Transcript *** 1 - laimaandrikiene.lt

I. Taiwan-An Island of Innovations & Opportunities
II. Role of Taiwan in the Asia-Pacific Region
III. Current Relations between Taiwan and the EU
IV. The Implications of the ECFA
V. The Advantages of a Taiwan-EU FTA
VI. Conclusion
I.Taiwan – An Island of Innovations & Opportunities
Economic Development
Agriculture
Labor intensive Engineering & capital intensive
Phase one
Phase two
Phase three
(1895~1904)
(1905~1930)
(1931~1945)
Period of
Economy
Postwar Light
Set up export 1.Heavy
reconindustry
processing
Industry
struction (1953~1962) zone
2.Reinforce
(1945~
(1962~1972)
Infrastucture
1952)
3.Set up
Industrial
Research
Institute
Technical
development
Economic
reform
(1985~1996)
(1997~2008)
(1973~1984)
Free trade
market
GNP
GDP
13,581
13,198
Science park
10,172
10,032
Ten major
infra-structure
Exportation
Target
Development
Agriculture & Water Resource
Development
Military /
Agriculture to
Industry
Develop
light
industry
Land
reform
4,529
4,424
Agriculture
1,520
1,522
12
12
63
63
229
230
Year
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
1890
[billion NT$]
*GNP: gross national product / GDP: gross domestic product
Data Source: Bureau of Foreign Trade, MOEA; National Statistics; CIA World Fact Book; Wikipedia
I.Taiwan – An Island of Innovations & Opportunities
Taiwan - An Island of Strategic Importance in Global Economy
Area: 36,191 sq km Population: 23.14 million (June 2010)
Government: Multiparty Democracy
GDP: $427 billion (2010) global ranking: 24th
Reserves of foreign exchange and gold: $387.11 billion (February 2011) ; global ranking:
4th (second only to China, Japan and Russia)
GDP per capita: $20,783(2011 est.); PPP per capita: $34, 743 (2010 from IMF)
Total trade amount: $526 billion. (2010) ; the 17th largest exporter ($274 billion), the
18th largest importer ($251 billion); the 25th largest economy.
Outbound investment: 10.29 billion; global ranking 26th (’08 est.)
Total cumulative investment: $175.1 billion; global ranking: 17th (1970-2008)
Data Source: Bureau of Foreign Trade, MOEA; National Statistics; CIA World Fact Book; Wikipedia
I.Taiwan – An Island of Innovations & Opportunities
Taiwan - An Island of Strategic Importance in Global Economy
I.Taiwan – An Island of Innovations & Opportunities
Demonstrating Strength & Stability in Many Other Aspects
Comprehensive Industrial Cluster
• Low-risk investment: global ranking 4th, trailing only Singapore in Asia (Business
Environment Risk Intelligence, BERI 2010)
• Global competitiveness: ranking 8th among 50 countries, trailing only Singapore (1st)
and Hong Kong (2nd) in Asia (IMD World Competitiveness 2010) and global ranking
13th and 4th in Asia (World Economic Forum, WEF 2010)
• Ease of doing business: global ranking 2nd in Asia, trailing only Singapore (World
Bank’s Doing Business 2010 Report)
Intellectual Advantage
• Workforce: 42.9% of the workforce with college, university or higher education
background
• The number of paper published: global ranking 15th in Science Citation Index (SCI
Journal) and 9th in the Engineering Index Journals (EI Journals)
Superior Innovation Capability
• Global Innovation Index 2009-2013: global ranking 6th in Economist Intelligence
Unit’s (EIU) and ranking 11th in Gross Expenditure on R&D (GERD) among the
major OECD countries
Data Source: Bureau of Foreign Trade, MOEA; WTO: 2010 Press Releases, 26 March, 2010; National Statistics, CIA World Fact Book
I.Taiwan – An Island of Innovations & Opportunities
Demonstrating Strength & Stability in Many Other Aspects
Complete and Excellent Infrastructure & Living Environment
• Complete international transportation facilities and logistic capability
• Quality of service in telecommunications.
