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Taiwan’s Experiences in Implementing its WTO Accession Commitments

Explore Taiwan's adherence to WTO commitments, showcasing decision-making structures, enforcement, and transparency practices. Learn about Bureau of Foreign Trade roles, inquiry points, enforcing measures, and challenges faced in implementing trade policies.

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Taiwan’s Experiences in Implementing its WTO Accession Commitments

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  1. Taiwan’s Experiences in Implementing its WTO Accession Commitments Bureau of Foreign Trade Ministry of Economic Affairs 22 January 2007

  2. Overview • Decision-making Mechanism • Executive Agency~BOFT • Enquiry Points • Enforcement • Transparency • Notification • Import/Export Control • Dispute Settlement • Trade Policy Review • Training and Public Communication 2

  3. Chronicle of Taiwan’s Accession 3

  4. I.Decision-making Mechanism Premier’s Level Chairperson: Vice Premier Vice Chairperson: Minister of Economic Affairs Commissioners: Secretary General of Premier; Ministers of Foreign Affairs, Finance, Transportation and Communications, Health, Agricultural Affairs, Labor Affairs, Environment, Economic Planning & Development, Financial Supervisory, and Mainland Affairs Decision-making Emergency Reporting Mechanism by Agencies Minister’s Level Chairpersons:Deputy Ministers of Economic Affairs/Foreign Affairs Vice Chairperson: Director General of Bureau of Foreign Trade (BOFT, MOEA); Director General of Department of Economic and Trade Affairs (MOFA) Commissioners: Heads of Relevant Bureaus, Departments, Commissions Coordinating Directors General’s Level （17 Working Groups) Agriculture, SPS, TBT, Investment, Trade Rules, Market Access, Rules of Origin, Import Licensing, Services Trade, IPR, Civil Aircraft, Government Procurement, Trade & Development, Trade & Environment, Regional Trade Agreements, Trade Facilitation, Competition Coordinating/Implementing 4

  5. Bureau of Foreign Trade II. Executive Agency • Multilateral (WTO, APEC, OECD) • ImEx Management • Bilateral 5

  6. III. Enquiry Points

  7. III. Enquiry Points General Enquiry Point:Bureau of Foreign Trade (National website on WTO.org) Click 7

  8. III. Enquiry Points 8

  9. Bureau of Animal and Plant Health Inspection and Quarantine, Council of Agriculture Tel: +886 2 2343 1401 Fax: +886 2 2343 1400 Email:wtosps@mail.baphiq.gov.tw III. Enquiry Points SPS Enquiry Point: TBT Enquiry Point: • Bureau of Standards, Metrology and Inspection, Ministry of Economic Affairs Tel: +886 2 3343 5115 Fax: +886 2 2343 1804 • Email:tbtenq@bsmi.gov.tw 9

  10. III. Enquiry Points Number of enquiry from other members: Number of enquiry requested by Taiwan: Benefits: efficient, responsive, and transparent. 10

  11. IV. Enforcement

  12. IV. Enforcement Tariff Reduction: Unit: % Tariff Rates after Accession: Note: Items under implementation: automobiles, fishery, some agricultural products. 12

  13. IV. Enforcement Industrial Policy and Market Opening: • Tariffication:Tariff Rate Quota (TRQ) applied to small passenger vehicles; tariff rate reduced to 17.5% by 2011. • Elimination of subsidies & other types of favorable treatment: • Export subsidy. • 3% tax deduction for local R&D of car engines, bodies and chassis by 2005. • Restrictions lifted: • Import of motorcycles over 150 c.c. allowed by the 6th month after accession. • Manufacture and import of diesel engine small vehicles allowed. 13

  14. IV. Enforcement Others: • Elimination of local content requirements on automobiles, motorcycles, and components thereof; • Abolition of monopoly system, including: “Monopoly Tax” replaced by customs duty, Tobacco and Alcohol Tax, and Business Tax on imports of tobacco and alcohol. (For domestic tobacco and alcohol, only the Tobacco and Alcohol Tax and Business Tax are imposed.) 14

  15. IV. Enforcement Difficulties faced: • Continuous conservative pressure from sensitive sectors, e.g., garments, automobiles in the Doha Negotiations. • Controversial rice wine internal tax: • NT$185/L for all kinds of distilled spirits, for rice wine NT$40 in 1998; • Problems of “false wine” (produced with methanol); • Everlasting debate in the legislature. 15

  16. V. Transparency

  17. V. Transparency Official Journals/Gazettes: • Prior to 2004: Each ministry published its own official journal: • Different distribution methods, formats; • Public information was published redundantly and not easily obtained. • After 2004: “Freedom of Information Law” introduced. A new gazette system starting from 2005, in Chinese and English. (http://gazette.nat.gov.tw/egFront/eng/EngIndex.jsp) Click 17

  18. V. Transparency The Executive Yuan Gazette Online: 18

  19. VI. Notification

  20. VI. Notification • Notification made once upon entry: completed in 2002 • Periodic notification: on a regular basis • Updating notification: when necessary 104 notifications, pursuant to 38 obligations, were made in the 1st year of accession (2002) --Taiwan was the first WTO member to fulfill all of the notification requirements (as stipulated by the Annual Reminders of Notification list). 20

