Taiwan’s Way to the TPP/RCEP:
Policy and Plans
Howard Song
Senior Executive Officer (TPP Affairs) Multilateral Trade Division, BOFT
Ministry of Economic Affairs
August 26, 2016
CONTENTS
A. Major Regional Economic Integrations B. Taiwan’s Standing in the Region
C. Why Regional Economic Integration Matters to Taiwan
D. Challenges and the Opportunities E. The Decision-making Mechanism F. The Actions
G. Conclusion
2
NAFTA
（28%）
RCEP (31%)
CJKFTA
（23%）
Source：IMF, World Economic Outlook Databases (Apr. 2016)
（22%） EU TTIP
(47%)
(37%) TPP
The percentage of global GDP in parentheses China-Korea FTA
（17%）
A. Major Regional Economic Integrations
Global GDP in 2015: USD$73.17 trillion
3
2008 2013
Japan joined TPSEP
(P4)＊
2015
Oct. 5 concluded
2017
members’
ratifications, TPP enter into force
(estimated)
?
Open to new members TPP
launche d
2005
Nov. 5 Draft published
2016
Feb. 4 Agreement
signed
4
Timeline
A. Major Regional Economic Integrations
Features of the TPP agreement
5 Comprehensive
liberalization Cross-cutting
A living agreement New Trade
Challenges
All items are subject to negotiations. The results are presented in the schedules.
• Goods
• Services
• Government Procurement
• Competition policy,
• Labor
• State-owned enterprises,
• Environment
• E-commerce
• behind borders” issues (examples:
telecommunications, intellectual property, etc..
• Regulatory coherence
• SMEs
• Competitiveness and business facilitation
• development
• new issues and
• new members
A. Major Regional Economic Integrations
6 The RCEP includes 10 ASEAN member 6
states and ASEAN's 6 free trade agreement (FTA) partners. 6
+China
+Japan+New Zealand &
Australia
+India
+Korea
ASEAN (10 Countries)
Issues Covered
Trade in Goods Intellectual Property Trade in
Services Competition Policy
Investment Dispute
Settlement Economic and
Technical
Cooperation E-Commerce Other Issues
An Overview of the RCEP
Regional Comprehensive Economic Partnership (RCEP) negotiations were launched in May 2013 and the 14
thround was just held in August.
A. Major Regional Economic Integrations
7
10 FTAs
FTA preferential trade (%)
30
50 70 100 10
unleveled playing field
B. Taiwan’s Standing in the Region
Joining the TPP means increasing the percentage of preferential trade to almost 40% , including the US and Japan, 2 of Taiwan’s top 3 trading partners.
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(22.71%, 14)
(33.67%, 15)
(76.65%, 21)
(64.29%, 14)
(56.38%, 9) (9.74%,7)
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B. Taiwan’s Standing in the Region
The Strategy:
Dual Track Approach:
TPP/RCEP
WTO multilateral
and pluri- lateral initiatives Bilateral
FTA/ECA
Dual Track Approach:
TPP/RCEP Bilateral
FTA/ECA
Cross- Strait Relations
Stability
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RCEP
57.59%
Non-RCEP
42.41%
In 2015, Taiwan’s trade with RCEP members amounted to US$293.3 billion.
All participants in the RCEP are among Taiwan’s important trading partners.
C. Why Regional Economic Integration
Matters to Taiwan
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Taiwan’s trade ties with TPP countries are already close.
TPP
TPP36.91%
Non-TPP
63.09%
C. Why Regional Economic Integration Matters to Taiwan
Taiwan’s total trade with TPP countries in 2015 was USD$ 187.9 billion.
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• The accession requirement in Chapter 30 of the TPP is met.
• Taiwan has been a crucial, integral part of Asia-Pacific supply chains.
Opportunities
• Taiwan has only two FTAs with TPP members, three with RCEP members.
• Taiwan’s trade regime must be liberalized to the TPP level.
• Communication channels with some RCEP members still have to be established or strengthened.
• Differential treatments imposed on PRC.
• Taiwan has a unique international status.
Challenges
D. Challenges and the Opportunities
12
Decision
Coordination
Implementation
Strategic Panel on
International Economic and Trade
International Economic and Trade Working Group
Sub- working groups established by relevant ministries
Ad hoc TPP/RCEP Task Force
E. The Decision-Making Mechanism
Industry/
Academic Advisory
Group inquiries
advice
Aim to be included in the TPP promptly!
Update the impacts and national interests
analysis
Strengthen domestic
outreach efforts Review and reform the domestic
trading regime
Call for international support
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F. The Actions
Dual Track Approach
Domestic capacity
building
14
Review the domestic trade regime and propose law amendments and adjustment plans by the end of 2016.
Statute for Control of Cosmetic Hygiene Postal Act
Electronic Communications Act The Plant Variety and Plant Seed Act Patent Act
Agro-pesticides Management Act;
Pharmaceutical Affairs Act Copyright Act
Trademark Act
The Fisheries Act/ Statute for Distant Water Fishing/ Ordinance to Govern Investment in the Operation of Foreign Flag Fishing Vessels
Administrative Procedure Act
Review and Reform the Domestic
Trading Regime: The Regulatory “Gap Analysis”
Cooperation with business associations
Using APEC and various bilateral channels
Call for International Support
Maintain Advocacy
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MOEA delegations to TPP/RCEP members
Joint study with foreign think-tanks
More active, comprehensive Public
Opinions
collect convey
Government &
Decision-making mechanism TPPCPO
Platform
feedback review
Strengthening Domestic Communication
Setting up the TPPCPO
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Taiwan is a worthy partner for the international community,
and open, strong and clear support from TPP/RCEP members is crucial.
G. Conclusion
19
thlargest economy in the world
TPP and RCEP
The highly liberalized ANZTEC and
ASTEP
5th best investment environment
in the world
Protection
of IPR
Thank you.
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