"We will reinforce the existing mechanism to help the business sector penetrate overseas markets," Shih said. Measures include assisting local firms in attending international trade shows and bidding for global government contracts.
MOFA has already arranged for domestic companies to participate in 21 trade exhibitions to be held in 19 countries.
The World Trade Organization invited Taiwan late last year to become the 41st signatory of its Government Procurement Agreement. Upon completion of the relevant domestic legislative and WTO procedures, the island will have access to public contracts in the other 40 GPA economies, including the United States, the European Union, Canada and Japan.
These markets are estimated to be worth over US$390 billion per year, equal to about 12 times the combined annual procurement by all of Taiwan's government entities.
GPA membership will provide local firms with more opportunities to compete in the global market. "The government needs to assist competitive sectors, such as the computer and machinery industries, in seeking such business opportunities," Shih explained.
Meanwhile, the official said MOFA would provide subsidies to encourage investments in countries that are Taiwan's diplomatic allies. The ministry is also committed to forging closer economic and trade relations with the five central American diplomatic allies--El Salvador, Guatemala, Honduras, Nicaragua and Panama--that have signed Free Trade Agreements with the Republic of China.
Shih promised MOFA would contribute more efforts to secure business opportunities arising from Taiwan's outbound ally programs for Taiwanese firms. Countries without formal ties with the island will not be left out. The Association of Southeast Asian Nations has already been targeted for further business penetration and international cooperation.
The Taiwan External Trade Development Council (TAITRA) has also geared up its efforts. TAITRA is a non-profit trade promotion organization sponsored by the government, industry associations and several trade institutions. Every year, it organizes on average 25 to 30 sourcing fairs targeting foreign buyers.
The council also leads local firms to attend overseas trade exhibitions to help them conclude deals, said a TAITRA official.
The council will assist the Ministry of Economic Affairs in organizing "Sourcing Taiwan 2009," a program that aims to bring 2,000 local suppliers together with foreign buyers. According to TAITRA, the event is expected to create business opportunities worth NT$120 billion (US$3.52 billion).
The initiative is part of the so-called "New Zheng He Plan" that the government approved last December to boost the island's exports over the next four years. The NT$8.53-billion (US$258.7 million) plan is expected to reverse exports' downward trend by helping local companies attract over NT$540 billion in orders for 2009.
As of Feb. 11, the MOEA and TAITRA had invited 611 foreign buyers from 60 countries to participate in the event to be held in Taipei from March 30 to April 2. Distribution Liverpool--Mexico's largest retailer--and British Telecommunications Group, the United Kingdom's No. 1 operator, have already signed up.
Write to Adela Lin at adela2009@mail.gio.gov.tw