CIECA News Letter No. 13 / June, 2013 Index Headline News ……………………………………………….. P.01 Taiwan signs economic cooperation pact with New Zealand Special Report ……………………………………………….. P.03 Taiwan, China sign service trade pact Economics minister tries to allay fears over service trade pact MOEA stands by service trade pact with mainland Joint Meeings, Seminar and Trade & Investment Mission … P.07 The 15th Joint Meeting of the Taiwan Britain Business Council The 20th Netherlands – Taiwan Joint Business Council Meeting Guests From Abroad ………………………………………….. P.11 Mr. C.Y. Wang, Chairman of CIECA, hosted a luncheon for Mr. Ross Maddock, Chairman of Australia-Taiwan Business Council Ltd. (ATBC) Mr. Leon Lee, Secretary General of CIECA, hosted a working luncheon for Mr. Ahmad Syafri, Representative of Indonesian Economic and Trade Office to Taipei Economic News ……………………………………………….. P.12 Activity News ……………………………………………… .. P.25 An Outline of Republic of China’s Economics ……………….. P.27 Headline News Wellington by Taipei Economic Taiwan signs economic cooperation and Cultural Office Representative pact with New Zealand Elliot Charng and New Zealand Taipei, July 10 (CNA) Taiwan Commerce and Industry Office in signed an economic cooperation Taipei Director Stephen Payton, is agreement (ECA) with New considered to be of great Zealand Wednesday, a pact it sees importance to trade-oriented as a starting point for its Taiwan's long-term economic participation in regional economic development. integration. It is the first free trade deal that Taiwan has ever signed with a The agreement, signed in 1/28 country with which it does not percent after the agreement is fully maintain diplomatic relations. implemented. Taiwan signed an Economic After the pact is signed, Cooperation Framework Taiwan is expected to see its Agreement (ECFA) with China in exports rise by US$144 million 2010, but that was a broader and imports increase by US$139 framework deal seen as a million, according to a CIER precursor to a comprehensive free report. trade pact in the future. Taiwan's manufacturing sector The pact is named the is expected to benefit significantly Agreement between New Zealand from trade with New Zealand and the Separate Customs following the signing of the pact. Territory of Taiwan, Penghu and The petrochemical industry Matsu on Economic Cooperation and related chemical, plastic and (ANZTEC). rubber sectors, along with the electronics industry are expected The Separate Customs to be the biggest winners. Territory of Taiwan, Penghu, Kinmen and Matsu is the name The agreement is aimed at under which the nation was cutting tariffs by 1-5 percent on admitted to the WTO in 2002. industrial and agricultural products the two countries import from The Chung-Hua Institution for each other, an official familiar Economic Research (CIER) with the matter said. estimates that Taiwan is expected to see its GDP increase 0.008 In 2012, Taiwan's exports to percent as a result of initial tariff New Zealand amounted to reductions under the ANZTEC, a US$524 million and its imports figure that could rise to 0.394 from the country totaled US$690 2/28 million. Taiwan is New Zealand's The substantive negotiations 12th-largest export market and on the agreement concluded in 15th-largest source of imports. May. The pact still has to be reviewed by the Legislature. New Zealand was Taiwan's (2013/07/10 Central News eighth-largest source of Agency) agricultural imports in 2012, and Taiwan ran a US$600 million Special Report agricultural trade deficit with the Taiwan, China sign service trade pact country last year. Taiwan and China signed a service trade pact Friday in The agreement is expected to Shanghai to open the service lower the cost of agricultural sectors on both sides, a move products from New Zealand that designed to deepen ties across the are popular in Taiwan, according Taiwan Strait. to the Council of Agriculture. The pact was signed in New Zealand is Taiwan's Shanghai by Lin Join-sane, 43rd-largest agricultural export chairman of Taiwan's Straits market. Taiwan mainly exports Exchange Foundation (SEF), and cakes, vegetable oil and vegetables Chen Deming, president of the to the country. Beijing-based Association for Relations Across the Taiwan Taiwan has previously signed Straits (ARATS). bilateral free trade agreements (FTAs) with five of its diplomatic The SEF and ARATS are allies in Central America that quasi-official organizations accounted for less than 1 percent responsible for cross-strait of Taiwan's overall external trade relations in the absence of official in 2012. ties. 3/28 The move is expected to He said 398 Chinese strengthen the Economic investment projects were approved Cooperation Framework between June 2009, when Taiwan Agreement (ECFA) signed first opened its doors to between the two sides in 2010. investment from China, and the end of May, but only 216 Chinese Taiwan is also expected to executives or technicians had sign a goods trade pact and a come to work in