Comprehensive IPR Protection
• Proactive IPR Protection
• Strong Regulations for Trademark Protection
• Professional Legal Assistance for Dispute Resolution
Abundant Capital Funds
• Mature and active securities and stock exchange market
• Stable exchange rate and fair capital fund costs and interest rates
compared with other Asian countries
• Financial reporting standards gradually converging to the International
Financial Reporting Standards (IFRS)
Data Source: Bureau of Foreign Trade, MOEA; WTO: 2010 Press Releases, 26 March, 2010; National Statistics, CIA World Fact Book
I.Taiwan – An Island of Innovations & Opportunities
Taiwan - An Island of Science, Technology, and Innovation
Global Ranking:
Total Patent: 4th (since ‘99); Utility Patent: 5th; Design Patent: 3rd (since ‘92)
Patents Per Million Population: 1st; Utility Patents Per Million Population: 1st
IMD Technology Infrastructure Ranking: 5th (After US, Singapore, Sweden, Switzerland)
EIU Innovation Ranking: 6th (After Japan, Switzerland, Finland, Sweden, Germany)
Patent Granted in USPTO Per Million Population
Noted: IMD – Swiss International Institute for Management Development
USPTO – US Paten and Trademark Office
Data Source: USPTO, the numbers of 2007 was calculated by TIER; The World Competitiveness Yearbook 2008 (IMD)
Patent Granted in USPTO
I.Taiwan – An Island of Innovations & Opportunities
Incubating the Power of Innovation via Universities
Top 25 Universities in Asia:
Japan #1; Taiwan #2
Overview of Professors’ Academic
Background of Taiwan’s Universities
Major Univ. with Science / Technology
and/or Medical Focuses
I.Taiwan – An Island of Innovations & Opportunities
Shaping the Environment of Innovation via Infrastructure & Industry
33 Multinational Corporations (MNCs) with 43 R&D Centers in Taiwan
Local Enterprises established 100 R&D Centers
infrastructure
Local Corps w/
R&D Centers
MNCs w/
R&D Centers
In Taiwan
Data Source: Ministry of Economic Affairs
I. Introduction of Taiwan
i-Taiwan 12 Projects
Since the inauguration of President Ma Ying-Jeou in 2008, in order to enhance
Taiwan’s competitiveness and speed up its economic growth, the government has
 been actively promoting the “i-Taiwan 12 Projects” covering 12 priority public
construction projects.
Transportation Network
A Fast and Convenient Islandwide Transportation Network,
Taiwan
Kaohsiung Port-City Regeneration, Taoyuan International Airi-City
Industrial Development
12
Central Region New High-tech Industrial Clusters Program,
Intelligent Taiwan, Industrial Innovation Corridors
Projects
Urban and Rural Development
Urban and Industrial Park Regeneration, Farm Village Regeneration
Environmental Protection
Coastal Regeneration, Green Forestation, Flood Prevention
and Water Management, Sewer Construction
12 prioritized public construction projects to regenerate Taiwan’s economic
miracle.
Estimated investment of US$ 126.4 billion within 8 years, including US$ 83.9 billion
by the government and US$42.5 billion by the private sector.
Data Source: Council for Economic Planning and Development, Executive Yuan, June 2009
II. Role of Taiwan in the Asia-Pacific Region
Taiwan’s strategic geographical location
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II. Role of Taiwan in the Asia-Pacific Region
Taiwan is well located in the Asia-Pacific Region
Located in the heart of East Asia, Taiwan
has the shortest average traveling distance
to several countries in Asia and the West
Pacific.
2 days and a half sailing
time on average to the
5 major Asia-Pacific
harbors.
Less than 3 hours flying time
on average to seven major
cities in Western Pacific.
Geographical and
language advantages to
China’s Market.
Providing an essential link in
the supply chains of Asia and
the rest of the world.
OEM & ODM center
of the world for hightech products.
II. Role of Taiwan in the Asia-Pacific Region
Taiwan is one of the largest investors among the ASEAN Countries (19592010 June)
In Million US Dollars
Country
Case
Cumulative Investment
Amount
Ranking
Vietnam
2,124
22, 507.85
1
Indonesia
1,291
13,963.08
8
Thailand
2,108
12,551.99
3
Malaysia
2,299
10,499.14
5
Singapore
467
5,487.83
N.A.
Philippines
1,017
1,875.70
7
Cambodia
244
715.58
6
Data Source: Investment Commission, MOEA
III. Current Relations between Taiwan and the EU
European Missions in Taiwan: 19
Apostolic Nunciature, EU Delegation, Austria, Belgium,
Czech Republic, Denmark, Finland, France, Germany,
Hungary, Ireland, Italy, Luxembourg,The Netherlands,
Poland, Slovakia, Spain, Sweden, UK
Taiwan Missions in European Countries: 27
Holy See, EU and Belgium, Austria, Czech Republic,
Denmark, Finland, France, Germany, Greece, Hungary,
Ireland, Italy, Latvia, Netherlands, Norway, Poland,
Portugal, Slovakia, Spain, Sweden, Switzerland, UK, WTO
Edinburgh, Geneva, Hamburg, Munich (offices)
III. Current Relations between Taiwan and the EU
Trade with the EU (2005-2010)
In Billion US Dollars
Data Source: Bureau of Foreign Trade, MOEA
III. Current Relations between Taiwan and the EU
The European Parliament-Taiwan Friendship Group
The EP-Taiwan Friendship Group was
founded in 1991.
