The first cab off the rank for the government is the TPP. This state-of-the-art trade pact is an exciting concept that involves more than just tariff reductions. It promises to streamline regulatory structures and set new standards in areas such as the environment, intellectual property, investment, labor rights and government procurement.
More importantly for Taiwan, the arrangement enables the nation to be bolted on to an impressive structure comprising negotiating partners Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the U.S. East Asian neighbor South Korea is also mulling the merits of joining TPP negotiations, adding further weight to the agreement.
But Taiwan needs to come up to scratch in all areas linked to this high-standard free trade agreement before it can be considered for TPP membership. Long aware of this fact, the government is undertaking a program of wide-ranging reforms spanning the country’s legal, public sector and regulatory environments.
On Jan. 3, these efforts shifted up a gear with the establishment by the Ministry of Economic Affairs of a strategic team responsible for fast-tracking Taiwan’s TPP accession. All possible obstacles to Taiwan’s participation in the trade bloc will be assessed by the team and addressed with appropriate response measures.
MOEA data revealed that the 12 TPP members account for 38 percent of the world’s gross domestic product and 35 percent of Taiwan’s foreign trade, while the RCEP’s 16 members, including mainland China, make up 57 percent of Taiwan’s foreign trade. TPP membership, along with the Cross-Straits Economic Cooperation Framework Agreement (ECFA), will ensure 60 percent of Taiwan’s foreign trade enjoys tax free or preferential treatment and boosts the local private sector’s global competitiveness.
The TPP is an effective way of delivering increased commerce, investment flows and growth to the Asia-Pacific region. The agreement also represents a unique chance for the nation to secure a larger slice of the trade action in Asia, where economic growth averages above 7 percent. This will allow Taiwan to significantly increase exports, create homegrown jobs and enhance competitiveness, guaranteeing that the benefits of the TPP are shared by all and sundry.
There is no question that the government’s goal of steering Taiwan toward TPP and RCEP membership is the right one. But sacrifices and hard work lie ahead in informing the private sector and public of the considerable benefits on offer from the agreements. Once consensus has been achieved, there is every reason to view the TPP and RCEP as a valuable part of Taiwan’s push for regional economic integration and greater prosperity in the golden decade.
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