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Thank you, Chair. I’d like to welcome the delegation of Chinese Taipei to Geneva for its 5th trade policy review. Let me express my appreciation to the Secretariat and to you, Chair, for the professional work done in preparing for this review. I also want to thank the discussant Ambassador Ricciardi for his assessment.
I would like to start by commending Chinese Taipei for its active participation in the WTO negotiations and discussions, including the DS reform, e-commerce, services domestic regulation and TESSD. We also look forward to Chinese Taipei’s submission of ratification of the Fisheries Subsidies Agreement by MC13.
With Chinese Taipei we have a long-standing trade and investment relationship. We always embrace trade and investment from Chinese Taipei with open arms. During this review period, we remained the largest trading partner of and the biggest source for trade surplus of Chinese Taipei. We continued to be its major investment destination, receiving more than one third of its outbound direct investment. By September 2023, we have received investment of 135,000 companies from Chinese Taipei, accounting for 11.6% of our total number of companies with inbound investment. This reflects the faith of Chinese Taipei investors in our business environment and market prospects. Products produced by these companies, including ICT products, are seamlessly integrated into the global industrial chains through our advanced international logistics channels, bringing tangible benefits to these companies.
Cross-strait bonds go beyond trade and investment. During the pandemic, we mobilized the private sector and civil organizations to donate vaccines, testing reagents and medical devices in urgent need to Chinese Taipei. We were warmed by the same kindness returned to us from companies in Chinese Taipei. This is testimony of the cross-strait relationship bounded by flesh and blood. This September, we issued a new policy to deepen cross-strait integration and development, as a concrete measure to respond to the demands of cross-strait businesses for open and mutually benefiting cooperation.
In its Government Report, Chinese Taipei reaffirms its commitment to “supporting the development of the multilateral trading system under the WTO” and “upholds the principles and norms of the WTO in formulating domestic economic and trade policies”. However, it is regrettable to see that some trade practices and polices adopted by Chinese Taipei completely run counter to the above statement.
On trade, discriminatory trade policies remain, resulting in unfair trade barriers and restrictions. Despite the claim to “enhance market openness by eliminating trade barriers” in the Government report, Chinese Taipei applies “additional import prohibitions to some cross-strait imports”, as stated in the Secretariat Report. These apply to about 2500 tariff lines, including industrial products such as electric vehicles and photovoltaic cells, as well as agricultural products, such as apples and eggs, though these are livelihood products with a strong demand or even a shortage in Chinese Taipei. Such trade practice runs counter to market principles and the basic rules of the WTO such as non-discrimination and general elimination of quantitative restrictions. It also harms the interests of Chinese Taipei and other WTO members.
On investment, targeted protectionism discourages investment. Despite the claim to “foster an efficient and supportive investment environment” in the Government Report, Chinese Taipei requires prior approval for all overseas investors according to the Secretariat Report. Investment prohibitions or restrictions remain in the manufacturing and other fields. In addition, Chinese Taipei has amended specific regulations governing the approval of the investment from our side. While other overseas investment are subject to the negative list, our investment are regulated by a positive list. Doors remain closed to our companies in some manufacturing activities, as well as nearly half of the service sector and public utilities. Projects are subject to a strict ceiling on share ratios even they are on the positive list.
We have raised the above concerns, among others, in the advance written questions and we thank Chinese Taipei’s response. We call upon Chinese Taipei to fully implement its accession commitment, to correct its policy measures that are inconsistent with the WTO rules and principles. We also hope that the two sides will work together to promote cross-strait economic and trade cooperation, which will benefit regional development and global economic recovery.
We will submit follow-up questions after today’s meeting. We hope Chinese Taipei will respond in due course.
Finally, Chair, I wish this review smooth-going and a success.