MEP Laima Liucija Andrikiene is the CoChair of the EP-Taiwan Friendship Group.
President Ma Ying-jeou met a delegation
from the European Parliament led by Ms.
Andrikiene on March 31, 2010.
III. Current Relations between Taiwan and the EU
Various initiatives strongly supported by the European Parliament
The President of Taiwan’s Legislative Yuan Wang Jin-pyng led a
delegation to visit the European Parliament in February 2009.
The European Parliament has adopted several resolutions to
strongly support Taiwan’s participation in the international
organizations and activities such as UNFCCC and ICAO and
encourage and commend the efforts undertaken by Taipei
and Beijing to improve cross-Strait relations as well.
The European Parliament adopted the Commission’s
proposal to grant visa waiver to Taiwan’s citizens by an
overwhelming majority on November 11, 2010.
III. Current Relations between Taiwan and the EU
Investment
The EU is the largest foreign direct investor (FDI)
in Taiwan: US$ 29.42 billion (up to 2010 Nov.).
More than 700 European companies operate in
Taiwan, including HSBC, Siemens, GSK, KLM,
Philips…etc.
Taiwan’s investment in the EU: US$2.46 billion (up
to 2009). In December 2009, AUO finalized its
investment of US$ 280 million in Trencin, Slovakia.
Famous Taiwan’s brand names: ACER, ASUS, AUO,
GIANT, Honhai Precision, HTC, MERIDA, MIO
III. Current Relations between Taiwan and the EU
Economic Cooperation
Economic Cooperation Mechanisms have been arranged
in 21 EU member states
Taiwan and the EU have taken turns to hold “Taiwan-EU
Annual Consultation” with the European Commission
since 1981 covering both trade and non-trade issues.
Due to the close and rapid bilateral cooperation and
exchanges in various fields, topics have extended to
politics, trade, research and technology, education and
culture, healthcare and environment and intellectual
property rights.
III. Current Relations between Taiwan and the EU
Agreement on Government Procurement (GPA)
On July 15, 2009, Taiwan acceded to the Agreement
on Government Procurement (GPA) of the World
Trade Organization (WTO).
Taiwan became the 41st GPA of the WTO member.
Other members of the GPA include 27 members of
European Union.
Taiwan’s government procument market, with total
value of US $6.5 billion, is now obligated to open up
to the other 40 GPA signatories.
Taiwan’s firms are also eligible to compete for US$
960 billion of government procurement opportunities
in other members.
III. Current Relations between Taiwan and the EU
Air Transportation
Direct passenger flights operated by Taiwan’s airlines
companies (EVA Air and China Airlines) between Taiwan and
Europe: 44 flights per week to 6 destinations including
Amsterdam, Frankfurt, London, Paris, Rome and Vienna.
Cargo flights operated by Taiwan’s airlines companies: 34
flights per week to 10 destinations including Amsterdam,
Brussels, Frankfurt, Köln, London, Luxembourg, Milan,
Manchester, Prague and Stockholm.
China Airlines Cargo Service Center in Europe: Luxembourg
EVA Air Cargo Service Center in Europe: Brussels.
III. Current Economic Relations between Taiwan and the EU
Sea Transportation
Evergreen Lines, the world’s 4th largest liner operator,
operates more than 180 vessels, covering more than 90
countries including 38 agents/offices in Europe and also
invested in a container terminal in Taranto, Italy.
Yang Ming Marine Transport Corp., the world’s 17th largest
liner operator, owns more than 100 container vessels and
has established 39 offices/agents in Europe.
Wan Hai Lines, the world’s 19th largest liner operator and
the world’s most profitable liner operator in 2002, owns
more than 60 container vessels and is swiftly expanding its
service to more European countries including Romania.
III. Current Relations between Taiwan and the EU
Tourism
More than 8 million overseas trips are made by the 23
million people of Taiwan every year.
