RESTRICTED  
  
WT/TPR/G/448  
12 September 2023  
(23-6022) Page: 1/16 
Trade Policy Review Body   Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN , PENGHU , KINMEN AND MATSU 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex  3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by 
the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on the Separate Customs Territory 
of Taiwan, Penghu, Kinmen and Matsu . WT/TPR/G/448 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 2 - 
 
  Contents  
1   INTRODUCTION  ................................ ................................ ................................ ..........  3 
2   ECONOMIC AND TRADE ENVIRONMENT  ................................ ................................ ....... 4 
2.1   Economic Overview  ................................ ................................ ................................ .... 4 
2.2   Trends in Foreign Trade  ................................ ................................ ..............................  4 
2.3   Developments in Foreign Investment  ................................ ................................ ............  6 
3   ECONOMIC POLICY AND DEVELOPMENTS  ................................ ................................ .... 7 
3.1   General Development Pla n ................................ ................................ ..........................  7 
3.2   Trade and Investment Policy  ................................ ................................ .......................  8 
3.2.1   Trade Policy  ................................ ................................ ................................ ...........  8 
3.2.2   Investment Promotion Policy  ................................ ................................ ....................  8 
3.3   Industrial Innovation  ................................ ................................ ................................ .. 9 
3.3.1   Industrial Innovation Policies  ................................ ................................ ....................  9 
3.3.2   Achievements of Industrial Innovation Policies  ................................ ............................  9 
3.4   Digital Economy  ................................ ................................ ................................ ........  9 
3.5   Inclusive and Sustainable Development  ................................ ................................ ....... 10 
3.5.1   Responding to Climate Change  ................................ ................................ ................  10 
3.5.2   Inclusiveness: SMEs, Women, Labor, and Indigenous Peoples  ................................ ...... 10 
3.6   Multilateral and Regional Economic Cooperation  ................................ ............................  12 
3.6.1   Participating in WTO  ................................ ................................ ...............................  12 
3.6.2   Participating in APEC  ................................ ................................ ..............................  13 
3.6.3   Application for CPTPP membership  ................................ ................................ ...........  13 
3.6.4   Bilateral and Other Regional Economic Participation  ................................ ....................  13 
3.7   Regulatory Reform  ................................ ................................ ................................ .... 14 
3.7.1   Overall Progress  ................................ ................................ ................................ .... 14 
3.7.2   Promote Good Regulatory Practices  ................................ ................................ ..........  14 
3.7.3   Major Economic and Trade Legislative Reforms  ................................ ..........................  14 
3.8   Aid for Trade  ................................ ................................ ................................ ............  15 
4   CONCLUSION AND OUTLOOK  ................................ ................................ .....................  15 
 
 
  WT/TPR/G/448 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 3 - 
 
  1  INTRODUCTION  
1.1.  During the review period from 2018 to 2022, the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu demonstrated resilient economic performance and production, 
notwithstanding the challenges posed by the COVID -19 pandemic. Notably, there has been positive 
growth observed in each and every year in both gross national income  (GNI)  and overall trade. The 
aggregated growth rates of 16.18% in Real gross domestic product (GDP) and 46.65% in total trade 
can be attributed to the implementati on of timely and effective response measures. In the post -
pandemic era, the pursuit of economic growth will be guided by four pivotal goals: reducing the 
burden on citizens, stabilizing consumer prices, restructuring industry, and maintaining economic 
mome ntum to foster a sustainable economic development.  
1.2.  In terms of trade policy, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
is endeavoring to develop a diversified export market, with a focus on fostering balanced growth in 
internationa l trade. This objective is being pursued through various strategies, including the 
enhancement of trade relations with key partners. Moreover, concerted efforts are being devoted to 
advance the New Southbound Policy and expand markets in emerging regions, including Africa, 
Central and South America, and the Middle East.  
1.3.  In terms of industrial innovation, the Program for Promoting Six Core Strategic Industries, 
which is derived from the 5+2 Industrial Innovation Plan, has been implemented since 2020 to 
facilitate industry transitions and improvements. Furthermore, the Ministry of Digital Affairs was 
established in 2022 to formulate overall policy for digital development, foster cybersecurity 
protections, facilitate digital transformations across industries, a nd enhance digital resilience.  
1.4.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu recognizes climate 
change as a critical policy issue. Consequently, comprehensive policies addressing climate change 
were formulated during the review period with an aim to reach the target of net -zero emissions 
by 2050. It also actively engages in dialogues with other Members on environmental sustainability 
issues in international organizations such as the World Trade Organization (WTO) and the Asia -Pacific 
Economic Cooperation (APEC).  
1.5.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu places significant 
importance on fostering a balanced development of its domestic economy. In this regard, dedicated 
efforts were undertaken during the review per iod to facilitate inclusive economic growth that 
encompasses diverse businesses and ensures the protection of labor rights. The objective is to 
facilitate the participation and empowerment of small and medium -sized enterprises (SMEs), 
indigenous communitie s, and women, allowing them to effectively engage in economic activities and 
reap substantial benefits from economic growth.  
1.6.  A constant focus is placed on regulatory reform, whereby the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu activel y gathers suggestions from stakeholders across all sectors 
and coordinates inter -departmental consultations. These efforts seek to promote market openness, 
reduce unnecessary regulatory burdens, and cultivate a favorable investment climate. This proactive 
approach is geared towards bolstering global connectivity and igniting a renewed drive for economic 
development.  
1.7.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu supports the 
multilateral trade regime and actively participates in WTO nego tiations and other functions. To 
enhance regional economic cooperation, the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu continues to participate in APEC and has made a bid to join the Comprehensive and 
Progressive Agreement for Trans -Pacific Partnership (CPTPP) in 2021, avidly seeking support from 
CPTPP members to facilitate collective prosperity within the regional economy.  
1.8.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu is firmly committed to 
the principles of market economy and will continue its efforts in contributing to a free, open, fair and 
transparent global trading system by adhering to WTO norms and rules.  WT/TPR/G/448 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 4 - 
 
