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Taiwan ’s Trade Performance and Policy

Explore Taiwan's impressive foreign trade performance, trade policies, and future prospects. Learn about Taiwan's economic growth, major trading products, partners, and global trade forecasts.

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Taiwan ’s Trade Performance and Policy

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  1. Taiwan ’s Trade Performance and Policy Chun-FangHSUDeputy Director GeneralBureau of Foreign Trade April 2007

  2. Contents • Taiwan Profile • Foreign Trade Performance • Missions of the Bureau of Foreign Trade(BOFT) • Trade Policies and Measures in Taiwan • Future Prospects

  3. Taiwan ProfileSmall Yet Big Sources: Directorate General of Budget, Accounting and Statistics Executive Yuan, R.O.C

  4. Taiwan Profile Economic growth rate Trade growth rate Sources: Global Insight Inc ; Directorate General of Budget, Accounting and Statistics, 2006 figures

  5. Taiwan As No. 1 Sources: Industry &Technology Intelligence Service (ITIS)and IDB

  6. Since the 1960’s, hard work by small and medium enterprises, coupled with forward looking government policies, have helped Taiwan’s economy to perform brilliantly. Taiwan Profile How does Taiwan create economic miracles Strategies of import substitution and export expansion have enabled Taiwan to spread its wings and soar. Taiwan has been the world’s biggest supplier of many products, creating a brilliant image for the Made-in-Taiwan label. Powered by industrial transition and upgrades, Taiwan’s foreign trade has soared to a series of record levels, increasing 1,317-fold from 1955 to 2006. Both exports and imports chalked up steady growth in 2006, bringing Taiwan’s total trade to US$ 426.7 billion.

  7. Industrial Development of Taiwan Past, Now and Future Knowledge Industries Industrial Restructuring High-Tech Industries Capital & Technology Intensive Industries Rapid Growth of Light Industry Consumer Goods Industry Economic Reconstruction 1940s 1950s 1960s 1970s 1980s 1990s 2010s 2000s

  8. Foreign Trade Performance 1. Taiwan Foreign Trade Statistics 2. World Trade Ranking For Taiwan 3. Analysis of Major Trading Products 4. Analysis of Major Trading Partners 5. Trade Growth in Comparison between the Asian Countries 6. Forecast of Global Foreign Trade 7. Forecast of the ROC's Foreign Trade

  9. Taiwan Foreign Trade Statistics Unit:US$billion；% years items Sources: Customs Statistics of R.O.C

  10. 2. World Trade Ranking for ROC in Taiwan Unit:US$ Billion % Data source：WTO International trade statistics 2007

  11. 3-1. Analysis of Major Trading Products Taiwan’s Major Export Products in 2006

  12. 3-2. Analysis of Major Trading Products Taiwan’s Major Import Products in 2006

  13. 4-1. Analysis of Major Trading Partners EXPORT DISTRIBUTION IN 2006（Export Value: US$ 2,240.0 billion） Including Hong Kong Note: ASEAN consists of six countries including: Singapore, Malaysia, Indonesia, Thailand, Philippines and Vietnam

  14. 4-2 Analysis of Major Trading Partners IMPORT DISTRIBUTION IN 2006（Import Value: US$ 2,027.1 billion） Including Hong Kong Note: ASEAN consists of six countries including: Singapore, Malaysia, Indonesia, Thailand, Philippines and Vietnam

  15. 5. Trade Growth in Comparison between the Asian Countries Unit：% Source︰Customs Statistics

  16. 6. Forecast of Global Foreign Trade According to the latest forecast of Global Insight Inc. in March, 2007. In 2007 the global economic growth rate is 3.5%; Global exports growth rate is 10.8%, imports growth rate is 10.8%. Year Item Sources: Global Insight Inc

  17. 7. Forecast of the ROC's Foreign Trade According to the DGBAS forecast, In 2007, ROC in Taiwan’s economic growth rate is 4.3%, exports and imports growth rate reach 6.2% and 6.1% respectively. Year Item Sources: Directorate General of Budget, Accounting and Statistics Executive Yuan, R.O.C ( DGBAS )

