Bureau of Foreign Trade, MOEA Mar.16, 2010.PPT

Bureau of Foreign Trade, MOEA Mar.16, 2010 Taiwan’s world ranking and share of exports and imports over this past decade ASEAN + China FTA 1 Jan. 2005, began implanting tariff reductions on goods. 1 Jan. 2010, zero tariff on most goods. ASEAN + South Korea FTA 1 July 2007, began implementing tariff reductions on goods. 1 July 2010, zero tariff on 90% of goods. Potential effects of future East Asia FTAs/RTAs II. Possible Effects of Signing ECFA Improve Macroeconomic Scale (1/2) Effects of signing ECFA: Macroeconomy (dynamic analysis) Gain Larger Savings Margin on Tariffs than China(1/2) Possible effects of tariffs (based on 2008 performance) (1/2) Currently: China sets no special limitation on Taiwan products; its average tariff on industrial goods is 9%. Taiwan’s exports to China (including Hong Kong) have reached US$100 billion (tariffs amount to US$9 billion) Taiwan maintains restrictions on 1,300 industrial and 834 agricultural goods with the average tariff on industrial goods at 4%. China’s exports to Taiwan are valued at US$35 billion (tariffs amount to US$1.4 billion) Gain Larger Savings Margin on Tariffs than China (2/2) Possible effects of tariffs (based on 2008) (2/2) If both sides eliminate tariffs after signing ECFA and exports for both sides grow by 20%, then: Create Taiwan’s Advantages in Services Trade In addition to trade in goods, ECFA can also provide numerous benefits to Taiwan’s services trade by helping foreign businesses invest in Taiwan as well as Taiwan businesses investing in China. In the Early Harvest List, Taiwan would like to request “market access” commitments from China in the financial and banking sectors for example, by reducing regulations on Taiwan banks setting up branches in China, restrictions on asset thresholds, and requirements for 3 consecutive years of profits. This will not only provide financial services to Taiwan businesses in China, but also help them resolve financial problems. Financially related dome