  2  ECONOMIC AND TRADE ENVIRONMENT  
2.1  Economic Overview  
2.1.  During the review period, the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu maintained positive economic growth, with real GDP growing 16.18% from TWD 18.64  trillion  
in 2018 to TWD 21.66  trillion  in 2022. Economic growth in 2021 reached 6.53%, higher than 
the 3.39% growth rate in the previous ye ar. The manufacturing sector also demonstrated impressive 
export performance, serving as a driving force for economic growth. Additionally, the gross fixed 
capital formation (GFCF) increased over 10% between 2021 and 2022 due to continuous capital 
injectio n from the technology industry and expansion of private sector investments in product 
development and applications, indicating that private investment plays an integral role in supporting 
economic growth.  
2.2.  In terms of the economic structure, the services se ctor remains the most important economic 
sector in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, accounting for 
approximately 60% of the GDP. The employment share of the service sector has also been gradually 
increasing, now accountin g for nearly 60% of the total employment population. The industrial sector 
showed a slight increase in its contribution to GDP, rising to nearly 40%. The employment share 
was approximately 35%. The agricultural sector, accounting for less than 2% and conti nuing to 
decline, also showed a downward trend in employment share, decreasing from 4.90% in 2018 
to 4.64% in 2022.  
Table  1: Key Economic Indicators, 2018 –2022  
Indicator  2018  2019  2020  2021  2022  
Gross domestic product (GDP)       
At current prices ( TWD million)  18,375,022  18,908,632  19,914,806  21,738,982  22,666,522  
Annual change (%)  2.18 2.90 5.32 9.16 4.27 
Distribution (%), excluding statistical 
discrepancy       
 Agricultural Sector (%)  1.69 1.68 1.58 1.43 1.41 
 Industrial Sector (%)  36.31  35.46  37.32  38.76  37.74  
 Service Sector (%)  62.00  62.86  61.10  59.81  60.85  
Chained (2016) dollars ( TWD million)  18,642,014  19,213,196  19,863,877  21,160,524  21,658,693  
Annual change (%)  2.79 3.06 3.39 6.53 2.35 
Gross national income (GNI) per capita (US D) 26,421  26,561  29,369  33,756  33,664  
Gross fixed capital formation (GFCF)       
At current prices ( TWD million)  4,001,128  4,526,606  4,817,276  5,676,424  6,271,686  
Annual change (%)  5.41 13.13  6.42 17.83  10.49  
Inflation rate (CPI change, %)  1.36 0.55 -0.23 1.97 2.95 
Employment (thousands of persons)  11,434  11,500  11,504  11,447  11,418  
 Agricultural Sector (%)  4.90 4.86 4.76 4.73 4.64 
 Industrial Sector (%)  35.71  35.58  35.43  35.45  35.40  
 Service Sector (%)  59.38  59.55  59.80  59.81  59.96  
Note:  Data has been updated based on the benchmark revision released on 26  May 2023.  
Source:  Directorate -General of Budget, Accounting and Statistics.  
2.2  Trends in Foreign Trade  
2.3.  During the review period, import and export trade in the Separ ate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu has continued to grow since 2019. Despite the impact of the COVID -19 
pandemic, the shift towards low -contact economic activities spurred global demand for information 
and communication technology (I CT) and network communication products. These types of 
industries drive its participation within the global supply chain. With effective pandemic mitigation 
measures, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has successfully 
susta ined momentum in economic production. This is evidenced by the sustained growth in imports 
and exports, which has facilitated continued economic expansion. Between 2018 and 2022, total 
trade experienced a remarkable growth of 46.65%, surging from US D 618.8  billion  to 
USD 907.5  billion.  WT/TPR/G/448 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 5 - 
 
  Table  2: Trade Statistics, 2018 –2022  
(Unit: US D 100 million ) 
Year  Total Trade  Growth 
Rate (%)  Total 
Exports  Growth 
Rate (%)  Total 
Imports  Growth 
Rate (%)  Trade 
Balance  
2018 6,187.99  8.05 3,340.07  5.87 2,847.92  10.73  492.2  
2019 6,148.09  -0.64 3,291.57  -1.45 2,856.51  0.30 435.1  
2020 6,312.74  2.68 3,451.26  4.85 2,861.48  0.17 589.8  
2021 8,283.29  31.22  4,463.71  29.34  3,819.58  33.48  644.1  
2022 9,074.51  9.55 4,794.42  7.41 4,280.10  12.06  514.3  
Source:  Customs Administration, Ministry of Finance.  
2.4.  Imports and exports for the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
are primarily concentrated in Asia, followed by North America and Europe. During the period under 
review, there was a slight dec rease in the proportion of trade with Asia. The share of exports 
decreased from 72.10% in 2018 to 68.95% in 2022, and imports decreased from 59.04% to 58.83%. 
Within the same period, exports to North America grew, the share of exports increased from 12.58%  
to 16.34%, while the share of imports decreased from 12.32% to 11.21%. Trade with Europe 
experienced similar changes as trade with Asia, with the share of exports decreasing from 9.36% 
to 8.57%, and that of imports decreasing from 12.14% to 11.92%. The tr ading partners of the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu consist mainly of: China ; ASEAN ; 
the United  States ; Japan ; the European  Union ; Hong Kong, China and the Republic of Korea, which 
collectively account for 82% of total trad e in 2022.  
2.5.  During the review period, the main export products were electrical machinery and equipment. 
The demand for ICT and electronic products experienced a significant upsurge as a consequence of 
the pandemic, leading to a substantial increase in the p roportion of total exports from 43.18% 
in 2018 to 51.45% in 2022. This trend held for exports of machinery and mechanical appliances, 
plastics and plastic articles, and mineral fuels, as well as optical instruments and accessories. 
Similarly, electrical ma chinery and equipment constituted the largest category of imported products, 
accounting for 26.43% in 2018 and rising to 29.83% in 2022. These are followed by imports of 
mineral fuels and machinery and mechanical appliances.  
Table  3: Key Export and Import Products of the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu, 2018 –2022  
(Unit: US D million, % of total trade value)  
Total Exports (Re -exports)  Total Imports (Re -imports)  
Product/  
Year  2018  2019  2020  2021  2022  Product/  
Year  2018  2019  2020  2021  2022  
Electrical 
machinery, 
equipment, 
and 
components  144,234   147,263  173,526  218,765  246,680  Electrical 
machinery, 
equipment, and 
components  75,272  79,517  92,794  120,335  127,659  
 
43.18   
44.74   
50.28   
49.01   
51.45   
26.43   
27.84   
32.43   
31.50   
29.83  
Machinery, 
mechanical 
appliances, 
and 
components  38,823   42,707  44,539  57,454  63,150  Mineral fuels  51,288  44,234  29,607  49,945  78,325  
 
11.62   
12.97   
12.91   
12.87   
13.17   
18.01   
15.49   
10.35   
13.08   
18.30  
Plastics and 
articles 
thereof  22,440  19,847  18,498  26,381  23,063  Machinery, 
mechanical 
appliances, and 
components  33,550  42,156  43,033  57,802  64,473  
 
