WORLD TRADE  
ORGANIZATION  WT/TPR/M/232 
30 July 2010 
 (10-4062) 
Trade Policy Review Body 
5 and 7 July 2010  
 
 
 
TRADE POLICY REVIEW 
 
SEPARATE CUSTOMS TERRITORY OF TAIWAN,  
PENGHU, KINMEN AND MATSU 
(CHINESE TAIPEI) 
 
Record of the Meeting  
 
Chairperson:  H.E. Mr. Bozkurt Aran (Turkey) 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRES ENTATIVE OF CHINESE TAIPEI  4 
III. STATEMENT BY THE DISCUSSANT 7 IV. STATEMENTS BY MEMBERS 10 
V. REPLIES BY THE REPRESENTATIVE OF CHINESE TAIPEI AND ADDITIONAL 
 COMMENTS  35 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 43 
 
Note:   Advance written questions by WTO Members and the replies provided by Chinese Taipei are 
reproduced in document WT/TPR/M/232/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/232 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The second Trade Policy Review of the Separa te Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu (Chinese Taipei) was held on 5 and 7 July 2010.  The Chairperson 
H.E. Mr. Bozkurt Aran (Turkey) welcomed the delegation of Chinese Taipei, headed by Mr.  Sheng-
Chung LIN, Deputy Minister of Economic Affairs, and the discussant, Mr. John Clarke (European 
Union).   
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by Chinese Taipei was contained in document 
WT/TPR/G/232 and that of the WTO Secretariat in WT/TPR/S/232. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegation of Chinese Taipei:  India;  Australia;  New 
Zealand;  Hong Kong, China;  Malaysia;  the United St ates;  Costa Rica;  Japan;  El Salvador;  Brazil;  
Argentina;  Turkey;  China;  Peru;  Chile;  Colomb ia;  Canada;  Thailand;  the European Union;  and 
Korea. 
4. The following delegations submitted written qu estions after the two-week deadline:  
Singapore and Guatemala.  
5. The Chairperson said that he had considered the reports prepared for the Review and he noted 
that an outward-oriented development strategy ha d brought rapid growth and prosperity to Chinese 
Taipei, transforming it into a modern industrial economy and a leading exporter of information 
technology products.  After recording a robust ec onomic growth averaging 4% between 2005 and 
2008, the Chinese Taipei's economy contracted by 1. 9% in 2009, as a result of the global financial 
crisis and associated sharp fall in exports.  With a view to addressing these negative external shocks, 
the Government had taken steps to promote domestic  demand, mainly by implementing expansionary 
monetary and fiscal policies, while resisting protectionism.  At the same time, it had taken steps to 
open further the domestic market to trade and invest ment, liberalizing, in particular, certain services 
subsectors.   
6. Both reports had made clear that Chinese Taipei had made progress in promoting trade 
liberalization at multilateral, regional and bilatera l level, as well as ensuring better protection of 
intellectual property rights.  According to the repor t by Chinese Taipei, several objectives and policies 
had been set to attract foreign investment a nd upgrade the international competitiveness of the 
economy.  He noted that Members would be interested  in learning more about the implications of the 
new scheme of production incentives, any further liberalization plans in trade in services and 
prospects for further reducing the role of the govern ment in the economy.  Members may also want to 
know more about Chinese Taipei's prospects for d eepening integration into the world economy upon 
improvement of cross-strait tr ade and investment relations. WT/TPR/M/232 
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  II. OPENING STATEMENT BY THE REPRES ENTATIVE OF CHINESE TAIPEI 
7. I cannot emphasize enough the importance that my  Government attaches to the Trade Policy 
Review process, which is a fundamentally importa nt activity running throughout the work of the 
WTO.  We are confident that this Review will pr ovide a good opportunity for Members to review our 
particular trade situation and policies, and for yo u to give us constructive feedback on any new or 
different directions that we might consider.  
8. Let me firstly share with you our economic perform ance over the last four years.  After steady 
GDP growths in 2006 and 2007, averaging 4% in real terms, our economy suffered a significant downturn, due initially to some serious hikes in the prices of crude oil and raw materials, and then to 
the global financial crisis.  As a result, our GDP  growth rate dropped to 0.7% in 2008, and then 
contracted further to -1.9% in 2009. Our foreign tr ade was hit hard by the global economic downturn 
as well.  Merchandise exports and imports plunged by  34.2% and 42.3% respectively in the first half 
of 2009. And, like many others, we have certainly felt the effects of the global financial crisis and 
economic downturn.  In response to such difficulti es, while continuing to support the overall policy of 
trade liberalization, my government introduced sever al measures aimed at shoring up the economy.  
Their main thrusts have been as follows.  
9. Firstly, an Economic Vitalization Package was introduced to stimulat e private investment, 
expand spending on public construction projects, ex tend financing for private business and stimulate 
consumption.  For example, the distribution of the consumption voucher to each and every citizen last 
year is estimated to have contributed approximate ly 0.28% to 0.43% to our economic performance in 
2009.  Secondly, there were efforts to improve the domestic investment environment through 
continuing deregulation and structure adjustment. Thir dly, actions were taken to ensure continued and 
gradual market opening and furt her regulatory reforms.  
10. Finally, we have also recognized the importanc e of market diversification, and therefore 
endeavoured to encourage our businesses to expl ore new market access opportunity abroad.  The 
government has drawn up a global market expansi on plan named the “New Cheng Ho Plan”. These 
are short-term, temporary measures which aim to  assist businesses in finding export opportunities 
particularly in the emerging markets.  
11. These initiatives have proved effective in contri buting to our economic growth. Such efforts 
have also been recognized by international renow ned institutions. In its latest Yearbook on World 
Competitiveness, the Swiss Institute for Management  and Development (IMD) now ranks us in the 8
th 
place in the world, a significant improvement on our ranking in the 23rd place in the previous year.  
Our economic performance has also helped us to ga in high rankings in two other highly-respected 
surveys this year, the World Economic Forum’s Global Competitive Index and the Business Environment Risk Intelligence Report, in te rms of “competitiveness” and “profitability on 
investment”. 
12. With the growing signs of recovery in the global economy, along with the policies and 
measures taken by the Government, our economy h as recovered relatively quickly since the final 
quarter of 2009.   In the Government’s latest  estimates, the 2010 GDP growth forecast has been 
revised upwards from 4.72% to 6.14%, with per ca pita income projected to reach US$18,414 this 
year.  Our external trade is expected to conti nue its strong recovery, w ith exports and imports 
increasing by 24.5% and 31.5%.   On the basi s of these positive trends and recognitions, my 
government is optimistic in its latest economic performance forecasts.  
13. Let me now turn to our major policy initiatives taken during the period under review.  For us, 
trade is of vital importance.  Our primary trad e policy objective is to continue with further 
liberalization under the multilateral trading system.   WT/TPR/M/232 
 Page 5 
 
