The importance the ROC government attaches to Taiwan’s accession to the Trans-Pacific Partnership and Regional Comprehensive Economic Partnership was underscored this week in Taipei City. A total of 17 ROC representatives and 16 economic counselors to TPP and RCEP negotiating partners took part in a special four-day seminar aimed at focusing promotion efforts in support of the country’s bid to join the trade blocs.
Organized by the Ministries of Economic and Foreign Affairs, the seminar reviewed the government’s TPP and RCEP plans, as well as private sector strategies for thriving in a more liberalized Taiwan business climate. This process ensured the representatives and counselors are on the same page when it comes to hammering home the message that Taiwan is determined to have a seat at the regional integration table. It also reaffirmed the government’s commitment to building Taiwan into a free trade island.
It is no secret that revitalizing Taiwan’s economy is a top policy priority for the government in 2014. By joining the TPP and RCEP, more opportunities will be unlocked for the private sector, with the resultant rise in trade sharpening national competitiveness and increasing the country’s economic clout.
MOEA data revealed that the 12 TPP and 16 RCEP negotiating partners account for 35 percent and 57 percent of Taiwan’s foreign trade, respectively. TPP membership, along with the Cross-Straits Economic Cooperation Framework Agreement (ECFA), will see 60 percent of the country’s exports enjoy tax free or preferential treatment.
The immediate focus for the government is the TPP, a state-of-the-art trade pact that extends beyond 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. Equally important, the arrangement allows Taiwan to be bolted on to an impressive negotiating structure comprising Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the U.S.
But before Taiwan can join the TPP, the country must satisfy stringent requirements in all areas linked to this high-standard free trade agreement. Fully aware of this fact, the government is working hard to reform the nation’s legal, public sector and regulatory environments, ensuring an obstacle-free path toward taking part in the trade grouping. More than 900 laws and regulations have been amended, with a special act governing Free Economic Pilot Zones under review by the Legislature.
Another key step being undertaken by the government is prioritizing passage through the Legislature of the Cross-Strait Agreement on Trade in Services. The follow-up pact under the ECFA is more than just a way for Taiwan businesses to expand market share in mainland China and contribute to the nation’s economic development. It sends a strong message to TPP negotiating partners that Taiwan is an ardent free trader and proponent of open markets.
The TPP and RCEP stand as effective avenues for channeling increased commerce, investment flows and growth to the Asia-Pacific region. They also represent a unique chance for Taiwan to secure a larger slice of the trade action in Asia, where economic growth averages above 7 percent.
There is no question that the goal of membership in the trade blocs is the right one. The government has tailored its economic policymaking to this end, acknowledging that Taiwan cannot afford to be left on the sidelines in an era of liberalization and risk missing the boat on achieving greater national prosperity.
Write to Taiwan Today at ttonline@mofa.gov.tw