the u.s.-taiwan partnership: expanding growth, discovering ... c.taiwan’s challenges d.taiwan’s...
TRANSCRIPT
The U.S.-Taiwan Partnership: Expanding Growth, Discovering Opportunity
John Chen-Chung Deng Minister
Ministry of Economic Affairs February 10, 2015
At CSIS
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Outlines A.Introduction B.Taiwan’s Economic Prospect C.Taiwan’s Challenges D.Taiwan’s Opportunities E.Conclusions
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Introduction
Ministry of Economic Affairs (MOEA) •International Trade: trade negotiations, trade promotion, and enhancing trade relations with trading partners
•Industrial Development: assisting businesses in R&D, developing and maintaining industrial zones, and developing programs to connect between schools and businesses.
•Investment Promotion: attracting foreign investment, and assisting Taiwanese companies to invest abroad.
•Small and Medium Enterprises: assisting SMEs in improving their managerial skills, production capabilities & marketing.
•Energy Policy Formulation, and •Power, Water and Gasoline supply
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Taiwan’s Economic Prospect
Expected 3.22%~ 3.8%
growth (2015)
Thanks to US recovery
and easing monetary
policies in major
economies
The Purchasing
Managers' Indices(PMI)
8.7% growth so far in
2015 also shows mild
recovery.
Expected Export
growth 3.56% (2015)
Boost by smart
devices, 4G related
products
Special attentions
should be paid to a. oil prices
b. softened PRC
growth.
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United States US $62.3 Billion
Japan US $61.6 Billion
Hong Kong US $44.2 Billion
Singapore US $28.9
Billion
Korea US $27.5
Billion
Taiwan’s Challenges
Excellence in manufacturing, but room for improvement in trade in services.
Insufficient added-value created
Not enough R&D injection
Slow branding development
A. Export Oriented Economy
Dependency on Electronics & ICT Industries ; need new
flagship industries
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United States US $62.3 Billion
Japan US $61.6 Billion
Hong Kong US $44.2 Billion
Singapore US $28.9
Billion
Korea US $27.5
Billion
Taiwan’s Challenges
More transparency, coherence and
internationalization in regulatory regime
Limited market and investment instruments
Room for improvement in G2G & G2B
communication
Slow Liberalization Reform
B. Low FDI Stock
Pale performance compared with Asian neighbors
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United States US $62.3 Billion
Japan US $61.6 Billion
Hong Kong US $44.2 Billion
Singapore US $28.9
Billion
Korea US $27.5
Billion
Taiwan’s Challenges
Concentration of Export markets
Export Items are not diversified
C. New Market Needed
Booming Regional Economic Integration
&
FTAs
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Japan US $61.6 Billion
Hong Kong US $44.2 Billion
Singapore US $28.9
Billion
Korea US $27.5
Billion
Taiwan’s Opportunities A. Green Economy and sustainable development
• ICT Integration, nano-technology applications with sustainable development concepts.
• UN Green Economy and procurement, APEC Environmental Goods Initiative, WTO EGA negotiations, and Environment Chapters in FTAs
• Taiwan’s exports in pollution control, energy saving equipment, green materials and carbon capture related equipment are growing.
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Highway Electronic Toll Collection System
Taipei U Bike System
Smart Buses
Based on the strong ICT industry and create Taiwan a new image for smart lifestyle;
Offer solutions which will address the global urbanization problem (Highway Electrical Toll Collection System(ETC), Ubike, Smart buses, etc.);
Become a global leader in contributing to efforts to use smart and digital solutions to address consumer needs, real time services, climate change and environmental deterioration;
Taiwan’s Opportunities
B. Smart and Digital Life Styles
Taiwan’s Opportunities
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Taiwan is a good neighbor in Asia Pacific. Bilateral Economic Framework Agreement with Mainland China signals that Taipei and Beijing know how to manage the relations with each other. Bilateral trade agreements with non-diplomatic allies proved that Taiwan is able to enter meaningful economic relations through FTAs with trading partners without causing political tensions.
Singapore (ASTEP)
New Zealand (AZTEC) Taiwan-Japan BIA also shows that Taiwan is able to expand economic ties by all kinds of instrument.
TPP members
RCEP members
C. Signing ECAs and Joining Mega FTAs
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FTA Coverage
About
77%
FTA Coverage About
10%
Sources:Global Trade Atlas Navigator 2013 Database
Signed: 8 countries (7 FTAs)
In Effect: 8 countries (7 FTAs)
FTA Coverage
About
38% Signed: 50 countries (12 FTAs)
In Effect: 47 countries (9 FTAs)
FTA Coverage
About
18% Signed: 15 countries (13 FTAs)
In Effect: 15 countries (13 FTAs)
Signed: 60 countries (22 FTAs)
In Effect: 32 countries (21 FTAs)
A. For Taiwan, trade liberalization is not an option, but an imperative.
Conclusion
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B. The international community should accept Taiwan as a member, and US’s open, strong and clear support is crucial.
IV. Conclusion
19th largest economy
in the world
TPP and
RCEP
The high quality
ANZETC and ASTEP
3rd Best investment
environment in the world
Protection of IPR
19th largest economy in the world, and
Taiwan’s trade with other Asia-Pacific
countries has doubled in the past
decade with an extensive, closely-knit
network in supply chains.
According to Business
Environment Risk
Intelligence, 2013
have proved that
Taiwan is qualified to
join any high-standard
RTA.
In preparation to join the
TPP and RCEP, Taiwan
is accelerating its
unilateral liberalization
efforts.
Impressive legislative
strides for the
protection of IPR.
Recent amendments to
2014 Trade Secret Law
could bring Taiwan into
conformity with
international standards.
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United States Japan EU Hong Kong MainlandChina
2014 Taiwan’s export growth to key trading partners
%
C. Taiwan-U.S. Trade Relations still Going Strong
Conclusion
The US replaced Japan as Taiwan’s 2nd largest trading partner in 2014
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USA 47%
UNITED KINGDOM
11%
AUSTRALIA 8%
JAPAN 10%
CANADA 6%
FRANCE 3%
GERMANY 2%
NEW ZEALAND 2% OTHERS
11%
Taiwan Overseas Student Destination in 2013
Conclusion
Key activities to enhance bilateral economic and trade relations with the USA
Source: Ministry of Education, ROC(Taiwan)
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Conclusion
Key activities to enhance bilateral economic and trade relations with the USA
JAPAN, 11%
HK, 8%
THAILAND, 6%
PHILLIPINES, 4%
SINGAPORE, 8%
AUSTRALIA, 3%SPAIN, 3%
FRANCE, 13%
UK, 6%NETHERLANDS, 3%
SWISS, 6%SWEDEN, 1%
GERMANY, 4%
CANADA, 4%
USA, 21%
Foreign Banks Branch Number Ranking in Taiwan in 2014
Source: Financial Supervisory Commission , ROC(Taiwan)
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• The 2014 TIFA meeting was productive in 6 key areas: investment, IPR, pharmaceuticals and medical devices, TBT, agriculture, and multilateral and regional cooperation.
Continue the Trade and Investment Framework Agreement (TIFA) talks
• 52 Senators and 114 House of Representatives have expressed their support for Taiwan’s participation in the TPP.
• Taiwan’s decent annual import of nearly USD$ 300 billion is up for grab.
Seeking U.S. support to join TPP
Conclusion
Key activities to enhance bilateral economic and trade relations with the USA
Thank you