 
  14. During the period under review, we have taken all necessary and possible measures to fulfil 
our accession commitments and to enhance our particip ation.  For example, on 15 of July 2009, we 
became the 41st party to the Agreement on Government Procur ement (GPA).  The fact that this action 
was taken during the economic downturn not only s hows our firm support to a more open and liberal 
trading system, but also demonstrates our effort to build up a transparent, efficient and competitive 
regulatory regime.  Furthermore, we believe that  opening up government procurement market will 
bring mutual benefits to both suppliers and products from GPA Members.         
15. We believe it is all Members’ responsibility to facilitate LDCs’ integration into the 
multilateral trading system and global economy. In th e last four years, we have provided duty free 
treatment for 149 items of import originated from LDCs Members with a view to enhancing trade 
relationship with these countries. We are pleased to  see the increasing trade value between LDCs and 
us. 
16. We have recognized that continued growth w ill require further domestic reform and extra 
efforts that aim at building up business-friendly environments.  Let me share with you on the 
following aspects as samples of our progress.  
17. With the objective of promoting industrial i nnovation, improving the industrial environment 
and enhancing industrial co mpetitiveness, we introduced the Statute for Industrial Innovation (SII), 
which has recently come into force.  At the same  time, corporate income tax has been reduced from 
20% to 17%.  These moves, coupled with an ongoing policy of deregulation, are designed to provide a 
fair, efficient, transparent, business-friendly and competitive environment, particularly conducive to 
new business start-ups. 
18. Moreover, as the service sector remains the largest contributor to our GDP, we have 
conducted regulatory reforms so as to improve competitiveness. Certain service sectors are receiving special attention to promote their future development.   Furthermore, we have learnt that the role we 
play in the global supply chains of certain sectors such as the ICT industries can be crucial to global 
trade and, therefore, we have concentrated on some of the emerging industries that are most likely to 
shape the patterns of our exte rnal trade in the future. 
19. Establishing a sound IP protection environmen t is an ongoing mission that allows no 
negligence.  In order to accommodate such chang es in a highly developed in ternational intellectual 
property environment, we have taken a series of s ubstantial amendments to laws and regulations.   
20. For example, amendments to the Patent Ac t and the Trademark Act are under legislative 
process and we have completed amendments to the Copyright Act to include new measures relating to 
P2P and liability for internet service providers, in or der to combat internet piracy.  In addition, an 
Inter-agency Coordination Taskforce for IP Enfo rcement has been established to combat IPR 
infringement and has received acknowledgement of  governments around the world and international 
agencies. 
21. My Government is a strong advocate of an early conclusion to the DDA negotiations.  
However, due to its delay, we recognize that in creasing significance has been attached to regional 
integration and bilateral preferential arrangement s by many Members. Witnessing such development, 
my government has to react to this trend properl y to create more opportunities.  We are therefore 
seeking deeper integration with our trading part ners in order to complement multilateral trade 
liberalization.  
22. As you are all aware, we have just signed on 29 June an Economic Cooperation Framework 
Agreement (ECFA) with China, who is both our la rgest trading partner and the destination for the 
largest portion of our overseas investment.  This Framework Agreement contains firstly an “early WT/TPR/M/232 
Page 6  
 