  21. VI. Notification National Notification Authority:Bureau of Foreign Trade Permanent Mission to WTO Regular (laws & regulations) • Bureau of • Foreign Trade • Checking • Filing WTO/CRN (Central Registry of Notifications) Document Circulation Urgent (e.g. SPS/TBT measures) 21

  22. Agencies in charge or concerned Enquiry Points Document Circulation VI. Notification Questions/ Comments Regular Regular Regular Regular Urgent Taiwan’s Commitment: To provide a comment period at least60 calendar days before all laws, regulations and other measures pertaining to or affecting trade in goods, services, or TRIPS are implemented. 22

  23. VII. Import/Export Control

  24. VII. Import/Export Control • Goal：Liberalization and facilitation • Law：Article 11 of Foreign Trade Act • Export/import of goods shall be liberalized provided, however, that restriction thereof may be imposed by reason of the requirements of international treaty, trade agreement, national defense, social security, culture, hygiene, environmental/ecological protection, or policy. • System：Negative List -- free trade is the rule and restriction is the exception • A.List of Commodities Subject to Export/Import Restriction • Table 1--Export/Import Prohibition • Table 2--Conditional Export/Import • B.List of Commodities Entrusted to Customs for Export/Import Examination 24

  25. VII. Import/Export Control A Commodities subject to export prohibition (Table 1) 、 Number of Name of Product Tariff Items Dog meat 1 Other plants, used for pharmacy 5 B anned toxic chemicals 6 Armored vehicles, warships, and military weapon s 7 Mushroom products containing narcotics 2 Antique or collector weapons 1 Collections or antiques 2 Total 24 B Commodities subject to export licensing (Table 2) 、 Number of Name of Product5 Tariff Items 1 7 CFC Diamonds 3 Machinery or equipment for semiconductor production 21 Bromometh ane (Methyl Bromide) 2 Total 41 25

  26. VII. Import/Export Control A Commodities subject to import prohibition (Table 1) 、 Name of Product Number of Tariff Items Mushroom products containing narcotics 2 Dog meat 1 Puffer fish 5 Poppy seeds 1 Banned toxic chemicals 25 Narcotics and preparations 1 Hazardous waste 2 Halon and Fluoro - chloro carbon compounds 19 Total 5 6 B. Commodities subject to import licensing (Table 2) Name of Product Number of Tariff Items Diamond 3 10 HCFC Lead, Cadmium, Chromium waste and scrap 3 Bromomethane (Methyl Bromide) 2 Steel and iron products 6 Total 24 26

  27. VII. Import/Export Control C. Tariff rate quota ： Name of Product Number of Tariff Items Rice and rice - based products 30 Deer velvet 1 Liquid milk 17 Peanuts and processed products 11 Red beans 9 Garlic, garlic bulbs 3 Shiitake (forest mushrooms) 1 Dried day lilies 1 Coconut s 1 Betel nuts 1 Bananas 2 Pineapples 1 Mangoes 1 Shaddocks 1 Other Fresh pears (excluding European pears) 1 Persimmons 1 Longans 1 Mackerel 8 Carangid fish 4 Herrings, sprat sardines, and anchovies 21 27 Motor vehicle and chassis 26 Total 142

  28. VII. Import/Export Control 28

  29. VII. Import/Export Control Strategic High Technology Commodity Export Controls (SHTC) • Key Administrative Approaches • Administrative Authorities And Their Respective Capabilities • Approaches Toward Strengthening the Export Control System and Challenges for Taiwan • Catch-All Control System 29

  30. VII. Import/Export Control Strategic High Technology Commodity Export Controls • SHTC’s Categories • Restricted Areas • Self-management of Exporters • Permit Issuance Administration • Criminal Penalties • Administrative Penalties • Challenges and Needed Efforts 30

  31. Thank you.

  32. VIII. Dispute Settlement

  33. VIII. Dispute Settlement Experience in Applying the WTO DS Mechanism • Current Status: 33

  34. VIII. Dispute Settlement Case 1. The US Definitive Safeguard Measures on Certain Steel Products • 2001/6/28: The US declared the imposition of safeguard measures on certain steel products. • 2002/8/22: A Panel was established in response to requests by 8 WTO Members. Taiwan participated in the proceedings as a third party. • 2002/12/12: Taiwan held consultations with the US. In addition, 13 WTO Members requested consultations with the US under the WTO DSU. • 2003/7/11 & 11/10: The US steel safeguard measures were found inconsistent with relevant WTO Agreements by the Panel and Appellate Body. • 2003/12/5: The US lifted the disputed measures. 34

  35. VIII. Dispute Settlement Case 2. Anti-dumping Measures Imposed by India • 2005/2/16: Taiwan held consultations with India on 7 AD measures imposed by India on Taiwanese products (Acrylic Fibers, Sodium Nitrite, Analgin, Potassium Permanganate, Paracetamol, Caustic Soda, Green Veneer Tape) according to the WTO DSU. • The result was fruitful. India terminated 5 out of 7 measures due to the consultations. • 2006/8/23: Taiwan held a 2nd round of consultations on the remaining Caustic Soda case. 35

