On the morning of February 17, President Ma Ying-jeou attended the opening ceremonies of a seminar on the nation's strategy for joining the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). He noted that over 20 of the ROC's overseas envoys have returned to Taiwan to attend the seminar and participate in the overall strategic planning associated with this initiative. The president said that the envoys will play a crucial role in enabling the international community to understand Taiwan's determination to promote trade liberalization, adding that this will help to expand Taiwan's presence in international economic and trade relations.
In remarks, President Ma stated that after Taiwan joined the World Trade Organization (WTO) in 2002, multilateral negotiations in the global trade body reached a stalemate and many of its member states subsequently turned to negotiation of bilateral or regional trade agreements, he said. The president pointed out that 384 free trade agreements are now in effect throughout the world. Due to its unique diplomatic situation, however, Taiwan for a number of years had not achieved any success in negotiations with its trade partners in the region, he said, but after he took office in 2008, his administration began to actively expand trade and economic relations with Taiwan's main trading partners. Besides the signing with mainland China, Taiwan's largest trading partner, of the Cross-Straits Economic Cooperation Framework Agreement (ECFA) in 2010, the following year Taiwan signed the Taiwan-Japan Bilateral Investment Arrangement with its second largest trading partner. In March of last year, he said, Taiwan and the United States, its third largest trading partner, resumed negotiations under the Trade and Investment Framework Agreement (TIFA), while in July of last year Taiwan signed the ANZTEC free trade agreement with New Zealand (its 40th largest trading partner), followed by the signing of the ASTEP free trade agreement with Singapore, its fifth largest trading partner, in November. All of these developments demonstrate Taiwan's determination to achieve trade liberalization, he noted, adding that this is also creating the conditions conducive to Taiwan joining the TPP and the RCEP.
President Ma stated that an APEC Leaders' Declaration has recognized the importance of the TPP and the RCEP in eventually achieving the ideal of a "Free Trade Area of the Asia-Pacific." He also noted that most of the members of the two proposed trade blocs are important trading partners of Taiwan. As an example, the president stated that Taiwan's trade with the 12 members of the TPP in 2012 accounted for 34.4% of its total external trade, while trade with the 16 members of the RCEP accounted for a 57% share. This, he said, highlights the urgent need for Taiwan to join in these two economic partnerships. The president commented that both of the trading blocs are equally important and Taiwan cannot neglect either one. He said that if in the future Taiwan cannot join these economic partnerships, it could be unable to compete on even terms with other countries in the Asia-Pacific region, which could cause Taiwan to face the threat of being marginalized.
As for the topic of trade and economic liberalization, President Ma stated, if Taiwan joins the TPP and the RCEP, there will be tradeoffs involved. In the course of negotiations, he said, there is going to be give-and-take, adding that Taiwan has to abide by the principles of equality and reciprocity.
President Ma emphasized that over the past five years, the government had amended 876 laws and regulations to ease restrictions. In the future, it will continue along this course to establish a regulatory environment that meets international standards at the earliest date possible. This, he said, will make foreign governments, as well as companies here and overseas, realize that we have made serious efforts to deregulate and open up our markets. In addition, the government in August of last year launched eight free economic pilot zones (FEPZs), including six seaports, one airport, and the Pingtung Agricultural Biotechnology Park, he said. The first-stage implementation plan for the FEPZs focuses on development in five key areas: smart logistics; the international health industry; value-added agriculture; financial services; and educational innovation, he remarked. The core philosophy of the FEPZs, the president said, is to further promote liberalization and internationalization in Taiwan, and to establish the pilot zones as a start toward instituting the "shop in front, factory at the rear " principle. This concept, noted the president, can gradually be expanded to all of our cities and counties, turning all of Taiwan into a free economic island.
President Ma mentioned that 10 years ago when he served as mayor of Taipei City, he was invited to visit Singapore by the World Economic Forum. At that time, he said, ASEAN was pursuing a "10 plus 3" trade agreement between the ten ASEAN countries and mainland China, Japan, and Korea. The president delivered an address there entitled "Why not 10 plus 4," urging nations in the region to allow Taiwan to participate in East Asian integration. After he took office, he pointed out, on June 29, 2010 Taiwan and mainland China signed the ECFA, which was major turning point for Taiwan's fortunes. Subsequently, he said, Taiwan negotiated and signed trade and economic agreements with Japan, New Zealand, and Singapore. This, he said, was a dividend brought about by the ECFA.
President Ma reiterated that the TPP and the RCEP are both extremely important for Taiwan, and that the government will pursue a dual-track approach to join them. He expressed hope that all of the envoys and the officials involved in economic affairs in attendance would take this opportunity to understand the public's determination and the government's plans to bolster the economy. The president also called upon the envoys in the audience to take into consideration the situation of their host countries and consult closely with people at home to formulate a roadmap. The president stressed that this was going to be a major undertaking, and expressed hope that the fact of his calling back diplomatic representatives from over 20 countries to discuss the matter would impress upon the international community that Taiwan is determined to join these trade groupings and expand its presence in international economic and trade relations.
The president then touched on the importance of the Cross-Strait Trade in Services Agreement and the Cross-Strait Trade in Goods Agreement. He said that the international community is taking Taiwan's willingness to pass these two agreements as an important barometer of Taiwan's determination to promote trade liberalization. President Ma noted that the Trade in Services Agreement the Legislative Yuan will discuss the substance of agreement and ratify it will do Taiwan more good than harm. He pointed out that Taiwan signed the agreement with mainland China on June 21 of last year and that the agreement was forwarded on September 17 to the Legislative Yuan for review. To date, 19 of 20 public hearings on the agreement have been held, with the final one slated for March 10, he said. As for the Trade in Goods Agreement, the president pointed out that by the end of this March the Chinese National Federation of Industries will have, on behalf of the Ministry of Economic Affairs, held 13 seminars to discuss this pact. Representatives from 38 industries and 91 trade unions and associations have been invited to participate. The president said the government hopes to first engage in consultations with industry and then report to the Legislative Yuan on the results. Even though the government cannot publicly disclose the details of the negotiations, he hopes that the Ministry of Economic Affairs, the Executive Yuan's Mainland Affairs Council, and the Council of Agriculture will explain to the public the basic direction of the negotiations.
President Ma remarked that it is not easy for Taiwan to find a path forward amidst today's intense global economic competition. But over the past six years, he stated, Taiwan has for the time being been able to break free of its former economic and trade isolation, and has begun to contact its major trading partners, the president added, noting that despite the diplomatic difficulties faced by Taiwan. While success is not guaranteed, he said, "we are gradually stepping out." With this in mind, he said, he hopes that the public will have faith that Taiwan's economy can withstand the challenges brought about by trade liberalization. In addition, President Ma mentioned, the government has appropriated NT$98.2 billion for the Program to Assist Industry Adjust to Trade Liberalization to provide assistance and services to industries, enterprises, and laborers impacted by trade liberalization, so they can make the necessary adjustments, and to provide financial relief for losses suffered as a result.
After completing his remarks, the president watched a mock economic and trade negotiation session, a training session held by the Executive Yuan to cultivate persons with acumen in this area. He stated that in the past Taiwan was on the sidelines when nations throughout the region were working on signing free trade agreements. He said it was only after he took office that the situation started to improve. While Taiwan is still facing tough challenges, he said, it now at least knows where to concentrate its efforts. The president noted that the government hopes to rapidly cultivate an ever greater number of individuals skilled in international negotiations and litigation, so as to achieve breakthroughs in economic and trade negotiations and enhance Taiwan's economic development.