  harvest” programme covering some goods and servic es.  Secondly it mandates further negotiations on 
trade in goods, services, investment protection a nd dispute settlement to be launched within six 
months after the ECFA enters into force.  In a ddition to the above, an Agre ement on the Protection and 
Cooperation of Intellectual Property Rights also has been signed on the same day.    
23. In closing, let me assure you that the Separa te Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu is committed to assuming a greater role  in international econo mic cooperation, and to 
supporting the multilateral trading system as the f oundation for the sustainable development of a 
stable global economy.  Our strong support for an ea rly conclusion of the DDA negotiations remains, 
and we will continue to work closely with all of you in order to reach a mutually beneficial outcome as soon as possible.   WT/TPR/M/232 
 Page 7 
 
 
  III. STATEMENT BY THE DISCUSSANT (Mr. John Clarke (European Union)) 
24. It is a great pleasure to be the discussant for the second Trade Policy Review of Chinese 
Taipei – especially since this review coincides with a very significant development in the trade 
relations of Chinese Taipei.  I of course refer to th e agreement just concluded between Chinese Taipei 
and China: the Economic Cooperation Framework Agre ement (ECFA) that some  are describing as the 
most significant development in cross straits relati ons in 60 years. The path-breaking deals on trade 
liberalization and the protection of intellectual prop erty rights signed last week in China heralds a 
potentially profound new direction for that relati onship and for the region's trade and investment 
flows.  I believe I speak for everybody in this room  if I ask you to share more details on the objectives 
and coverage of this ag reement that certainly has a considerable impact on the whole region as well as 
other trading partners.  
25. In my remarks I will highlight a small number of trends in Chinese Taipei's trade policy that I 
think could be a focus for Members. Before doing so  though I would like to suggest that we approach 
this TPR exercise with two broad objectives in mind.  
26. First, this is an occasion both to look back at  Chinese Taipei's trade po licy in the last four 
years, but also to look forward, to see where Chin ese Taipei's trade policy is going to take them in 
future the challenges they face and whether th ey are able to meet those challenges.  
27. And secondly, the review gives us the opportunity  to give advice to Chinese Taipei where we 
think it could make improvements to its trade policy,  but also to draw advice from Chinese Taipei's 
successes: we should learn from su ccessful policies as much as Chin ese Taipei should learn from us. 
So I hope the dialogue and the experience can be useful in both directions.  
28. The Head of Delegation of Chinese Taipei ha ve already provided a comprehensive overview 
of the major developments in the economic polic y and trade of Chinese Taipei over the period of 
review. Therefore, let me turn to  some of the elements in the ec onomic and trade policies of Chinese 
Taipei that struck me the most when reading the reports and that I thought could contribute to our 
exercise of mutual learning and experience sharing he re today.  I want to focus on four things: the 
structural weaknesses exposed by the economic crisis ; privatization and regulation; investment;  and 
standards.  
29. First, a topic that has touched all of us - th e economic and financial crisis and the lessons 
learned from it.  As highlighted in the Secretariat's Report,  Chinese Taipei's growth is heavily 
dependent on exports, mostly of manufactures, representing 72% of GDP.  The recent global 
economic crisis therefore had an  adverse impact on this export-oriented economy. GDP growth 
plummeted in 2008 with sharp reductions in exports , private consumption, and investment. And the 
economy contracted by 1.9% in 2009.  
30. The good news is that the authorities refrained  from resorting to trade and investment 
protectionist measures in response to the crisis. Instead, they have implemented a mix of fiscal stimulus and monetary easing. In the short- a nd medium-term, the gradual rebound of external 
demand led mainly by Asia's emerging countries (p articularly China) and the effects of Chinese 
Taipei's economic stimulus package - should contribu te to its economic recovery.  This has indeed 
been the case - the economy started to recover in the latter part of 2009, and GDP growth is expected 
to resume during 2010.  
31. Nevertheless, the crisis has clearly revealed  some weaknesses in the economy and trade 
