Officials from 18 participants representing 46 World Trade Organization members failed to reach a consensus on the global trade body’s proposed Environmental Goods Agreement Dec. 4 in Geneva, with Taiwan’s representative, Minister of Economic Affairs Lee Chih-kung, stressing the nation’s commitment to continuing the talks next year.
Formally launched July 2014, the EGA negotiations aim to eliminate tariffs on products crucial for environmental protection and climate change mitigation. Comprising economies including Taiwan, Australia, Canada, the EU, Japan, the U.S. and mainland China, the 18 participants account for most of the global trade in such goods.
Lee reiterated during the two-day talks that the Republic of China (Taiwan) government is a staunch proponent of free trade and environmental protection. He voiced disappointment that the 18th round of negotiations had not led to the conclusion of the agreement, but emphasized that Taiwan will continue to actively support multilateral trade deals and looks forward to furthering the discussions in the near future.
The talks were co-chaired by European Commissioner for Trade Cecilia Malmstrom and U.S. Trade Representative Michael Froman. Participants were unable to reach an agreement due to worries among some parties over domestic market impacts and concerns about the environmental credibility of certain proposed goods, according to the Bureau of Foreign Trade under the Ministry of Economic Affairs.
Taiwan is seeking to include bicycle, LED lighting and recycled paper goods in the EGA. It is a major global producer of these products, with the MOEA estimating the combined production output of these sectors at NT$496 billion (US$15.9 billion) in 2014.
The nation became a member of the WTO in 2002 under the name Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu. It was the world’s 17th largest exporter of merchandise in 2015 at US$285 billion, up three places from the previous year, WTO statistics show.
In July 2015, Taiwan signed up to the expansion of the WTO’s Information Technology Agreement. Dubbed ITA II, this accord extends tariff-free status to an additional 201 goods not included in the initial pact, which entered into force in 1997. According to the MOEA, the nation enjoys market advantages in 136 of these products, including semiconductors, GPS devices and printing components. (KWS-E)
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