6.72  
6.03  
5.36  
5.91  
4.81  
11.78   
14.76   
15.04   
15.13   
15.06  
Mineral fuels  13,816  12,903  6,202  10,234  17,573  Optical 
Instruments and 
Accessories  11,620  12,279  13,930  16,812  17,232  
 
4.14  
3.92  
1.80  
2.29  
3.67  
4.08  
4.30  
4.87  
4.40  
4.03 
Optical 
Instruments 
and 
Accessories  16,211   15,746  16,734  19,788  16,522  Iron and steel  9,585  7,974  7,140  12,777  10,968  
 
4.85  
4.78  
4.85  
4.43  
3.45  
3.37  
2.79  
2.50  
3.35  
2.56 
Vehicles 
other than 
railway or 
tramway 
rolling -stock  9,950   10,320  10,022  13,589  15,830  Vehicles other 
than railway or 
tramway 
rolling -stock  8,726  8,932  9,617  10,576  10,814  
 
2.98  
3.14  
2.90  
3.04  
3.30  
3.06  
3.13  
3.36  
2.77  
2.53 
Iron and 
steel 10,450   8,752  7,472  12,751  12,209  Organic 
chemicals  10,533  8,658  7,109  10,520  9,819  
3.13 2.66 2.17 2.86 2.55 3.70 3.03 2.48 2.75 2.29 
Organic 
chemicals  11,507   8,946  7,169  11,800  11,031  Plastics and 
articles thereof  7,650  7,267  7,614  9,503  9,118  
3.45 2.72 2.08 2.64 2.30 2.69 2.54 2.66 2.49 2.13 WT/TPR/G/448 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 6 - 
 
  Total Exports (Re -exports)  Total Imports (Re -imports)  
Articles of 
iron or steel  8,561   7,841  7,076  9,279  10,460  Miscellaneous 
chemical 
products  6,574  5,890  6,201  7,278  8,069  
 
2.56  
2.38  
2.05  
2.08  
2.18  
2.31  
2.06  
2.17  
1.91  
1.89 
Copper and 
articles 
thereof  5,003   4,349  4,110  5,385  4,943  Pharmaceuticals  3,867  4,258  4,406  5,282  7,304  
 
1.50  
1.32  
1.19  
1.21  
1.03  
1.36  
1.49  
1.54  
1.38  
1.71 
Source:  Customs Administration, Ministry of Finance.  
2.6.  In 2020, the services trade was impacted by the COVID -19 pandemic, leading to a decrease in 
volume. Border control measures greatly hindered trade in travel services. Nonetheless, as the 
pandemic was gradually brought u nder control, a subsequent rebound in services trade was 
observed in the years 2021 and 2022. Indeed, services exports exhibited a more rapid recovery 
compared to imports, primarily attributed to increased international freight rates and the resilient 
adaptability of the domestic maritime and air freight industries. Additionally, the transition from a 
services trade deficit to a surplus can also be partially attributed to a continuously narrowing deficit 
in travel services trade since 2020, owing to a subst antial decline in expenditure on travel services.  
Table  4: Services Trade in the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu, 2018 -2022  
(Unit: US D million ) 
Year  Services: credit (exports)  Services: debit (imports)  Balance on services  
2018  2019  2020  2021  2022  2018  2019  2020  2021  2022  2018  2019  2020  2021  2022  
Total 50,209  51,838  41,210  51,995  58,169  56,865  56,937  37,491  39,567  45,276  -6,656  -5,099  3,719  12,428  12,893  
Manufacturing  2,781  3,214  3,870  4,389  4,326  2,726  1,882  1,532  2,006  1,931  55 1,332  2,338  2,383  2,395  
Maintenance 
& Repair  1,530  1,389  1,346  978 1,165  924 922 749 893 1,250  606 467 597 85 -85 
Transport  10,951  10,522  11,023  19,754  21,586  12,450  11,816  9,681  9,575  10,082  -1,499  -1,294  1,342  10,179  11,504  
Travel  13,704  14,411  1,800  744 2,747  19,428  20,500  3,046  1,247  3,108  -5,724  -6,089  -1,246  -503 -361 
Other 
Services  21,243  22,302  23,171  26,130  28,345  21,337  21,817  22,483  25,846  28,905  -94 485 688 284 -560 
Source:  Central Bank (CBC).  
2.3  Developments in Foreign Investment  
2.7.  During the review period, both outbound and inbound investment of the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu was affected by changing global circumstances and 
the pandemic. Outbound investment dropped by 51.63% in 2019 compared to the previous year, 
however, it rose gradually year by year after that. In 2022, global economic uncertainties prompted 
businesses to adopt a more cautious approach towards outbound investment. On the other h and, 
while inbound investment experienced a decline during the pandemic, there was a significant 
increase of 75.73% in 2022 compared to the previous year, attributed to green energy investments.  
2.8.  During the review period, outbound and inbound investment wer e concentrated in electronic 
parts and components manufacturing, financial and insurance services, as well as wholesale and 
retail sectors. Outbound investment was mainly directed to China, ASEAN, and the United  States , 
while inbound investment originated primarily from the European  Union  and Japan.  
Table  5: International Investment Statistics, 2018–2022  
(Unit: US D million (% of change from previous year) ) 
Year 2018  2019  2020  2021  2022  
Outbound 
investment  Amount  22,792.29  11,024.24  17,711.59  18,462.31  15,009.04  
Change  9.46%  -51.63%  60.66%  4.24%  -18.70%  
Top Three 
Major 
Industries  Financial and 
Insurance 
Services (41%); 
Electronic Parts 
and Components 
Manufacturing 
(10%); Basic 
Metal Production 
(9%) Financial and 
Insurance 
Services (30%); 
Wholesale and 
Retail (14%); 
Electronic Parts 
and Components 
Manufacturing 
(12%)  Electronic Parts 
and Components 
Manufacturing 
(30%); Financial 
and Insurance 
Services (27%); 
Wholesale and 
Retail (13%)  Electronic Parts 
and Components 
Manufacturing 
(28%); Financial 
and Insurance 
Services (27%); 
Wholesale and 
Retail (19%)  Electronic Parts 
and Components 
Manufacturing 
(19%); Financial 
and Insurance 
Services (17%); 
Transportation 
and Warehousing 
(13%)  
Top Three 
Major 
Destinations  China (37%); 
US (9%); 
ASEAN  (8%) China (38%); 
ASEAN (22%); 
EU (6%) China (33%); 
US (24%); 
ASEAN (15%)  China (32%); 
ASEAN (31%); 
Japan (12%)  China (34%); 
ASEAN (32%); 
US (7%) WT/TPR/G/448 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 7 - 
 