regime of Chinese Taipei. One of them is its  over-reliance on exports, as mentioned above, and 
arguably narrow export base and also the dependenc y on one single market (41% of exports go to 
China). There are surely obvious lessons to draw here about diversifying the export base as well as WT/TPR/M/232 
Page 8  
 
  diversifying export markets, and the risks of exce ssive dependence. I wonder whether Chinese Taipei 
could share with us the lessons it has learned from the economic crisis and how it plans to address some of these challenges?  
32. Turning now to the closely related issue of stru ctural reforms. In the short- and medium-term 
external demand has rebounded, and the economic stimulus package has contributed to economic 
recovery. But to have sustained growth over the long term will require structural reforms and a 
rebalancing in the composition of growth - fo cusing more on the domestic consumption and 
investment potential. Additional services liberali sation, removing unnecessary regulations and making 
doing business easier should also help.  
33. It does seem that, during the review period,  Chinese Taipei continued to pursue some 
structural reform so as to increase the competitiv eness of its economy. Chinese Taipei has made good 
progress in its regulatory reform programme, whic h allowed for deregulation in numerous areas 
including services, investment, and customs. Tax and financial reforms have remained important areas 
within the Government's development agenda.  
34. Privatization is another important area, but I have to say that the reform programme here 
seems to have lost momentum in recent years and in  fact has come to a virtual standstill.  Direct 
government involvement in the economy persists in a surprisingly large number of areas (e.g. 
shipbuilding, petroleum, steel, sugar, tobacco and liquor, banking, insurance, and rail transport) and 
statutory monopolies remain (notably in electricity, water supply, and postal services).  In addition, 
various forms of assistance, including subsidi es for production and consequently trade, have 
continued to be provided for agricultural, fisher ies, and industrial products and activities. Such 
policies and such a high level of state interventio n suggest a lot of unexploited potential in the 
economy and high costs for Chinese Taipei's consum ers and in the long run for its international 
competitiveness. 
35. Completing privatization plans, in tandem with  the implementation of competition-enhancing 
policies and regulatory reform, could help to co mpetitiveness in these sectors, and thus in the 
economy as a whole, while attracting higher investment fl ows. It would be interesting for all of us to 
hear the authorities' views about the planned con tinuation of the structural reforms as well as on the 
effects of government presence in the economy more generally? Is this really compatible with an 
economy of the level of sophistication of Chinese Taipei? 
36. My next point is on Chinese Taipei's investment policies and investment trends. The 
Secretariat report sheds interesting light on this. Fo r more than a decade, Ch inese Taipei has been a 
net investor abroad with outbound direct investment flows,  almost double the amount of inbound 
direct investment. The ratio of Chinese Taipei's in bound direct investment to GDP remains low by 
regional standards. Why is this?  The services sector  - the largest contributor to GDP and employment 
- has been gradually opened up and reformed so as to improve its competitiveness and market access.  
Commercial presence has been liberalized in financia l, environmental, health and tourism services, 
and regulatory improvements have been made in professional services and telecommunications, all of 
which could help attract inward direct investment.  However, informal barriers remain in certain sub-
sectors, and limits on non-Chinese Taipei investment and other restrictions apply in basic telecommunications, audiovisual services, and air and maritime transport. The Government retains a 
strategic position in banking and te lecommunications, while postal servi ces remain closed to private 
investment.  These prohibitions are implemented thro ugh a negative list or, in the case of investment 
from China, a positive list. Restrictions on cross-stra it trade and investment may have been a deterrent 
for potential investors wishing to use Chinese Taipei as an export h ub to China and other countries. 
37. Related to this is the business climate. Some of the rankings by the World Bank suggest that 
the business climate could really be improved.  Fo r example, in 2009, Chinese Taipei was ranked 61st  WT/TPR/M/232 
 Page 9 
 
