Economy

President Ma urges resumption of TIFA talks

ROC President Ma Ying-jeou emphasizes the importance of resuming TIFA talks with the U.S. May 23 in Taipei City. (CNA)

• Publication Date：05/24/2012
• Source： Taiwan Today
• By  Meg Chang

ROC President Ma Ying-jeou said May 23 that Taiwan needs to fast-track negotiation with the U.S. under the Trade and Investment Framework Agreement to avoid being economically marginalized in the Asia-Pacific region.

“The next four years will be a critical period for Taiwan,” Ma said. “We need to change our mindset and further embrace market liberalization as this is the only way of enhancing national competitiveness.”

The president made the remarks after being briefed by Yiin Chii-ming, minister of the Council for Economic Planning and Development, on planned policy initiatives and the state of Taiwan’s economy.

Taiwan has signed the Cross-Straits Economic Cooperation Framework Agreement (ECFA) and a trade investment and promotion arrangement with mainland China and Japan, respectively, Ma said. “These pacts represent the first steps in the country’s global economic strategy,” he added.

But the president lamented that there has been no progress in trade talks with Washington since 2007, citing issues surrounding U.S. beef imports as the cause of the delay.

“All parties need to put the matter in perspective and work toward bringing TIFA discussions back on track,” he said. “The issue has taken on greater significance now that the U.S.-South Korea free trade agreement is in effect.”

The FTA, which came into force March 15, eliminates tariffs on 80 percent of consumer and industrial trade between the U.S. and South Korea. Nearly 95 percent of bilateral shipments will be duty free within five years, with most remaining tariffs eliminated by 2022, according to the Office of the U.S. Trade Representative.

Ma believes that restarting TIFA talks will clear the way for Taiwan toward eventual membership of the Trans-Pacific Partnership and help secure the island’s sustainable development.

The TPP is a proposed trade agreement comprising negotiating partners Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam and the U.S. Three other nations, Japan, Mexico and South Korea, are also seeking to join discussions on the nascent pact.

On the domestic front, Ma said the CEPD has proposed several policies for tackling challenges such as unemployment, stagnant salaries and the widening wealth gap identified in his inauguration speech May 20.

The government will continue working to address these issues by transforming Taiwan’s economy and placing a premium on innovation and the promotion of nontraditional industries, he said. (JSM)

Write to Meg Chang at sfchang@mofa.mail.gov.tw