Taiwan's WTO Trade Policy Review Reports

Taiwan’s WTO Trade Policy Review Reports

Pasha L. Hsieh*

The Republic of China joined the World Trade Organization (WTO) as the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) in 2002. Pursuant to the Trade Policy Review Mechanism, Taiwan participated in the WTO review process in 2006, 2010 and 2014. Chen-huan Hsiao of the Ministry of Economic Affairs (MOEA) provided a detailed account of Taiwan’s first review of the trade policies and practices in Volume 24 of the Yearbook. This Special Report includes a brief introduction and the two government reports submitted to the WTO for the second and third review meetings. Taiwan is the world’s 18th largest trading economy and external trade con- tributes to 70% of its gross domestic product. The major trading partners include Mainland China, Japan, the United States, Hong Kong, South Korea, the European Union and states of the Association of Southeast Asian Nations. As the reports indicate, Taiwan’s major domestic reforms include the estab- lishment of the Intellectual Property (IP) Court and the IP Branch of High Prosecutors Office in 2008, as well as the creation of the Free Economic Pilot Zones in 2013. Taiwan has actively participated in the Doha Round negotiations and affirmed the Doha Development Agenda (DDA) by contributing to the DDA Global Trust Fund and granting duty-free access to least developed country exports. Taiwan is a party to the negotiations of the Information Technology Agreement expansion, the revision of the Agreement on Government Procurement, and the plurilateral Trade in Services Agreement. As of 2014, Taiwan has taken part in four WTO dispute settlement cases as a complainant and in 87 cases as a third party.1 At the regional level, Taiwan has engaged in various initiatives of the Asia-Pacific Economic Forum. To increase Taiwan’s capacity in trade negotiations and disputes, the MOEA established the Office of Negotiations in 2007. The government also set the policy goal of having free trade agreements (FTAs) and economic cooperation agreements (ECAs) cover 60% of total trade by 2020 under the FTA/ECA Roadmap enacted in 2012. In addition to FTAs with five Central American

* Assistant Professor, Singapore Management University School of Law. E-mail: pashahsieh@ smu.edu.sg. 1 The four cases include DS274, DS318, DS377 and DS482.

diplomatic allies (Panama, Guatemala, Nicaragua, El Salvador and Honduras), Taiwan concluded FTAs with New Zealand and Singapore in 2013.2 Taiwan and Mainland China signed the Economic Cooperation Framework Agree ment (ECFA) in 2010. Under the ECFA, the Cross-Strait Bilateral Investment Protection and Promotion Agreement and the Trade in Services Agreement (TSA) were concluded in 2012 and 2013, respectively. The TSA and the Mainland Affairs Council-drafted Cross-Strait Agreement Supervisory Bill, which will govern the congressional review procedures of agreements with Mainland China, are pending in the Legislative Yuan. These FTAs are of importance to Taiwan’s current efforts to join the Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership.

Annex 1: Trade Policy Review Report by Taiwan, WT/TPR/G/232, May 31, 2010 Annex 2: Trade Policy Review Report by Taiwan, WT/TPR/G/302, July 29, 2014

Annex 1: Trade Policy Review Report by Taiwan, 2010

I Overview: The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu in the World Trading System

1. Since the first trade policy review in 2006, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has continued to be a genuine supporter of trade liberalization. Foreign trade remains the primary economic driving force for the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu as it is an export-oriented economy; however, due to the serious impact of the global economic recession during the period of review, the amount of export trade accounting for GDP decreased from 68.0% in 2006 to 62.51% in 2009. 2. Despite the drastic economic downturn in 2009, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, remains a true believer in free and fair trade as well as the rules-based multilateral trading system, and is committed to the promotion of trade liberalization. The multilateral trading system under the WTO underpins not only market access opportunities abroad for Members to promote global economic growth, but also domestic reforms to improve their respective economic efficiency. Consequently, the Separate Customs Territory of

2 These two agreements are officially known as the Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu on Economic Cooperation (ANZTEC) and the Agreement between Singapore and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Partnership (ASTEP).