 
  (out of 181 countries) for the overall ease of doing bu siness, 3 positions lower than in 2008.  For one 
of the world's biggest economies, these low ratings  are hard to comprehend. Similarly, Chinese 
Taipei's ranking dropped by 4 positions to 70th, in terms of protecting investors.  Therefore, what steps 
does Chinese Taipei plan to take more toward s business-friendly rules and more liberalised 
investment in order to fulfil one of its amb itions of becoming a regional operational centre?  
38. Finally, an issue that is both related to regulat ory transparency and to the objective of being 
increasingly integrated into the global economy – ar ea of standards. The large majority of Chinese 
Taipei's remain voluntary. In 2009, 18% of applied standards were aligned to international standards, 
down from 25% in 2005. This develo pment of standards appears to be an increasing obstacle for 
international trade as this drop in the share of in ternationally aligned standards in Chinese Taipei 
suggests that domestic standards are developed instead  of relying on internationally applied standards 
to the maximum extent possible. The potential to creat e real trade barriers is there. Turning one's back 
on international standards hardly see ms compatible with the desire of Chinese Taipei to integrate 
itself further into the international economy. As  a number of WTO Members have enquired though 
their advance written questions I would also like to  ask Chinese Taipei if it plans to streamline its 
standardisation activities and introduce more intern ationally aligned standards in order to achieve 
more transparency and better integration into global economy.  
39. There are certainly other important issues in th e trade policy of the Chinese Taipei such as its 
relatively complex tariff structure, the expanded sco pe of import bans, the decreased scope of export 
prohibitions, and some sectoral policies that I did not touch upon in detail but that will be certainly 
enquired about by the Members. As a Discussant I chose to take a more comprehensive view on the 
trade policy of Chinese Taipei, focussi ng on regulatory and transparency  aspects that are indicators of 
Chinese Taipei's present and future position in th e global economy and to sustained economic growth. 
It seems to me that, looking forwar d, Chinese Taipei is at something of a crossroads, faced with some 
important decisions regarding the direction it wants its trade and its economy to take, in terms of 
diversification, better regulation in terms of transp arency and efficiency, the role of the state, and 
attractiveness to investors and identifying sect ors where economy can remain competitive.  
40. It has been a great pleasure to act as a Discussant in the first day of this trade policy review 
and I thank you for this opportunity. However, with the Discussant's role also comes a certain responsibility of monitoring the quality of replies provided by Chinese Taipei to Members' advance 
questions and comments which I intend to fulfil in  my capacity as the Discussant. I expect and am 
quite confident that Chinese Taipei will address a nd clarify Members' concerns and remarks and thus 
bring value-added to our discussions. WT/TPR/M/232 
Page 10  
 