  Year 2018  2019  2020  2021  2022  
Inbound  
investment  Amount  11,671.48  11,293.15  9,270.65  7,592.52  13,341.99  
Change  50.04%  -3.24%  -17.91%  -18.10%  75.73%  
Top Three 
Major 
Industries  Electronic Parts 
and Components 
Manufacturing 
(32%); Financial 
and Insurance 
Services (28%); 
Chemical and 
Fertilizer 
Manufacturing 
(13%)  Electronic Parts 
and Components 
Manufacturing 
(24%); Financial 
and Insurance 
Services (19%); 
Publishing, 
Audiovisual, and 
ICT (11%)  Financial and 
Insurance 
Services (30%); 
Professional, 
Scientific, and 
Technical 
Services (14%); 
Wholesale and 
Retail (12%)  Financial and 
Insurance 
Services (30%); 
Wholesale and 
Retail (12%); 
Real Estate (9%)  Financial and 
Insurance 
Services (42%); 
Wholesale and 
Retail (14%); 
Power and Gas 
Suppliers (14%)  
Top Three 
Major 
Sources  EU (52%); 
Japan  (13%); 
UK (5%) EU (31%); 
Japan  (11%); 
Australia (6%)  EU (39%); 
Japan  (10%); 
UK (7%) EU (18%); 
ASEAN (12%); 
Japan (10%)  EU (36%); 
Japan  (13%); 
Australia (9%)  
Note:  Amounts denote examined and approved investment.  
Source:  The Investment Commission, Ministry of Economic Affairs.  
3  ECONOMIC POLICY AND DEVELOPMENTS  
3.1  General Development Plan  
3.1.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu adopts the fundamental 
principles of innovation, strong employment, and equitable distribution, as the policy objective for 
economic development as part of its National Development Plan. E ach ministry implements key 
initiatives, including: (1)  to continue with the Forward -looking Infrastructure Development Program 
to spur momentum for economic growth; (2)  to optimize the investment environment and relax 
regulatory controls to attract greate r investment; (3)  to facilitate industry innovation and 
transformation, meeting local demands and strengthening the competitiveness of domestic 
industries; (4)  to develop the digital economy, in particular emerging global business models; and 
(5) to enhanc e regional economic integration and bridge domestic and foreign markets.  
3.2.  During the review period, the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu achieved significant success in policy implementation. Stable and positive economic growth  
averaging 3.61% was achieved despite the pandemic, and GNI per capita increased 27.41% from 
USD 26,421 to US D 33,664.  
3.3.  During the pandemic, the primary goals for overall economic development were pandemic 
control and stable economic growth. The government adopted timely border control measures, 
implemented smart pandemic control measures within communities, and also subdivided company 
operations to reduce physical contact. Economic growth was stabilized through both relief and 
stimulus measures, the positive results of which are as follows:  
• Relief measures included providing financial assistance and loan relief, employment support, 
tax assistance, reduced or deferred payment of utility bills, as well as for rent on state -owned 
properties. These me asures aim to support families, protect underprivileged groups, assist 
businesses, and safeguard industries, establishing comprehensive mechanisms to provide 
complete assistance to affected industries and persons. As of the end of 2022, more than 
TWD 330 billion in relief funds was distributed, providing assistance to around 15  million  
individuals and businesses.  
• The goal of stimulus measures was to expand the domestic market. In 2020 and then again 
in 2021, two rounds of stimulus vouchers and other support  measures were implemented to 
stimulate consumer spending. These measures have led to significant growth in the revenue 
of industries such as the food and beverage sector, retail industry, and wholesale and retail 
trade, indicating a certain level of suppo rt for domestic economic growth.  
3.4.  During the review period, the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu generally adopted a moderate expansionary fiscal policy, aiming to achieve a balance between 
revenue and expenditure. Both revenue and expenditure were increased s imultaneously, aligning 
with the goal of maintaining stable fiscal conditions. The exception was during the pandemic in 2020, 
when an aggressive expansionary fiscal policy was adopted to minimize the impact on the economy. WT/TPR/G/448 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 8 - 
 
  Furthermore, strict fiscal discip line was adhered to during the period under review, limiting public 
debt (including domestic and external debt) to about 30% of the GDP.  
3.5.  In terms of monetary policy, the currency exchange rates of the Separate Customs Territory 
of Taiwan, Penghu, Kinmen an d Matsu are in principle determined by market forces. Global 
inflationary pressures are causing many countries to adopt tightened monetary policy. However, due 
to supply -side measures implemented during the review period, domestic inflation remains relativ ely 
mild and manageable. Therefore, a more gradual and moderate approach to tightening monetary 
policy is being adopted.  
3.2  Trade and Investment Policy  
3.2.1   Trade Policy  
3.6.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu is an open economy 
relying heavily on foreign trade. Between 2018 and 2022, the trade dependency ratio rose 
from 101.57% to 118.99%. This indicates that foreign trade played a crucial role in driving economic 
growth, and economic development is closely linked to global economic fluc tuations. At present, 
foreign trade policy aims to promote balanced international growth and diversified export markets.  
3.7.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu maintains a stable and 
constructive bilateral economic relationship with its key trading partners. During the review period, 
its total bilateral trade grew significantly: 65.95% with the United  States , 47.09% with the 
European  Union, 31.79% with Japan, 60.07% with the Republic of Korea, and 36.48% with China.  
3.8.  Furthermore, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has 
further strengthened its engagement with the Asia -Pacific region, particularly through the 
implementation of the New Southbound Policy since 2016. Leveraging its strengths in healthcare , 
agriculture, tourism, technology, and culture, it has fostered deeper and more diverse exchanges 
with partner Members. Notably, total trade with the markets covered by the New Southbound Policy 
has witnessed a substantial growth of 54.48%, surging from U SD 116.7  billion  to US D 180.3  billion  
during the review period.  
3.9.  To expand into emerging markets such as Central and South America, Africa, and the 
Middle  East, the government has formulated strategic plans to explore business opportunities. The 
Overseas Cr edit Guarantee Fund offers financial support to facilitate the entry of businesses into 
these markets. As a result, its total trade with the emerging markets in Central and South America, 
Africa, and the Middle East grew substantially by 53.87%, 68.05%, an d 26.26% respectively.  
3.10.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu will continue to 
participate in regional economic integration, strengthen supply chain and technical cooperation with 
global partners to capitalize on new business op portunities in the post -pandemic era.  
3.2.2   Investment Promotion Policy  
3.11.  To foster an efficient and supportive investment environment, the Separate Customs Territory 
of Taiwan, Penghu, Kinmen and Matsu has continued to streamline registration requirements for 
foreign companies, enabling companies to fulfill documentation requirements after registering their 
branch or representative offices. Concurrently, the approval process for inbound investment has also 
been simplified, leading to reduced administrative costs f or investors.  
3.12.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has strategically 
focused on attracting inbound investment by positioning itself as a global supply chain hub and 
enhancing industrial development. A comprehensive set of inv estment promotion policies has been 
implemented, including favorable land rental rates, project loans, and an integrated single -window 
service platform to facilitate efficient and secure investment processes for interested enterprises. 
Between 2019 and 202 2, the total inbound investment exceeded US D 62 billion , creating 
over 140,000 job opportunities.  
3.13.  On the other hand, the government has intensified its efforts to attract investment from 
multinational corporations, with a focus on high -tech industries such  as critical materials and WT/TPR/G/448 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 9 - 
 
