
Write to Meg Chang at meg.chang@mail.gio.gov.tw