  18. Missions of the Bureau of Foreign Trade(BOFT)

  19. To draw up and implement trade policies and regulations. To participate in the activities of multilateral trade organizations and enhance bilateral trade relations. To handle and coordinate trade negotiations, consultations and disputes To negotiate and prepare for signing free trade agreements Missions of the BOFT To administer export/import regime and provide guidance to trade businesses To promote foreign trade, to create an environment conducive to the development of foreign trade through the building of international exhibition halls, promotion of paperless trading, trade facilitation, and establishment of global trade information websites. To supervise and coordinate MOEA overseas offices. To communicate with and guide trade-related groups and organizations

  20. Organizational Chart of the Bureau of Foreign Trade Multilateral Trade Affairs Division (WTO, OECD and other international trade and economic affairs) Deputy Director General Bilateral Trade Division I (Asia, the Middle East, .Oceania, Mainland China and Mongolia) Bilateral Trade Division II (Europe, Americas and Africa) Trade Promotion Division (trade promotion affairs) Director General Licensing and Administration Division (affairs of export and import administration) Commodity Classification Committee (product classification and publication) Deputy Director General e-Commerce Task Force (trade facilitation and international cooperation affairs ) Free Trade Agreement Task Force (free trade arrangements with trading partner) APEC Task Force (trade policies within the framework of the APEC)

  21. Trade Policies and Measures in Taiwan • Participating in international trade and economic organizations. • Building bilateral economic and trade relationships as well as regional cooperation. • Strengthening trade promotion activities. • Improving the trade environment.

  22. (1)WTO 1. Participation in International Economic and Trade Organizations (2)APEC (3)OECD

  23. GATT/WTO trade rounds

  24. The WTO began life on 1 January 1995, but its trading system is half a century older. Since 1948, the General Agreement on Tariffs and Trade (GATT) had provided the rules for the system. The last and largest GATT round was the Uruguay Round which led to the WTO’s creation. Whereas GATT had mainly dealt with trade in goods, the WTO and its agreements now cover trade in services, and in traded inventions, creations and designs (intellectual property). (1-1)WTO At the Fourth Ministerial Conference in Doha, Qatar, in November 2001 WTO member governments agreed to launch new negotiations.

  25. Taiwan became a full member of the WTO on 1 January 2002. Since then, it has participated in more than 651 WTO meetings, and submitted 166 documentary opinions. Taiwan was very pleased when the Doha Round of negotiations resumed across the board in February 2007. Taiwan will continuously and proactively participate in future negotiations. (1-2)WTO Taiwan has conducted bilateral negotiations with 13 countries that are in the process of WTO accession. Negotiations with Cambodia, Saudi Arabia, Russia, Vietnam and Ukraine have been completed. Taiwan has assisted businesses in combating foreign countries’ trade relief measures, such as antidumping duties, countervailing duties, and safeguards. Taiwan has worked through both the WTO and bilateral channels to request that countries imposing such measures fairly handle cases involving our businesses.

  26. Taiwan had its first WTO Trade Policy Review (TPR) Meeting on June 20 and 22, 2006. Our delegation responded to questions posed by other WTO Members, and introduced the development of Taiwan’s economic system and the role Taiwan has played in international economic activities since its accession to the WTO. As a result of its excellent performance, our mission received praises from WTO Members, and the WTO circulated a press release lauding it as a “TPR model.” (1-3)WTO We have participated in the TPR meetings of other Members. In 2006, we attended the TPR meetings of 17 WTO Members, including the USA, China and Colombia.

  27. Attending annual CTI and Sub-fora Meetings, SOM, MRT,AMM and AELM Establishing APEC Digital Opportunity Centers (ADOC) in 6 APEC partner member economies, helping them to reduce the ‘digital divide’ (2)APEC Holding 18 APEC activities in 2006, notably: a.APEC Local Cultural Industry Virtual Exposition b.ADOC Week and ADOC Award Ceremony Hosting 15APEC activities in 2007, especially a.The 25th APEC Intellectual Property Expert Group Meeting; b.The 29th APEC Transportation Working Group Meeting.