  equipment for the semiconductor sector, as well as renewable energy. Throughout the review period, 
several corporations from the United  States , the European  Union , as well as Asia, either made new 
investments or expanded their ex isting investments in those areas.  
3.14.  Moreover, the government has established a talent recruitment platform to assist investors 
in recruiting foreign talent and enhancing collaboration with universities to facilitate talent 
exchanges.  
3.15.  Regarding outbound inve stment, the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu proactively supports businesses exploring diverse emerging markets, aiming to mitigate 
the risks associated with over -concentration.  
3.3  Industrial Innovation  
3.3.1   Industrial Innovation Poli cies 
3.16.  To accelerate industry transformation and development, the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu is dedicated to building a new economic model that strives for 
sustainable development around its core principles of innovation, strong employment, and equitable 
distribution. The three major strategies  – working with local industries, supporting industries with 
domestic demand, and entering international markets  – will stimulate industry innovation and 
vitality. The 5+2 Industrial Innovation Plan was introduced in 2016 and covers intelligent machinery, 
the Asia Silicon Valley, green energy, biomedicine, defense and aerospace, new agriculture, and the 
circular economy. The Plan is instrumental in driving growth in the next -generation industries and 
injecting new momentum for economic growth.  
3.17.  On the basis of the 5+2 Industrial Innovation Plan, the government further initiated the 
Program for Promoting Six Core Strategic Industries in May  2020. The Program covers information 
and digital industries, the cybersecurity industry, the precision health industry, the green and 
renewable energy industry, the defense industry,  as well as strategic industries and strategic 
stockpile industries. AI and 5G related programs are also being promoted at the same time, allowing 
these industries to better seek opportunities for global supply chain restructuring during the 
post-pandemic era. Accompanying measures include the promotion of regulatory reforms in the 
financial, talent, and digital se ctors, strengthening talent cultivation and international exchanges, 
and providing financial support. Talent cultivation  includes establishing specialized research 
institutes or academies, strengthening on -the-job training and international exchanges, and 
attracting international talent. Financial support includes providing financing assistance and 
expanding funding channels.  
3.3.2   Achievements of Industrial Innovation Policies  
3.18.  The 5+2 Industrial Innovation Plan has so far made significant achievements. The promo tion 
of the Asia -Silicon Valley Plan has contributed to the growth of the Internet of Things (IoT) industry. 
The IoT industry 's output value was around TWD 1 trillion  in 2018 and doubled by 2022, with a 
global market share of 4.83%. The machinery industry and the biotechnology industry have both 
surpassed a market value of TWD 1 trillion . In the area of green energy technologies, investment in 
offshore wind power and solar power has also reached TWD 1 trillion . 
3.19.  In terms of new agriculture and the circular e conomy, as of the end of 2022, investment in 
smart agriculture exceeded TWD 2 billion . The aim is to continue developing innovative, 
energy -efficient, and sustainable agriculture practices that enhance the value of resource recycling. 
The government has al so facilitated alliances between industry sectors and public associations, 
committing to collectively improve resource utilization efficiency among businesses. As of the end 
of 2022, the recycling rate of industrial waste reached 81.4%, and the recycling i ndustry contributed 
more than TWD 77 billion  in value.  
3.4  Digital Economy  
3.20.  In response to trends in digital and technological transformations, the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu launched the nine -year Digital Nation and Innovative 
Economic Development Plan (DIGI+) in 2017. After four years of imple mentation, the DIGI+ was WT/TPR/G/448 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 10 - 
 
  subsequently upgraded to Smart Taiwan 2030. The goal is to enhance the value of the digital 
economy, increase the adoption of digital services, and improve the coverage of high -speed 
broadband services. Through the integration of g overnment resources and collective efforts from 
the private sector and industries, the government is creating an environment that accelerates digital 
innovation and economic development.  
3.21.  In the post -pandemic era, the Separate Customs Territory of Taiwan, P enghu, Kinmen and 
Matsu has embraced new digital and smart technologies, integrating digital payments to accelerate 
the economic recovery of industries such as retail, food and beverage, and tourism. Business 
opportunities in sectors such as healthcare and  information communication are increased through 
international research and development collaborations in digital technology.  
3.22.  Last but not the least, the Ministry of Digital Affairs was established in August  2022 to 
facilitate digital development of the telecommunication, information, cybersecurity, Internet and 
communication industries, as well as coordinate the overall planning of digital governance and 
infrastructure to develop the digital economy and accelerate digital transformatio n. 
3.5  Inclusive and Sustainable Development  
3.5.1   Responding to Climate Change  
3.23.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu announced in 
March  2022 the Pathway to Net -Zero Emissions in 2050, and in December  2022 the 12 Key 
Strategies, and then  promulgated the Climate Change Response Act in February  2023. This Act 
includes the 2050 net zero emission target, an equitable transition, plus a chapter on climate change 
adaptation.  
3.24.  The government is reducing its dependence on imported energy by expand ing the installation 
of renewable energy sources. The goal is to reduce energy import dependency to below 50% 
by 2050. By leveraging ICT advantages, the aim is to align industries with the global supply chain 
and green initiatives, thereby establishing low -carbon business models and green supply chains. In 
addition, through public dialogue, efforts are being made to enhance awareness of climate change 
and promote the adoption of low -carbon lifestyles. Activities to communicate with the public are 
being cond ucted to discuss the potential impacts of efforts toward net -zero emissions and the 
development of relevant supportive measures. The aim is to ensure that climate transition aligns 
with the principles of social equity.  
3.25.  To encourage the prioritization of gr een sustainability among businesses, investors, and 
consumers, and to promote support from the financial sector for green energy development, the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has been undertaking green 
finance initiatives since 2017. A series of action plans have been introduced since then. On 
September  2022, the Green Finance Action Plan 3.0 was released to enhance the quality and content 
of ESG information disclosures, strengthen  climate risk management of financial insti tutions, 
promote GHG emissions inventory disclosures, and establish a sustainable taxonomy.  
3.26.  A new plan to improve the overall competitiveness of SMEs was also adopted in October  2022 
to assist SMEs embrace new international opportunities in net -zero emissi ons. Actions have been 
taken to enhance carbon reduction capabilities, foster relevant talent, support the low -carbon 
transformation of the manufacturing and service industries, guide export -oriented SMEs to comply 
with international carbon footprint verif ication standards, expand domestic capabilities to verify 
carbon emissions, and provide support for low -carbon measures such as green and sustainable 
preferential loans.  
3.5.2   Inclusiveness: SMEs, Women, Labor, and Indigenous Peoples  
3.27.  The economic development obj ectives of the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu encompass not only the pursuit of sustainable growth but also the promotion of 
social inclusivity. In order to achieve balanced economic growth, it recognizes the significance of  
ensuring equitable access to resources and opportunities for all members of society. As a result, 
various initiatives have been implemented to facilitate the inclusive development of SMEs, women, 
labor, and indigenous peoples.  WT/TPR/G/448 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 11 - 
 
