President Chen Shui-bian this morning attended a "Launching ceremony marking the export of fine quality Taiwan papaya and farm products to Japan" at the Council of Agriculture. After delivering a speech, the president accepted a papaya of the finest quality and a copy of an export order from the farmers. He also tasted the fruits on display and expressed his support to the farmers.
The president's speech is as follows:
I am delighted and honored to be invited to this "Launching ceremony marking the export of fine quality Taiwan papaya and farm products to Japan." During these past two years, Taiwan's rice and papaya have finally gone through strict quarantine and quality inspections given by the Japanese authorities for exportation to Japan, following the footsteps of the "Irwin mangoes" and orchids that are already highly appreciated by Japanese consumers.
This is absolutely an occasion worthy of celebration. It is well known that the Japanese market acceptance is a very important quality guideline. It proves that Taiwan's agricultural products have reached a world standard in terms of quality, taste and all levels of sanitary and safety standards. Taiwan's agricultural products entering the Japanese market also means that we have the capability to sell our products to any other countries in the world.
Following the structural readjustment of the production industry and the impact that we must bear for opening our local markets to imports in the wake of Taiwan's admission to the World Trade Organization (WTO), we have to make changes and upgrade our agriculture. We must discontinue the previous practice of focusing just on domestic sales until now and give equal emphasis on domestic sales and exports, actively opening a bigger market for farm and fishing products and enabling farmers and fishermen to make bigger profits and gains.
In order to boost the sale of Taiwan's agricultural products in the international market, the government has planned since last year to invest NT$2.253 billion in a three-year program to establish a new image and recognition for Taiwan farm products and expand its sales network. With the cooperation of all parties concerned, initial success has been achieved. In 2004, Taiwan's farm exports totaled US$3.518 billion, rising close to 10% from the previous year's amount. A-bian believes that under this promotional program, the farm export amount for this year will most definitely surpass last, bringing more foreign exchange and profits to the farmers and fishermen.
China has recently announced that it would lift import tariffs on some fruits imported from Taiwan. This announcement has made the exportation of Taiwan fruits to China a hot topic. But as a matter of fact, most of the discussions were not based on economic or agricultural considerations. Rather, they were just political talks.
According to statistics from the Council of Agriculture, Taiwan's fruit exports to China last year totaled only US$890,000. If Hong Kong were also included, the figure would be US$7.54 million, which represented 1.78 percent of Taiwan's total fruit production value. In quantity, there were only 629 tons of fruits exported to China. Adding Hong Kong to it, the figure would total 16,000 tons, which is 0.6 percent of the island's total fruit production.
Price-wise, (based on average export price per kilogram), in mango exports it was US$3.97 to Japan, US$0.72 to China. In pineapple export, it was US$0.7 to Singapore and US$0.39 to China. In butterfly orchid export, the difference was even bigger as the export price for the U.S. market was US$16.24 and that for China was just US$2.45. All elements considered, Taiwan's agricultural export market in China is rather limited and has little room for expansion.
However, due to the Chinese government's propaganda drive and the response from certain politicians in Taiwan who insist on exaggerating the potential of the Chinese market, the efforts that the government has made and the upgrading of the products' quality might run into trouble. However, there must be a way out for Taiwan's agricultural products. Therefore, we must direct all our resources in promoting four "highs," which are producing high quality, high value added, high price and high revenue products. Only through these means will the agricultural resources be used in the most efficient way. Increasing mid-low price exports is not a long-term solution for Taiwan's agriculture.
As a serious issue that has great bearing on the interest of the farmers and fishermen and could produce a grave impact on the nation's agricultural development, no responsible government would treat it lightly but would instead introduce comprehensive measures to protect their interest.
Premier Frank Hsieh made a very clear and firm statement regarding the fruit exportation issue at a dinner banquet with Taiwanese businesspeople in China a few days ago. I am not only totally supportive of the measures, I will also instruct concerned agencies to execute them word for word.
In short, the government's basic attitude is "one principle, three arrangements." The principle is that the government will use all its power to promote Taiwan's agricultural products. As for export to China, it is only a part of Taiwan's exportation to the world. Regarding the three arrangements, they are explained as follows:
First, appointing the Taiwan External Trade Development Council as the window to incorporate the export of all agricultural products. The farmers’ associations will provide the goods, and the Taiwan External Trade Development Council will be responsible to sell them to the international market, including the Chinese market.
Secondly, regarding official procedures such as tariffs, quarantine, inspection and customs clearance, the Mainland Affairs Council and the Council of Agriculture will help form a negotiation team, which may ask the TETDC for help in arranging negotiation meetings.
Thirdly, in order to assure the high-priced fruit's quality and transportation efficiency, the government is going to work out a plan to start negotiations as soon as possible for the introduction of air cargo flights, which will be non-stop, direct and originating from both directions.
Some people might have the perception that the Taiwan External Trade Development Council was established solely for the promotion of selling high-tech products such as computers. But even in its initial period, promotion of agricultural products was one of its missions. I am confident that the Taiwan External Trade Development Council will be able to promote Taiwan's agricultural goods with its most advanced international marketing strategy and retain the name of "Kingdom of Fruits" that the country used to boast in the past. At the same time, it will also feed back to our farming friends with handsome returns.
Though Taiwan's agricultural goods are highly appreciated by foreign consumers, it still needs the support from all the people in the country. The government is currently designating the moth orchid, Taiwan tilapia, oolong tea and mango as flagship products and is promoting them actively. I hope that all of you can buy some. I would like to congratulate you once again on the export of Taiwan papaya to Japan, and I hope that farmers will keep going strong so that more foreign consumers might have the chance to enjoy our country's fine quality fruits. Finally, thank you again. I wish you health and luck.