  28. Taiwan is an observer in the Competition Committee, the Steel Committee and the Fisheries Committee. Taiwan has been invited to attend the 2007 Global Forum and various other specific meetings. (3)OECD Taiwan has participated in 218 OECD seminars and conferences since 1989, including the High Level Group (HLG) on the steel subsidies agreement, the Working Party on Shipbuilding, and the Global Trade Forum.

  29. (1)Strengthening bilateral economic and trade relations 2. Building bilateral economic and trade relationships as well as regional cooperation. (2)Signing Free Trade Agreements(FTAs) (3)Developing cross-strait economic and trade relations

  30. (1) Strengthening Bilateral Economic and Trade Relations To strengthen bilateral economic and trade relations by formulating various action plans and promotional campaigns. Bilateral Economic and Trade Relations To hold bilateral economic conferences with many trading partners and organize economic and trade missions to visit them. To increase two-way trade through bilateral investment, by promoting the signing of agreements on investment protection, ATA Carnets, and avoidance of double taxation with trading partners.

  31. Bilateral economic conferences with trading partners the US, Japan, South Korea, New Zealand, Australia, Singapore, the Philippines, Malaysia, Indonesia, Vietnam, the EU, the UK, France, Spain, Saudi Arabia, South Africa, Swaziland, its five Central American allies (Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica), Paraguay, the countries of South Asia, and Russia.

  32. TW-Guatemala in force 07/01/2006 TW-El Salvador-Honduras to be signed in mid 2007 United States Japan TW-Dominican Republic 2nd Round in May 2007 TW-Nicaragua signed 06/16/2006 The Philippines Singapore TW-Panama in force 01/01/2004 TW-Costa Rica TW-Paraguay New Zealand (2-1)Signing Free Trade Agreements(FTAs)Taiwan’s Response to RTAs/FTAs Signed or in force Under negotiations: Diplomatic Allies Major Trading Partners

  33. DOMINICAN REPUBLIC PANAMA GUATEMALA COSTA RICA EL SALVADOR NICARAGUA HONDURAS PARAGUAY JAPAN NEW ZEALAND PHILIPPINES SINGAPORE UNITED STATES (2-2)Signing Free Trade Agreements(FTAs)Taiwan’s Response to RTAs/FTAs Signed or in force Under negotiations: Diplomatic Allies Major Trading Partners

  34. (2-3)Signing Free Trade Agreements(FTAs)Taiwan’s Response to RTAs • Taiwan-Panama FTA results ( Jan 1, 2004 in force) • Taiwan- Guatemala FTA results ( Jul 1, 2006 in force) Compared to 2005 • Two-way trade↑25.4% (2006) • Guatemala exports to Taiwan↑ 101% (2006) • Taiwan exports to Guatemala↑ 10.5% (2006)

  35. (3-1) Developing Cross-Strait Economic and Trade Relations • All cross-strait trade principles are carried out in a gradual order : • Taiwan's interest first • Global perspective • Mutual benefits • Sound risk management

  36. (3-2) Developing Cross-Strait Economic and Trade Relations Cross-Strait trade : 1995：US$21.0 billion 2006：US$115.9 billion Portion of Total trade 2006 9.8% 1995 18.0% Mainland China Mainland China 4.8% H.K. H.K. 9.2% others others 72.8% 85.4%

  37. (3-2) Developing Cross-Strait Economic and Trade Relations Export to Mainland China and H.K. : 1995：US$17.9 billion 2006： US$89.2 billion Portion of Total Export 2006 Mainland China 1995 Mainland China 16.0% H.K. 7.7% 23.1% others others 60.2% H.K. 76.3% 16.7%

  38. (3-3) Developing Cross-Strait Economic and Trade Relations Import From Mainland China and H.K. : 1995：US$3.1 billion 2006： US$26.7 billion Portion of Total Import Mainland China12.2 Mainland China 3.0% 2005 1995 H.K. 1.8% H.K. 0.9% others others 86.9% 95.2%

  39. (1) Implementing the Competitive Industries to Overseas Markets Program 3. Strengthening trade promotion activities (2)Implementing the Assistance Plan for Professional Traders in Auto Parts and Accessories (3) Integrating Private Sector Efforts to Explore New Markets (4) Branding Taiwan

  40. (1-1) Implementing the Competitive Industries Develop Overseas Markets Program Structure Target Industries Target industries with roots in Taiwan Competitive Industries Develop Overseas Markets Program Strategies Target Market Markets are selected in conjunction with competitiveness of target industries and policy needs. Implemented date: From 2006 to 2008.