  SMEs  
 
3.28.  SMEs hold a prominent  position within the economy, contributing substantially to sales 
revenue, entrepreneurial activity, and employment opportunities. In terms of sales revenue, SMEs 
have achieved impressive results due to increased international trade and domestic investment . As 
the latest statistics indicate, in 2021 total sales revenues for SMEs reached TWD 26 trillion , 
accounting for over 50% of overall corporate sales. Of these revenues, nearly 90% came from the 
domestic market. At the same time, export volume showed a ye ar-on-year growth of 25%. In 2021, 
there were over 1.59  million  SMEs, accounting for over 98% of all businesses and marking a 
historical high. SMEs employed 9.2  million  people, accounting for approximately 80% of the total 
employed population.  
3.29.  The governme nt values the development of SMEs, and aims to enhance their competitiveness, 
foster new opportunities, and accelerate industry transitions and development to address the 
challenges posed by the digital economy, sustainable development, local innovation, a nd global 
challenges in the post -pandemic era. By helping SMEs flourish, grow, and conduct international 
exchanges, new opportunities for product marketing are made available, creating greater 
momentum for economic growth.  
Women  
 
3.30.  In the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, there are 
about  600,000 women -owned SMEs, representing more than 37% of all SMEs. To enhance 
competitiveness, the government has been providing credit guarantee measures and strengthening 
entrepreneuri al development support systems. Since the Women Entrepreneurship Program began 
in 2013, it has supported a total of more than 10,000 female entrepreneurs to start new businesses. 
Due to recent developments in the digital economy, the program has also been providing assistance 
and support to female entrepreneurs in enhancing their digital skills and offering courses on utilizing 
digital marketing tools.  
3.31.  Since women make significant contributions to driving economic growth, the Separate 
Customs Territory of T aiwan, Penghu, Kinmen and Matsu has been actively implementing policies 
aimed at promoting gender equality and removing gender barriers in the workplace. To encourage 
greater female participation in economic activities, a range of measures have been implem ented to 
create a supportive work environment. These measures include the establishment of childcare 
facilities, relaxation of rules to allow both parents to take unpaid parental leave simultaneously, as 
well as implementation of childcare subsidies and fl exible working hours.  
Labor 
 
3.32.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu recognizes that labor 
plays a crucial role in economic development. It is committed to promoting fundamental labor 
principles and rights. To strengthen the prot ection of workers ' rights and interests, several regulatory 
reforms have been implemented. These measures include the gradual reduction of total working 
hours, enhancements to occupational accident protections, safeguarding workers ' rights, and the 
establi shment of effective mechanisms for resolving labor disputes.  
3.33.  Consequently, the minimum wage has been steadily increasing during the review period. 
Since 2016, the minimum monthly wage has been raised for seven consecutive years to 
TWD 26,400, marking an in crease of almost 32%. The aim is to stimulate domestic consumption 
through wage growth. In response to the declining birth rate and aging population, efforts are made 
to encourage the middle -aged and the elderly to stay in or return to the workforce. Addit ionally, 
continuous assistance is provided to promote youth employment and enhance overall labor force 
participation.  
Indigenous Peoples  
 
3.34.  To facilitate the empowerment of indigenous peoples, the Indigenous Peoples ' Economic and 
Industrial Development 4 -Year Plan (2018 -2021) was implemented to bolster the development of 
indigenous agriculture, cultural creativity, and ecotourism. Additionally, there are future plans to 
promote collaboration between indigenous industries in fields such as sports, leisure, and  healthcare, 
etc. to expand the scope of industrial development.  WT/TPR/G/448 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 12 - 
 
