john chen-chung deng - 經濟部國際貿易局經貿資訊網 moea 14 trade policy measures 1....
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From A Welcome Change of Course to Time for Reflection
John Chen-Chung Deng Minister
Ministry of Economic Affairs
January 22, 2015 1
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Contents
1.Global Trade Challenges and Opportunities
A. Challenges
B. Opportunities
2.Taiwan’s Strategy
A. Trade Policy Measures
B. Trade Promotion Measures
C. Industry Policy Measures
3.Conclusion
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Global Trade
Challenges and Opportunities
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Challenges Challenge 1: The Slowdown of Global Trade Growth
- mainly caused by Changes in Vertical Specialization
Source: World Bank, GLOBAL ECONOMIC PROSPECTS , JANUARY 2015
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Challenge 2: The Industry Value Chain Interruption Crisis
and the Need to Improve Industry Capacity
⊙Taiwanese companies have always served as a foundry for
European and American brands in the global ICT supply
chain.
⊙After Mainland China and Taiwan entered the WTO in 2001
and 2002, respectively, cross-strait economic policies began
to become more liberalized.
⊙ In recent years, as the effect of export generated by
Taiwanese investment in Mainland China has gradually
weakened, China’s local ICT industry has grown significantly.
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Challenge 3:Climate Change and Green Economy
⊙Environmental trade has already become an international
trend.
⊙Disputes over issues related to environmental trade have
become more frequent in the WTO.
⊙ These disputes have already had an obvious impact on
several countries, and could also become a major obstacle
for Taiwan’s trade in the future.
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Challenge 4: Burgeoning Regional Economic Integration
and Taiwan’s Marginalization Crisis
⊙The prevalent in regional Integration
– if our pace in terms of contributing to regional Integration
doesn’t speed up, we will face a serious marginalization
disaster.
⊙ It is necessary for us to try hard to catch up
and accelerate our pace in contributing to regional
economic integration in order to keep our international
competitiveness up and allow our economy to grow in a
sustainable fashion.
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Opportunities Opportunity 1: The U.S. has become Taiwan’s 2nd Largest
Trading Partner
In 2014, the US replaced Japan as Taiwan’s 2nd largest trading partner
Rank Country Total Trade Exports Imports Percent of Total Trade
--- Total, All Countries 588.0 313.8 274.2 100.0
1 Mainland China & HK 174.4 124.7 49.7 29.7
Direct trade with Mainland China 130.2 82.1 48.0 22.1
2 UNITED STATES 62.3 34.9 27.4 10.6
3 JAPAN 61.6 19.9 41.7 10.5
4 SINGAPORE 28.9 20.6 8.4 4.9
5 KOREA,REPUBLIC OF 27.5 12.7 14.8 4.7
Note: Ranked by total trade.
Source: Taiwan Customs Administration
Unit: US$ billion;%
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Opportunity 2: The Rapid Economic Development of Emerging
Markets
⊙Rapidly growing emerging markets, a burgeoning middle
class, high demand in infrastructure, and higher consumer
spending.
⊙First, demand in building infrastructure entails promoting
transport infrastructure, improving the medical education
system and developing the manufacturing industry.
⊙Second, in terms of greater consumer spending, rapid
growth in the economy and population generates higher
income and consumption, which further leads to mounting
domestic demand.
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Opportunity 3: The strategy to Divide our Export Market
is Gradually Taking Effect
⊙Our exports to the U.S. in 2014 increased by 7.1%, to
Japan by 3.6%, and to Europe by 3.5%. These figures
show better results than the export growth of 0.4% to
Mainland China (excluding Hong Kong).
⊙Our export share to Mainland China in 2014 was 26.2%,
and declined 0.6% from the 26.8% in 2013.
⊙We can see that our exports to developed countries
have grown, while for Mainland China, export
dependence declined.
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Opportunity 4: Climate Change and Green Opportunity
⊙ On Nov. 12th, 2014, the U.S. and Mainland China delivered the
“U.S.-China Joint Announcement on Climate Change”, which
enabled the Green Development model to become an
international economic focus of the future.
⊙Given the fact that the U.S. and Mainland China are both our
main export destinations for environmental goods and services,
their new green economic policy will result in new demand for
green products and services.
⊙If the plan can be realized, it would be good news for Taiwan.
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Opportunity 5: Smart City
⊙Smart City presents a new possibility for Taiwan’s ICT Industry,
because our ICT businesses are equipped to find new niches in
the international market with existing capacity and resources.
⊙Government’s vision to industrialize the Smart Life concept
1.In the Domestic Market:
A. Become an innovative industry in Taiwan.
B. Be a new niche for the ICT industry.
C. Improve citizens’ quality of life.
D. Safeguard Taiwan’s sustainable development.
2.In the International Market:
A. Create a new brand for Taiwan in the global market. B. Offer a solution to the global urbanization problem. C. Contribute to global efforts in addressing climate change and
environmental deterioration.
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Taiwan’s Strategy
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Trade Policy Measures 1. Actively Participate in RTA
⊙Taiwan signed only four FTAs with our allies in Central
America between 2000 and 2008.
⊙Aside from signing ECFA and 18 other cross-strait
agreements, Taiwan has also successfully signed
economic cooperation agreements with New Zealand
and Singapore, respectively.
⊙A key element of our international trade policy right now
is to enter the TPP and RCEP negotiations.
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2. Enhance Economic and Trade Relation with the U.S.
⊙ The TIFA meetings remain the most important
platform for dialogue and discussion between Taiwan
and the U.S. on bilateral trade and economic issues.
⊙We will take advantage of TIFA framework to deal
with issues of mutual concern to demonstrate our
commitment to liberalization. With all the efforts we
have made, we would like to see the U.S. render its
support when Taiwan makes an official request to join
the TPP.
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Trade Promotion Measures
⊙Goods Export Transformation Action Plan.
⊙11 key markets for trade promotion: Mainland China, India,
Indonesia, Vietnam, the United Arab Emirates, Egypt, Brazil,
Mexico, Turkey, the United States, and Germany.
⊙Strengthening the North America Region Economic and
Trade Cooperation Plan.
Advanced
Economies
Mainland
China
Emerging
Markets
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Industry Policy Measures - Overall Industrial Policy
⊙ In the face of challenges brought about by liberalization and
globalization, enterprises need to actively adjust their
makeup to respond to increased international competition.
⊙ The government has, taking into consideration Taiwan
industry’s current situation, formulated the draft“ Industry
Upgrading and Transformation Action Plan.
⊙ In addition, the Executive Yuan has mapped out a “traditional
industry renewal plan” aimed at accelerating the upgrading
of traditional sectors through various methods, including
innovation, cross-disciplinary integration, new market access,
integration of new elements, and so on.
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Conclusion
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