  IV. STATEMENTS BY MEMBERS 
INDIA 
 
41. Chinese Taipei’s economy despite its limited resources has emerged as an economic power 
house. In 2008, it ranked 18
th - both in exports and imports. Howeve r, as expected, its export driven 
economy could not insulate itself from the impact of global economic crisis and as a result its GDP 
contracted. There are signs that with mild recove ry in the world markets, Chinese Taipei’s economy 
should be able to reverse the trend. 
42. We have noted the signing of the Economic Cooperation Framework Ag reement between the 
Chinese Taipei and China on 29 June, aimed at gra dually reducing and removing trade and investment 
barriers and creating a fair environment.   
43. India’s trade with Chinese Taipei more than doubled since its previous TPR in 2006. The 
major items of India’s exports to Chinese Taipei in clude waste oil and naphtha, chemicals, iron and 
steel and of imports from there fuel oil, plastic and its products. The invest ment relations between 
India and Chinese Taipei companies have been showi ng healthy growth. It is estimated that over 100 
Chinese Taipei companies have presence in India w ith investments of over US$1 billion. We consider 
there is still untapped potential for further expansion of India-Chinese Taipei trade and investment 
ties. 
AUSTRALIA 
44. Australia has a strong bilateral trading relati onship with Chinese Taipei.  Chinese Taipei is 
our eight largest merchandise trading partner, and a substantial importer of Australian minerals and 
energy resources. 
45. We appreciate the efforts that Chinese Taipei has made since acceding to the WTO in 2002 to 
align its policies and practices to WTO requirements.   Australia notes, for in stance, the work Chinese 
Taipei has done to promote and enforce intellectual pr operty protection, in particular with respect to 
measures on internet piracy and illegal textbook copy ing.  Australia also appreciates the accession 
commitment made by Chinese Taipei not to claim any right granted under WTO Agreements to 
developing members.  We therefore are concerned that  Chinese Taipei in its report refers to itself as a 
developing member. 
46. We welcome Chinese Taipei’s participation in  and commitment to the multilateral trading 
system and support for conclusion of the Doha Round.  We were pleased to be able to join Chinese 
Taipei in supporting the recent statement issued by APEC Ministers Responsible for Trade in 
Sappore, Japan on 5-6 June 2010 calling for an amb itious, balanced and prompt conclusion to the 
WTO Doha Round. 
47. We welcome Chinese Taipei’s active role in the NAMA and services negotiations where, like 
Australia, it seeks market acces s opportunities to deliver a meaningful and balanced outcome. 
48. On services, Australia’s own experience has de monstrated that a comp etitive services sector 
is a vital component of sustaining and improving trade performance. 
49. Australia encourages Chinese Taipei towards grea ter efforts to liberalise its agriculture sector, 
where it seeks more gradual liberalization than in other sectors.  The WTO Secretariat Report notes that the agriculture sector is a major recipient of  government assistance, including border protection, 
through high tariffs, tariff-rate quotas and special saf eguards measures, and domestic support, despite 
its low contribution to GDP.  WT/TPR/M/232 
 Page 11 
 