  3.35.  During the review period, employment growth among the indigenous peoples grew by 
nearly  7%. The growth is especially significant in healthcare and social services. Additionally, the 
number of  indigenous businesses increased from around 3,000 to more than 18,000, showing a 
remarkable sixfold growth rate. These businesses are predominantly microenterprises.  
3.36.  In 2022, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu officially 
joined the Indigenous Peoples Economic and Trade Cooperation Arrangement (IPETCA), as a 
founding member alongside New  Zealand , Canada, and Australia. The government will continue to 
collaborate with other members to address indigenous economic empowerment is sues. 
3.6  Multilateral and Regional Economic Cooperation  
3.6.1   Participating in WTO  
3.37.  As a free and open economy, the prosperous development of the Separate Customs Territory 
of Taiwan, Penghu, Kinmen and Matsu is intricately connected to the effective functioning of an open 
and inclusive multilateral trading system. The WTO holds a pivotal role in providing continuous 
support and driving the global trading system, which bears significant importance for the Separate 
Customs Territory of Taiwan, Penghu, K inmen and Matsu. To improve the functioning of WTO bodies, 
it actively participates in the discussion on WTO reform, with the objective of enhancing all facets of 
WTO's functions to effectively address the challenges arising from the new trade landscape of  
the 21st century.  
3.38.  The government also actively engaged in the negotiations before and after the 
12th WTO Ministerial Conference (MC12). It supported the Ministerial Declaration on the Emergency 
Response to Food Insecurity and relevant resolutions to address global food security challenges. It 
is committed to ongoing participation and cooperation with all Members to promote global food 
security. It actively participated in related negotiations, aiming to establish resilience for future 
pandemics while ensuring protection for innovative research and development.  The ratification 
process for the WTO  Agreement  on Fisheries Subsidies has been set in motion. The Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu is actively engagin g in negotiations for the 
second phase of the Agreement, focusing on addressing subsidies related to overcapacity and 
overfishing, aiming at advancing sustainable development goals in the fisheries sector. Lastly, in 
order to support the continued growth o f digital trade and global digital economy development, the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu supports the extension of the 
moratorium on customs duties on electronic transmissions, and expects to reach a resolution for a 
perma nent moratorium to increase stability and predictability in digital trade and integrate global 
SMEs into international trade supply chains.  
3.39.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu is participating in 
various Joint Statement Initi atives (JSI). These initiatives include areas such as e -commerce, 
domestic regulation in services, investment facilitation, and micro, small, and medium -sized 
enterprises (MSMEs). It had actively participated in the  negotiations on services domestic  regula tion 
concluded in December 2021. The disciplines agreed upon by participating Members  aim to enhance 
transparency, predictability and efficiency of licensing and qualification procedures for service 
suppliers and operators. The Separate Customs Territory o f Taiwan, Penghu, Kinmen and Matsu 
continues to work with other Members to complete certification procedures. It is actively involved in 
relevant discussions in hopes of establishing global e -commerce rules that meet current 
development trends. It also joi ned negotiations on the Investment Facilitation for Development (IFD) 
initiative in 2021.  
3.40.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu actively participates 
in the informal working group on MSMEs. It  especially values the importance o f access to and 
transparency of trade information by partnering with the  International Trade Centre (ITC) to offer a 
seminar on promoting the Global Trade Helpdesk (GTH). The government is committed to helping 
its domestic SMEs to connect with global marke ts through these and other relevant efforts.  
3.41.  In terms of emerging issues in environmental sustainability, the Separate Customs Territory 
of Taiwan, Penghu, Kinmen and Matsu joined other WTO Members in launching the Trade and 
Environmental Sustainability St ructured Discussion (TESSD) initiative in November  2022. It will WT/TPR/G/448 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 13 - 
 
  continue to participate in discussions of the informal working group proposing concrete measures 
and suggestions for trade and environmental issues under the WTO framework.  
3.42.  The implementation  and compliance with the WTO agreements are important to the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu 's participation in the WTO. During the 
review period, it addressed trade disputes via the WTO dispute settlement mechanism, both as 
complainant or as third party. Additionally, it is actively participating in dispute settlement reform 
discussions by promoting the use of alternative dispute resolution mechanisms. It also closely 
engages in discussions to improve panel procedure to enhan ce a fully and well -functioning dispute 
settlement system that is accessible to all WTO  Members.  
3.6.2   Participating in APEC  
3.43.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu recognizes the 
significance of APEC as a vital economic forum for the Asia-Pacific region. Through active 
participation in APEC, it demonstrates support for the multilateral trading system, regional economic 
development, and the advancement of key initiatives such as the Free Trade Area of the Asia -Pacific 
(FTAAP) and the AP EC Putrajaya Vision 2040. Collaborative efforts with other economies within APEC 
aim to propose measures that promote digitalization, inclusiveness, sustainability, and trade and 
investment. The ultimate goal is to foster a free, open, and rules -based trad ing environment in the 
Asia-Pacific region.  
3.44.  In response to post -pandemic recovery and sustainable development, the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu, as a reliable global supply chain partner, is 
committed to adopting open and  equitable trade measures and good regulatory practices to foster 
structural reforms and strengthen collaborations in trade facilitation with other APEC economies. 
Various initiatives have been put forward in areas such as the digital economy, talent devel opment, 
inclusive trade, public health and medicine, MSMEs, female empowerment, food security, renewable 
energy, indigenous rights, and sustainable oceans. These proposals aim to support the objectives of 
the APEC, promoting inclusivity and sustainable gro wth.  
3.6.3   Application for CPTPP membership  
3.45.  Recognizing the significance of accession to the CPTPP, the Separate Customs Territory 
of Taiwan, Penghu, Kinmen and Matsu has placed great importance on this endeavor. In 
September  2021, a formal request for accessio n to the CPTPP was submitted to the depositary 
country, New  Zealand , and diligent preparations are currently underway to pursue accession. During 
the review period, it completed all necessary legislative amendments to meet the high standards of 
the CPTPP.   
3.6.4   Bilateral and Other Regional Economic Participation  
3.46.  As of the end of 2022, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
had concluded free trade agreements (FTAs) and economic cooperation agreements (ECAs) with 
11 trade partners. In June 2022, the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu and the United  States  jointly announced the U.S. -Taiwan Initiative on 21st-Century Trade, 
aiming to build a sound regulatory framework to enhance mutual trade relations based on shared 
common values. The first agreement was signed in June  2023. At present, it has also entered into 
32 bilateral investment agreements (BIAs) with various trading partners.  
3.47.  In order to adapt to the evolving international political and economic  dynamics and enhance 
its global trade and economic strategies, the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu takes proactive measures to facilitate domestic industries in engaging with key trading 
partners. This is achieved through th e establishment of regular bilateral dialogue platforms, which 
serve as vital mechanisms to deepen trade and investment relationships. It also aims to foster 
consensus on industrial and economic cooperation, while collectively advancing bilateral 
relations hips. 
3.48.  In terms of regional economic engagement, the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu, along with the United  States , Canada, Japan, the Republic of Korea, 
Singapore, and the Philippines, jointly issued the Global Cross -Border P rivacy Rules (CBPR) WT/TPR/G/448 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 14 - 
 