  41. (1-2) Implementing the Competitive Industries to Overseas Markets Program . Competitive industries: semiconductors, FPD, ICT, auto parts and accessories, and functional textiles Select Target Industries New industries with strong prospects :auto electronics, biotechnology, power saving products, digital appliances, and medical tourism potential Service industries :franchising, cultural and creative industries, and brand licensing

  42. (1-3) Implementing the Competitive Industries to Overseas Markets Program The Target Market of 2006 South Africa Brazil South Korea Thailand Vietnam Russia Japan India

  43. (2)Implementing the Assistance Plan for Professional Traders in Auto Parts and Accessories Cultivate professional traders to integrate the domestic SME supply system and facilitate their entry of Taiwan’s auto parts industry into the international auto supply chain. Automobile parts of the international supply chain Assist professional traders in learning about the laws and regulations in target markets, obtaining necessary certifications and developing markets.

  44. (3) Integrating Private Sector Efforts to Explore New Markets Starting in 1998, the BOFT budgeted NT$150 million annually to help various import/export associations to integrate the strengths of their members in expanding international markets; this budget was increased to NT$290 million in 2006. To date, more than NT$1.595 billion has been disbursed to over 100 associations. Import/export associations Their main activities have been to organize group visits to foreign countries, attend trade shows, invite foreign trade missions to Taiwan, sponsor or participate in international economic and trade conferences, organize seminars on import/export business opportunities, and publish trade and economic materials.

  45. (4) Branding Taiwan From 2006, “Branding Taiwan plan”, there are two ultimate goals of Branding Taiwan. The first is employing resource integration to assist the establishment of brands and create a favorable environment in which they may be developed; the second is to aid Taiwan enterprises in brand development and increase the value of Taiwan’s international brands. The “Branding Taiwan” Plan This plan includes six measures:（Ⅰ）establishing a branding venture capital fund,（Ⅱ）creating a legal environment conducive for branding,（Ⅲ）establishing a brand assessment system,（Ⅳ）setting up training programs to supply the demand for relevant talent,（Ⅴ）building a consultation and information system for information on branding, and（Ⅵ）raising the international profile of Taiwan's distinctive industries.

  46. Trade Liberalization • and Facilitation 4. Improving the Trade Environment (2) A Global Trade Information Network

  47. (1-1)Trade Liberalization and Facilitation Continue to relax regulations on imports and exports

  48. (1-2)Trade Liberalization and Facilitation

  49. (1-3)Trade Liberalization and Facilitation The “Trade Facilitation Plan” started by simplifying the documents used in customs clearance, licensing, inspection, and so on, and by re-engineering the relevant procedures. We also thoroughly reviewed the laws and regulations involved, and went through a long process of drafting and recommending revisions. We thus removed a number of outdated and inefficient procedures in order to create a better, more convenient trading environment in the future Promoting Trade Facilitation BOFT has built up a virtual one-stop platform, Facile Trade Net (FT Net), which can provide the e-services of customs clearance and licensing. Since 14 March 2005, traders have been able to apply for import/export permits, certificates of origin, and inspection and quarantine-related documents via FT Net. More than 1,320,000 document applications were processed through FT Net until the end of 2006. At present, around 80% of all the import and export application procedures may be handled electronically, and it is expected that more procedures will be added to FT Net in 2007

  50. (2-1) A Global Trade Information Network BOFT website (www.trade.gov.tw) The site provides current market information, economic and trade news, information on import/export procedures, trade policies, trade laws and regulations, economic and trade issues, analysis of current economic and trade conditions, information about international trade organizations.

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