  36. VIII. Dispute Settlement Case 3. AD Duties on DTY by South Korea Comparison of dumping margins among affected countries 36

  37. VIII. Dispute Settlement Case 4. China Steel Safeguard • 2002/12/12: Taiwan held consultations with China. 37

  38. IX. Trade Policy Review

  39. IX. Trade Policy Review Outline • 1. WTO Trade Policy Review Mechanism (TPRM) • 2. Preparing for the Trade Policy Review Meeting • 3. Questions from WTO Members • 4. Meeting

  40. 1. WTO Trade Policy Review Mechanism (TPRM) • 1.Objectives of the TPRM • The TPRM is required to periodically review the trade policies and practices of all Members, in order to achieve greater transparency in, and understanding of, Members’ trade policies and practices. • It is not intended to serve as a basis for the enforcement of specific obligations under the Agreements or for dispute settlement procedures, or to impose new policy commitments on Members. • 2.Frequency of reviews－ defined in terms of their share of world trade • Top four trading entities (EU, USA, China, Japan) shall be reviewed every two years. • The next 16 (ROC included) shall be reviewed every four years. • Other Members shall be reviewed every six years. 40

  41. 1. WTO Trade Policy Review Mechanism(TPRM) • 3. TPR Meeting • The Basic Components of a TPR Meeting: • - WTO Secretariat Report • - Government Report (by Member under review) • - Statement presented by Member under review and answers to questions posed by other Members • The Procedure of a TPR Meeting: • - Day 1 (First session): Opening statements by Member under review (15 minutes) and discussant; remarks and questions from the floor. • - Day 2 (Recession): Member under review prepares its responses . • - Day 3 (Second session): Member under review replies to questions; discussion is held; session is concluded by Chairperson. 41

  42. 2. Preparing for the Trade Policy Review Meeting 1.WTO Secretariat collected information and visited capital (Taipei) 42

  43. 2.Preparing for the Trade Policy Review Meeting 2.Preparation before the Mission left for the meeting 43

  44. 2. Preparing for the Trade Policy Review Meeting 3.Contents of WTO Secretariat Report (107 pages) • Economic environment: Macroeconomic performance, policies andprospects; developments in trade; tax reform; financial reform… • II. Trade policy regime:Trade policy objectives; trade agreements and arrangements; trade disputes and consultations… • III. Trade policies and practices (by measure):Measures directly affecting imports and exports • IV. Trade policies (by sector):Agriculture, Energy and Utilities, Manufacturing, Services 44

  45. 2. Preparing for the Trade Policy Review Meeting 4.Contents of Government Report (21 pages) I. Introduction:Support multilateral system and actively participate in Doha Round negotiations. II. Economic Developments (2002-2005):Statistics on economic performance, trade and foreign investment. III. Economic and Trade Policy Regime:Adjustments for economic transformation, implementation of accession commitments, ongoing reforms. IV. Trade Policy Developments:Multilateral activities (WTO/DDA, OECD); bilateral trade relations (FTAs, RTAs). V. Future Policy Directions:Raising competitiveness and moving toward sustainable development, promoting further liberalization. 45

  46. 2. Preparing for the Trade Policy Review Meeting 5. The Mission TPR Meeting:20 and 22 June 2006 Head of the Mission:Vice Minister of the MOEA Participants:Total 32 members: MOFA (2), MOF (2), Central Bank (2), MOEA (13) .… 46

  47. 3. Questions from WTO Members 1.Questions and Issues • Questioned by 15 members:Singapore (8); Switzerland (6); New Zealand (24); Japan (24); China (37); EU (39); Australia (11); USA (18)、Hong Kong (6); Canada (31); Turkey (7); Colombia (40); Costa Rica (31); Korea (9); Brazil (7). Total number of questions: 298. • Issues: 47

  48. 4. Meeting 1. First day (20 June): Attended by WTO Director General Pascal Lamy (1)Chairperson of TPR Meeting: The Ambassador of Columbia presided over the meeting. (2) Statement by Head of Mission (Vice Minister of MOEA; 30 minutes) (3) Discussant remarks (4) Remarks and questions from the floor 2. Second day (21 June) (Recession) Member under review prepared its responses. 3. Third day (22 June): Attended by WTO Deputy Director General Rufus H. Yerxa Vice Minister of MOEA replied to questions and remarks from the discussant and other Members. 48

  49. 5. Participating in Other Members’ TPR Meetings 1. Taiwan’s criteria for selecting WTO Members for a Trade Policy Review (TPR): (1) Major trading partners with which we have a considerable amount of bilateral trade and investment (2) Important export and/or import markets 49

  50. 5. Participating in Other Members’ TPR Meetings 2. Process of carrying out a TPR: (1). Collect the WTO Secretariat’sTPR Report and/or the soon-to-be-reviewed country’s TPR Report. (2) Distribute the individual chapters of the two Reports to relevant agencies for a preliminary review. (3) Collect a draft of questions or responses from the various agencies. (4) Engage in further review and discussion between the BOFT, agencies and TPKM representatives in Geneva. 50

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