 
  50. Australia welcomes the recent signing of th e Economic Cooperation Framework Agreement 
(ECFA) between Chinese Taipei and the People’s Republic of China.  We look forward to its 
notification. 
NEW ZEALAND 
51. Chinese Taipei is an important economic partne r for New Zealand – it is one of our top ten 
export markets.  Moreover, Chinese Taipei is a significant global trader – the world’s 12th largest 
exporter and importer of goods in 2008 – a particularly active participant in global trade, and a major 
beneficiary of the multilateral rules-based trading system under the WTO. 
52. We welcome, therefore, Chinese Taipei’s reaffirmation that it gives primacy to the WTO as 
the platform for trade liberalisation and is firmly  in support of a successful conclusion of the Doha 
Round negotiations.  This is clearly reflected in the references Chinese Taipei has made in its report to 
the need for the NAMA negotiations “to provide s ubstantial market access opportunities to deliver a 
meaningful and balanced outcome for all members”  and its statements regarding the value for the 
world economy of an “ambitious outcome” in servi ces.  We would hope to see a similarly ambitious 
liberalising contribution from Chinese Taipei across all three pillars of the market access negotiations. 
53. An area that particularly stands out in the Secretariat Report – against a background of 
continuing efforts to achieve trade and investment liberalisation and structural reform in other sectors – is the continued high protection Chinese Taipei acc ords its agricultural sector.  This remains the 
case despite the now “minor role” agriculture plays in Chinese Taipei’s economy – agriculture 
accounts for only 1.6% of GDP.  Over the course of this trade policy review, we look forward to hearing more from Chinese Taipei on measures it intends  to take to reduce these distortions in future, 
and how it plans to work towards achievement of its  stated aim of developing a “competitive, market-
oriented agricultural industry”. 
54. One such positive measure, was Ch inese Taipei’s decision to apply unilateral reductions in 
customs duties on certain products it deemed “basic necessities” including fuels and some foodstuffs, 
in response to rising commodity prices in 2008.  Give n the benefits this provided for Chinese Taipei’s 
consumers and processing industry alike, we encour age Chinese Taipei to explore reinstating and 
extending these reductions on a more permanent basis. 
55. The Secretariat Report observes that Chinese Taipei ’s tariffs structure remains quite complex, 
with non- ad valorem  rates continuing to “conceal relatively high tariff rates”.  Again, these mainly 
apply to agricultural items.  New Zealand would li ke to hear more from Chinese Taipei about its 
efforts to introduce greater tariff simplification (including use of more transparent, ad valorem  tariffs). 
56. We have also noted the reference in para. 38 of  the Chinese Taipei Report that it regards itself 
as a “developing member” in the WTO including for Doha Round purposes.  We find this difficult to reconcile with the commitment which Chinese Taipei ga ve in acceding to the WTO to the effect that it 
would not make use of developing co untry provisions in the WTO.  Chinese Taipei has income levels 
and other socioeconomic indicators similar to t hose of other developed economies, including New 
Zealand.  Chinese Taipei is a large and competitive exporter that will benefit substantially from the 
conclusion of the Doha Round.  We therefore l ook forward to Chinese Taipei making a contribution 
to the Doha Round that is commensurate with its sign ificant and growing weight in the global trading 
system. 
57. Together with Chinese Taipei’s rising income a nd technology levels, there has been a growth 
in the importance of the services sector in the Chinese Taipei economy.  We are pleased to note 
Chinese Taipei has continued its efforts to open up  and deregulate aspects of its services industries 
over the period under review. WT/TPR/M/232 
Page 12  
 
  58. Given the goal Chinese Taipei has set of furt her improving the international competitiveness 
of its services sector, we would encourage further scru tiny of remaining restrictions including in areas 
such as qualification and licensing requirements which serve to inhibit flexibility and efficiency of 
service provision. 
59. Progress which Chinese Taipei has made in the in tellectual property rights area is consistent 
with efforts to enhance international competitiven ess through promotion of further development of 
research and innovation. 
60. An important objective Chinese Taipei has id entified for pursuing further research and 
innovation is to develop towards “h igh value-added and environmentally  friendly products”.  In this 
regard, New Zealand welcomes Chinese Taipei’s ongoing engagement in work to promote and 
facilitate trade in environmental goods and services, in cluding in the APEC context.  We would also 
like to encourage a similar effort to maximise th e “mutual supportiveness of trade and environment” 
in Chinese Taipei’s approach to rules negotiations to put in place robust and effective disciplines in 
the area of fisheries subsidies, centred on a pr ohibition on subsidies which contribute to overfishing 
and overcapacity. 
61. Finally, we note the extensive work whic h Chinese Taipei continues to do on trade 
facilitation.  In particular, we understand it has worked to lower business transaction costs through 
increased coverage of an online FT Net system (aimed at streamlining procedures for import/export permits and other documents, such as certificates of origin and inspection).  There may be useful 
experience here that Chinese Taipei can share with other Members. 
62. New Zealand looks forward to further discussion of the issues we have raised above and in 
our earlier written questions, during the course of this review. 
HONG KONG, CHINA 
63. Hong Kong, China and Chinese Taipei maintain ve ry close trade relations.  In 2009, Chine 
Taipei was Hong Kong, China’s 4
th largest trading partner, 4th largest market for domestic exports, 6th 
largest market for re-exports, and 3rd largest source of imports.  The average annual growth rate in 
bilateral trade was 5% from 2004 to 2008.  While our bilateral trade decreased by 6.7% in 2009 due 
mainly to the global economic crisis, we have w itnessed a strong rebound in recent quarters, and are 
confident that the momentum of growth  in our bilateral trade will continue. 
64. In this connection we welcome the success ful conclusion of the Economic Cooperation 
Framework Agreement between Chinese Taipei and Ch ina.  This heralds an important new face for 
the development of their mutual trade and economic relations, one which Hong K ong, China is glad to 
witness.  Apart from enhancing trade in the econom ic relations between Chinese Taipei and China, 
the ECFA will facilitate economic growth in the region  as a whole, to the benefit of all participants. 
65. Like Hong Kong, China, Chinese Taipei is an  externally-oriented economy and has suffered 
from the pain caused by the economic downturn.  Yet, it has maintained the openness of its trade 
regime and resisted protectionism even after th e economic downturn had brought a sharp decline in 
demand in overseas markets.  Its efforts in keepi ng its market open are comme ndable and demonstrate 
what needs to be done to put world trade back on the right track of sustained growth amidst the 
uncertainties surrounding the global economic recovery. 
66. Turning to specific aspects of th e report, we are pleased to no te that Chinese Taipei has bound 
all its tariff lines, and the bound rates are the same as the applied rates in about 90% of the tariff lines.  
This imparts a high degree of predictability to Ch inese Taipei’s tariff regime.  Although the simple 
average MFN tariff rate remains unchanged at 7.8% si nce the last review, we appreciate that Chinese  WT/TPR/M/232 
 Page 13 
 