Tourists from Europe to Taiwan: 203, 301. (2010 Jan-Oct)
Tourist from Taiwan to Europe: 172,405. (2010 Jan-Oct)
The EU granted Schengen visa waiver to Taiwan citizens
starting January 11, 2011. Croatia also lifted its visa
requirement for Taiwan passport holders on January 1,
2011.
According to Cecilia Malmstrom, Home Affairs
Commissioner, the decision can “enhance EU relations
with Taiwan. It will contribute towards strengthening
our trade and investment relations as well as
people-to-people contact.”
III. Current Economic Relations between Taiwan and the EU
EU-Taiwan Scientific and Research Cooperation
Taiwan set up EU-FP NCP (Framework Programme
National Contact Point) office and 8 thematic NCP offices
in 2009 and 2010. Taiwan has taken part in 21 projects of
the EU Framework Programme (FP6 and FP7).
8 NCPs thematic offices: Energy, Environment, Health, ICT,
SSH, Bio, NMP, and Security.
Taiwan has established official scientific collaborative
relations with 18 EU member states. 42 European
governmental agencies and research institutions have
concluded bilateral cooperation agreements with Taiwan.
III. Current Economic Relations between Taiwan and the EU
Educational Exchanges
European students in Taiwan (2010): 3,899.
Taiwanese students in Europe (2010): 19,000.
The EU set up “The EU Center in Taiwan” in 2009 to promote
academic and cultural exchanges.
Taiwan’s study programmes are in cooperation with 7 European
universities including the University of Cambridge, the University of
London, Leiden University and Université Catholique de Louvain.
Academic exchange programmes between Taiwanese and European
universities: 285 bilateral cooperation agreements have been
concluded.
III. Current Economic Relations between Taiwan and the EU
Cultural Exchanges
The National Palace Museum in Taipei, one
of the World’s four largest museums with
around 700, 000 masterpieces, has been
invited to hold special exhibitions in Berlin,
Paris and Vienna.
Well-known Taiwanese and European
performing art groups such as Cloud Gates
Dance Theatre of Taiwan, Taipei Philharmonic
Orchestra, and Berliner Philharmoniker are
invited to perform in Taiwan and Europe.
IV. The Implications of the ECFA
Economic Cooperation Framework Agreement
What is the ECFA?
In compliance with WTO
principles
A framework agreement (a
quasi-Free Trade Agreement)
No political implications
The ECFA was signed by Taiwan and Mainland China on June 29 , was
ratified by Taiwan’s Legislative Yuan on August 17 and took effect on
September 12.
IV. The Implications of the ECFA
Economic Cooperation Framework Agreement
The Main Objectives of the ECFA
To normalize cross-strait economic and trade relations
•  Although both sides of the Taiwan Strait are members of the WTO, many trade
restrictions in the cross-strait remain.
To avoid Taiwan being marginalized
•  The ECFA will help us participate in regional economic integration and mitigate
the risk of economic marginalization.
To enhance Taiwan’s position as a platform for regional
investment
•  The ECFA will offer incentives for transnational enterprises to take advantage of
Taiwan as a trade and investment springboard to the East Asia market.
IV. The Implications of the ECFA
Economic Cooperation Framework Agreement
Importance of the ECFA to Taiwan
The ECFA is a landmark agreement
between Taiwan and mainland China since
1949.
Intellectual property rights (IPR) for
Taiwan’s products will be further
protected.
The signing of the ECFA is a new
starting point of Taiwan’s outreach
strategy.
IV. The Implications of the ECFA
Economic Cooperation Framework Agreement
Improve Macroeconomic Scale:
The signing ECFA will increase the following figures of Taiwan:
GDP (%)
1.65 – 1.72
Export (%)
4.89 – 4.99
Import (%)
6.95 – 7.07
Total production (US$ million)
Increase Employed Persons
28,004.73 – 28,884.2
257,286 – 263,100
Note: The employment numbers in each industry are estimates based on employment table 2006, published by the
Directorate-General of Budget, Accounting and Statistics
Data Source: “Challenge vs Opportunity – Tasks and Prospects in Signing ECFA”, Bureau of Foreign Trade, MOEA, March 16, 2010
IV. The Implications of the ECFA
Economic Cooperation Framework Agreement
The ECFA’s impacts and real benefits for Taiwan
Multinational corporations are setting up
R&D centers in Taiwan.
ECFA is increasing willingness to invest in
Taiwan.
Industries and financial institutions benefiting
from the ECFA’s Early Harvest will improve
competitiveness.