Taiwan on those dispute settlement agreement with projects. China in future talks. (2013/06/21 Central News Agency) As of the end of 2012, Chinese investors in Taiwan had Economics minister tries to allay hired 6,771 local workers, he fears over service trade pact added. Economics Minister Chang Chia-juch attempted to dispel fears Under the cross-strait service Tuesday that a service trade pact trade deal signed in Shanghai on signed with China will allow June 21, China has agreed to open Chinese workers into Taiwan and 80 service categories to Taiwanese hurt the job prospects of local investors, compared with 64 workers. categories being opened by Taiwan to Chinese investment. Chang said that during past rounds of openings to China The agreement has been investment in Taiwan, harshly criticized by the Chinese-invested projects opposition Democratic Progressive generally hired Taiwanese workers Party (DPP) for the lack of with the exception of a few transparency of the negotiations, executive positions, citing and DPP spokesman Lin government figures. Chun-hsien said it would fight the deal in the Legislature and on the 4/28 streets. government's handling of the service pact negotiations and its Lin said the Economic keeping lawmakers in the dark Cooperation Framework during the process, the Legislature Agreement (ECFA) signed has pushed for a role in approving between Taiwan and China in the agreement. 2010 had not only not upgraded Taiwan's economy but actually It reached a consensus locked Taiwan into China. Tuesday that it would review the pact line by line and that the The service trade pact, as a agreement would not be legally follow-up agreement to the ECFA, binding until it passed the would be just as bad, Lin said, lawmaking body. because it would make any future increases in wages impossible. Legislative Speaker Wang Jin-pyng said Tuesday the But Lin warned that the ECFA Mainland Affairs Council -- follow-up pact on trade in goods Taiwan's main China policy that government hopes to complete planning agency -- will brief the by the end of the year would even Legislature on the service trade be more dangerous to Taiwan's pact Wednesday. (2013/06/25 economy. Central News Agency) The DPP also opened a MOEA stands by service trade pact with mainland complaint hot line (02-2321-5236) to let affected manufacturers and TAIPEI -- The Ministry of other sectors voice their Economic Affairs (MOEA) said grievances, adding that the party yesterday that the newly signed would help convey their views. service trade agreement between Taiwan and China will not open Unhappy with the Taiwan's doors to Chinese workers, 5/28 despite claims to the contrary by The lawmakers argued that opposition lawmakers. under the existing administration directives, each approved Chinese In the cross-Taiwan Strait investment project valued at more trade deal signed June 21, Taiwan than US$200,000 will be allowed has only agreed to open to Chinese to have two Chinese nationals investment and Chinese posted in Taiwan. companies' opening business footholds here, officials of the “The administrative rules can MOEA's Department of be revised at any time, without the Commerce said, rebutting need for legislative review,” they allegations that the pact will open said, expressing concern over the Taiwan's employment market to possibility of such a restriction Chinese workers. being relaxed. Earlier in the day, Legislators Pan made note of Taiwan's Pan Men-an and Wu Yi-chen, both recent agreement to open the of the opposition Democratic construction and related service Progressive Party, publicly blasted sectors to Chinese investors. The the service trade deal as “a poison category covers “construction apple” in the employment market. waste cleaning services,” meaning that “even the jobs of cleaners are The apple will “turn business rendered to the mainland,” he said. owners into middle aged or elderly According to Pan, around 77,000 jobless,” “narrow the gap between people in Taiwan work in the the average wages in Taiwan and building cleaning and China in the service sector,” and waste-handling sectors, which draw Chinese immigrants provides services ranging from disguised as investors to Taiwan, washing buildings and waxing they predicted. floors to pest control and waste recycling. 6/28 MOFA officials called the Approximately 260 participants possible impact on such workers from Taiwan and UK attended the “exaggerated,” saying that Chinese meeting. businesses in Taiwan will be required to hire local people as During the plenary session, frontline workers.(2013/06/29 The Mr. SCHIVE Chi, Minister China Post) without Portfolio, Executive Yuan delivered a speech on “Why RMB Joint Meetings, Seminar and Products Matter?”. Mr. Stephen Trade & Investment Mission Green, Chief Researcher, Greater The 15th Joint Meeting of the Taiwan China, Standard Chartered Bank Britain Business Council made a presentation on “China and The 15th Joint Meeting of the the World Economy in 2013-14“.