What is the importance of launching ECAs for Taiwan?
A. Expanding trade:
As export accounts for over 70% of the Gross Domestic Product (GDP) of Taiwan, international trade is essentially the lifeline of the economy of Taiwan. The neighboring countries of Taiwan (such as South Korea, Singapore, Japan, mainland China, and the ASEAN) are all actively seeking ECAs for mutual reduction of tariffs on goods. In order to foster a fair and favorable international trade environment to assist domestic businesses in expanding international market, the Government must promote as soon as possible the signing of ECAs with other countries.
B. Boosting investments:
ECAs allow for the effects of market opening and investment protection, which attract foreigners to invest in Taiwan. Over the recent years, foreign (such as the US) direct investments in Taiwan have seen a gradual decrease per year, resulting in adverse impacts on the sustainability of the economic development of Taiwan. The signing of cross-Strait Economic Cooperation Framework Agreement (ECFA) and of ECAs respectively with the major trading partners of Taiwan will foster favorable conditions for attracting foreign investments into Taiwan to develop Taiwan into a regional operations center.
C. Improving industrial competitiveness and stimulating economic growth:
With foreign investments being drawn to Taiwan by the signing of ECAs, an increased number of advanced technologies and abundant amount of capital are introduced to Taiwan for improvement of industrial competitiveness, stimulation of economic growth, and creation of more job opportunities.