IV. The Implications of the ECFA
Economic Cooperation Framework Agreement
Widespread optimism for the ECFA among all countries:
The United
States
The EU
Japan
Singapore
• The U.S. State Department Acting Deputy Spokesperson Gordon Duguid:
the ECFA is a “positive development” that the U.S. government is
“encouraged by.”
• Catherine Ashton, the High Representative: the European Union believes
that the expansion of the cross-strait economic relations has a potential
also to benefit the development of its already significant trade and
investment links in East Asia.
• Media news commentators has stated that the time is ripe for Japan and
Taiwan to sign an FTA now that Taiwan and Mainland China have signed the
ECFA
• Singapore’s MOFA has indicated that the signing of the ECFA helps to
advance regional economic cooperation. It expressed willingness to
undertake a joint study with Taiwan on the feasibility of a TaiwanSingapore economic cooperation agreement.
IV. The Implications of the ECFA
Economic Cooperation Framework Agreement
Deepen relations with major trading partners:
The American
Chamber of
Commerce:
• the conclusion of this trade agreement with China
would pave the way for Taiwan to participate in
regional trade blocs and enter into bilateral FTAs with
additional trading partners.
The Japanese • If the ECFA comes into being, it should form a great
opportunity for Taiwan and Japan to discuss the
Chamber of
signing of an FTA.
Commerce &
Industry :
The European • the sooner Taiwan signs the ECFA with China, the
quicker political impediments to other countries
Chamber of
(including the EU) signing economic agreements with
Commerce:
Taiwan will be removed.
IV. The Implications of the ECFA
Economic Cooperation Framework Agreement
The ECFA will enhance Taiwan’s integration with the Asia-Pacific regional
economy as well as its overall strategic position
Joining East Asia’s economic integration and deploying
our business around the world
Protecting the rights and interests of Taiwan’s
businesses and enhancing the industrial division
across the Taiwan Strait
Creating a long-term competitive advantage for
Taiwan’s products
IV. The Implications of the ECFA
Economic Cooperation Framework Agreement
Implications of the ECFA to Taiwan-EU Trade Relations:
The ECFA will consolidate the shared-value
alliance between Taiwan and the EU.
Taiwan could serve as a regional operation
center or springboard for European enterprises.
Closer Taiwan-EU cooperation and partnership
is needed in order to explore Asian markets.
V.The advantages of a Taiwan-EU FTA
Why a Taiwan-EU FTA matters?
• The EU should
consider the signing
of Trade
Enhancement
Measures (TEM) with
Taiwan. The scale of
the benefits created
by improved trade
between Taiwan and
the EU could
compete with those
produced by the EUKorea FTA .
Copenhagen
Economics
Chung-Hua Institute
for Economic
Research (CIER)
• The gains from a
Taiwan-EU FTA far
exceed the benefits
of the Korea-EU
FTA. The substantial
EU gains will result
from lower tariffs
on agricultural and
industrial goods.
• Taiwan offers real
opportunities for
European firms to
increase market
access and raise
their profile in Asia.
In particular, it could
boost the
competitiveness of
the European ICT
sector.
European Centre for
International Political
Economy
V.The advantages of a Taiwan-EU FTA
According to studies conducted by the Chung-Hua Institution for Economic
Research (CIER) and Copenhagen Economics, a Taiwan-EU FTA will create
greater economic benefits for the EU.
Estimated growth in EU’s real GDP of €2.4 billion/yr.
Estimated within 2-5 years
•  Taiwan’s exports to the EU will increase by €9.847 billion
•  EU’s exports to Taiwan will increase by €11.831 billion.
Increase in EU agricultural exports by €0.3 billion/yr.
Increase in EU manufacturing exports by €3.1 billion/yr.
Increase in EU services exports by €0.85 billion/yr.