  Declaration in April  2022 and announced the establishment of the Global CBPR Forum. As a founding 
member, the government will continue to promote the CBPR system, assist stakeholders to 
strengthen privacy protection and enhance exchange  and cooperation with other members on 
information privacy issues, and support data transfers and protection across borders.  
3.7  Regulatory Reform  
3.7.1   Overall Progress  
3.49.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has made continued 
efforts to  deregulate and improve economic and investment freedoms, resulting in notable 
advancements. In February  2023, the U.S. Heritage Foundation released the 2023 Index of 
Economic Freedom, and ranked the Separate Customs Territory of Taiwan, Penghu, Kinmen and  
Matsu the 4th highest out of 184 global economies and the 2nd in the Asia -Pacific region, marking 
its best performance to date. Significant improvements  were observed in key index factors such as 
fiscal health, government integrity, property rights, and j udicial effectiveness, reflecting substantial 
progress.  
3.7.2   Promote Good Regulatory Practices  
3.50.  To enhance regulatory transparency and public consultation, the Separate Customs Territory 
of Taiwan, Penghu, Kinmen and Matsu has extended the public notice period f or draft laws and 
regulations related to trade, investment, and intellectual property rights to  60 days since 
October  2016. Since 2017, draft laws are required to be published online at Join.gov.tw to allow for 
public input. Amendments to the Directions fo r Implementing Online Participation in Public Policy 
were made in April  2018 to ensure that the competent authorities respond to public opinions in a 
timely and appropriate manner.  
3.51.  To ensure the effective implementation of good regulatory practices, the Se parate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu adopts a proactive approach in reviewing the current 
legal and regulatory framework. In response to the valuable input from domestic and foreign 
chambers of commerce, coordination meetings are or ganized to foster comprehensive 
communication among stakeholders. These meetings serve as a platform for consensus -building, 
with the aim of adjusting laws and regulations in a manner that aligns with the identified needs and 
priorities of various stakehol ders. 
3.52.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu is dedicated to legal 
reforms to reduce regulatory burdens and create a business -friendly environment. One notable 
initiative is the Startup Regulatory Adjustment Platform, which allo ws entrepreneurs to access 
information on regulations and provide feedback. This platform facilitates effective communication 
between businesses and the authorities, thus reducing compliance costs for startups.  
3.7.3   Major Economic and Trade Legislative Reforms  
3.53.  In 2018, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu promulgated 
both the Financial Technology Development and Innovative Experimentation Act and the Unmanned 
Vehicles Technology Innovative Experimentation Act to ensure advancement a nd safety of startup 
technologies. Amendments were also made to relax regulatory control of the Company Act, with key 
changes aimed at  enhancing the fundraising capabilities of startups, fostering talent retention, 
improving the efficiency and effectivenes s of corporate governance, and diversifying profit 
distribution mechanisms. In 2021, amendments were made to the Act Governing Electronic Payment 
Institutions to integrate the two supervisory systems for electronic payments and electronic stored 
value card s. The Act for the Recruitment and Employment of Foreign Professionals and the Company 
Act were also amended to provide more favorable working and residency conditions, as well as 
encourage businesses to digitalize operations and streamline international b usinesses procedures. 
In 2023, the Act Governing Electronic Payment Institutions was amended again to enhance 
supervision of the financial health and debt -repayment capacity of electronic payment institutions.  
3.54.  In 2022, the Copyright Act, the Patent Act, and the Trademark Act were amended to enhance 
IP protection. Amendments to the Copyright Act stipulate that acts that constitute serious 
infringement, including but not limited to certain instances of illegal digital pi racy, are considered WT/TPR/G/448 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 15 - 
 
  offenses indictable without complaint. Amendments to the Trademark Act introduced criminal 
provisions for counterfeiting labels of trademarks or collective trademarks, aiming to strengthen the 
protection of rights holders. The amendmen t to the Patent Act provides a legal basis whereby patent 
holders of a new drug may initiate legal proceedings against generic drug manufacturers in 
accordance with the patent linkage system established under the Pharmaceutical Affairs Act.  
3.8  Aid for Trade  
3.55.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu actively engages in 
Aid for Trade initiatives, collaborating with other partner Members to address global development 
challenges. Leveraging its technological capabilities to support sustain able development, efforts are 
being made through bilateral and multilateral aid and technical assistance programs. These 
endeavors are aimed at making a significant contribution to the international community.  
3.56.  Bilateral cooperation through trade assistanc e programs aims to help partner Members  
improve  resource utilization efficiency, production technologies, industrial productivity, and trade 
capacity, as well as increase the economic capabilities of SMEs led by women and youth. The ultimate 
goal is to enable partner Members  to achieve fair and rule -based international trade. This cooperation 
encompasses four key operation aspects: (i)  supporting trade -related infrastructure, (ii)  providing 
technical assistance, (iii)  providing lending and investment assistance, and (iv)  fostering capacity 
building.  
3.57.  Moreover, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu actively 
engages in official development assistance (ODA)  through its participation in multilateral aid 
programs. Cooperation includes three approaches: (i)  donations to internationa l organizations or 
institutions, (ii)  the establishment of special funds to cooperate with international institutions 
(including the creation of APEC sub -funds for Human Security and Women and the Economy, as well 
as donating to APEC sub -funds for Digital Innovation, Micro, Small and Medium Enterprises, and 
Marine Debris Management and Innovation), and (iii)  cooperating with international institutions 
(such as the U.S.  International Development Finance Corporation (DFC), European Bank for 
Reconstruction and  Development (ERBD), and Central American Bank for Economic Integration 
(CABEI)).  
4  CONCLUSION AND OUTLOOK  
4.1.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu demonstrated resilience 
during the COVID -19 pandemic, successfully maintaining robus t and positive economic growth 
throughout the review period. Despite the challenges posed by the pandemic, this sustained growth 
instills confidence to navigate the challenges of the post -pandemic era and fosters an optimistic 
outlook for future economic d evelopment.  
4.2.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu firmly believes in the 
role of free trade in driving global economic growth and remains committed to supporting the 
development of the multilateral trading system under the WTO.  In line with this commitment, it will 
uphold the fundamental principles and values of the WTO and actively engage in multilateral and 
plurilateral initiatives within the WTO framework. Constructive feedback will be provided for the 
formation of new rules on emerging and substantive issues. Furthermore, through collaborative 
efforts with other WTO Members, it aims to promote WTO reform and enhance the effectiveness of 
the multilateral trading system to address the evolving demands of global trade.  
4.3.  The Separ ate Customs Territory of Taiwan, Penghu, Kinmen and Matsu upholds the principles 
and norms of the WTO in formulating domestic economic and trade policies. It is committed to 
undertaking legal reforms to enhance policy transparency, efficiency, and market o penness by 
eliminating trade barriers. Furthermore, it recognizes the importance of incorporating inclusive and 
environmentally sustainable perspectives into economic and trade policies. Through these efforts, it 
aims to demonstrate responsible engagement as a WTO Member and contribute to free trade, 
inclusive growth, and environmental sustainability.  WT/TPR/G/448 • Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu  
 
- 16 - 
 
  4.4.  Moving forward, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu remains 
committed to the ongoing pursuit of liberalization and development,  while actively engaging with 
other WTO Members to initiate necessary reforms that strengthen the multilateral trading system. 
Furthermore, it firmly upholds the principles of a market economy, adheres to the WTO standards, 
and endeavors to play a role in preserving an open, free, equitable, and transparent global trade 
system.  
__________