V.The advantages of a Taiwan-EU FTA
Win-Win situation
Removal of tariffs and non-tariff barriers (NTB’s)
• For EU
•  Enhance EU’s economic overall in terms of more trade, more production, and
more employment
•  Enhance EU’s export to Taiwan (especially cars and processed food)
• Boost the competitiveness of the European ICT sector
•  Removal of service barriers will increase EU’s service exports and foreign
presence in Taiwan
• For Taiwanese consumers
•  Cheaper goods (especially cars and beverages )
•  Wider range of imported products
Reduction of tariffs and NTB’s for Taiwanese imports into EU
• For EU
•  Reduce prices for EU consumers
•  Widen the choice (especially electronics)
•  Benefit sectors using related items as input in their production
Data Source: “Taiwan: Enhancing Opportunities for European Business”, Copenhagen Economics, August 2008
V.The advantages of a Taiwan-EU FTA
Economic Gains for the EU
Removal of barriers will increase the European global export volume
•
•
•
•
•
•
•
•
•
•
•
•
•

Tourism, health and other services (3.4%)
Trade services (3.1%)
Financial Services (2.7%)
Business services such as accounting, engineering and management consulting
(+2.0%)
Insurance (1.8%)
Beverage, tobacco (1.6%)
Communication (1.3%)
Transport (1.1%)
Sugar (0.7%)
Clothing (0.6%)
Dairy (0.5%)
Motor vehicles (0.4%)
Transportation services such as maritime transport and express delivery (1.1%)
Note: According to the analysis of Full Trade Enhancement Measure (a fully fledge FTA
where barriers in all areas are moved) conducted by Copenhagen Economics
Data Source: “Taiwan: Enhancing Opportunities for European Business”, Copenhagen Economics, August 2008
V.The advantages of a Taiwan-EU FTA
Liberalization of EU-Taiwan commercial relations
ECIPE Paper
• The biggest gains would come from “deep integration”, i.e. rules
that address trade-and-investment barriers “behind the border.”
• There are peak tariffs on both sides on TV, video and other
electronics products in the EU, and automobiles and beverages in
Taiwan.
Example: Automotive Industry
• The European automobile exports are hampered by high Taiwanese
tariff peaks (17.5%), the sector also struggles with a number of so
called Taiwan only requirement (standards and double-testing),
making it more costly to supply the Taiwanese market. The removal
of tariffs and non-tariff barriers changes relative prices in the
Taiwanese market without the current barriers. As European cars
become cheaper, this will induce more trade and Taiwanese will buy
more European cars.
Data Source: “Taiwan: Enhancing Opportunities for European Business”, Copenhagen Economics, August 2008
V.The advantages of a Taiwan-EU FTA
EU advantages from cross-strait economic integration
Taiwan has a distinctive niche in the global ICT production chain and Taiwanese ICT
production is increasingly R&D incentive.
Taiwan offers real opportunities for European firms to increase market access and raise
their profile in Asia.
Taiwan can work as a stepping stone for EU to mainland China, and other Asia’s future
growth market.
By building up relations and experience in Taiwan, EU firms can tap into a vibrant Chinese
market.
By gaining market access in Taiwan, EU firms can obtain a successful business model and
establish business partnerships for future expansion in Asia.
VI. Conclusion
Taiwan is well located in Asia-Pacific region.
Taiwan is known for its high product quality, well-educated workforce
and innovation.
Taiwan has formed a “bamboo network” across all industries in China
and Asia-Pacific region, providing foreign investors with easier market
access.
According to New Taipei, conducted by CLSA Asia-Pacific in cooperation
with European Chamber of Commerce in Taipei, Taiwan could develop
as a hi-tech service hub and creative hub for China’s market.
VI. Conclusion
The Agreements reached at the Chiang-Chen Talks have
had direct effects not only on tourism,
transportation and finance, but also benefits
sectors such as electronics, machinery,
petrochemicals, man-made fibers, steel, etc, due
to lower shipping cost and shorter shipping time.
Direct cross-strait shipping has re-established Taiwan’s
economic strategic edges in the Asia-Pacific region as
the “Asia-Pacific Regional Operations Center” for
MNCs.
VI. Conclusion
The advantages of a Taiwan-EU FTA
-- A Win-Win Situation
Global Europe – The European Commission states that Europe’s position in Asia is of
particular importance to Europe’s long-term growth and employment creation. To stay
competitive in the global economy, the European business needs a strong foothold in Asia.
Taiwan’s current administration has focused on reviving Taiwan’s economic growth
through trade liberalization. An economic integration between Taiwan and mainland China
will strengthen Taiwan’s springboard role for European firms’ access to the mainland.
More than 80,000 Taiwanese-owned companies are operating in China, and estimates
provided in the 2008 EU-Taiwan fact file suggest that Taiwanese-owned companies
generate between 10-20% of China’s exports to Europe, creating more business
opportunities for European companies.
For the Taiwanese and EU sides, liberalization on trade through removal of tariffs and
non-tariff barriers will increase sales due to lower prices for consumers; thereby
increasing production; thus increasing employment; finally boosting overall
competitiveness
Data Source: “Taiwan: Enhancing Opportunities for European Business”, Copenhagen Economics, August 2008