 
  Taipei has unilaterally reduced the tariffs on some 35 items.  That said, we would encourage Chinese 
Taipei to simplify its tariff structure which comprises ad valorem , specific and alternate duties. 
67. The Secretariat Report has noted that agriculture  enjoys a high level of protection in Chinese 
Taipei, including border measures as well as a vari ety of domestic support measures.  The average 
applied MFN tariff for agriculture products is 22.1% in 2009, which is much higher than the rate of 
5% for non-agricultural products.  We encourage Ch inese Taipei to step up its efforts in further 
liberalizing its agricultural sector and reduci ng related trade distorting support measures. 
68. As also noted in the Secretariat Report, servi ces made a substantial contribution to Chinese 
Taipei’s economy in terms of both GDP and empl oyment share.  We are supportive of Chinese 
Taipei’s continued effort to liberalize trade in services. 
69. We appreciate the improved commitments indicated  by Chinese Taipei in its revised offer in 
services.  However, the market access limitatio ns still scheduled for the committed sectors, 
particularly those in the infrastructural sectors such as financial services and telecommunications, 
continue to be a concern.  We encourage Chinese Taipei to further liberalize and undertake a larger 
extent of commitments in these infrastructural services so as to enhance their international 
competitiveness.  On the other hand, we commend Chin ese Taipei’s efforts in liberalizing its services 
market in the past five years in the areas of th e liberalization of commercial presence (mode 3) and 
improvement of regulatory regimes of various ser vices sectors.  We encourage Chinese Taipei to 
continue its efforts and take a further step to re flect these unilateral liberalizations into its future 
services offers so as to provide the legal certainty for service suppliers. 
70. On trade facilitation, we fully share the recogn ition given by Chinese Taipei on the benefits of 
trade facilitation measures in driving down transacti on costs and hence contributing to the expansion 
of international trade.  We commend their effort s in pursuing various trade facilitation initiatives in 
the negotiating group, and look forward to continui ng working closely with them in taking forward 
the negotiations. 
71. On standards and other technical requirements,  we note that Chinese Taipei has concluded a 
number of mutual recognition agreements with some Members and is committed to the full 
implementation of the Mutual Recognition Agreement (MRA) on Electro-Magnetic Compatibility.  It is also a signatory to the International Comm ittee of Weights and Measures Mutual Recognition 
Arrangement.  We welcome Chinese Taipei’s enga gement in these standard-setting activities and 
encourage its continued participation in the MRAs. 
MALAYSIA 
72. Chinese Taipei and Malaysia have always mainta ined strong trade relations where for 2009, 
Chinese Taipei was Malaysia’s 10
th largest trading partner, 13th largest export destination and 10th 
largest import source.  On the other hand, Malaysia was Chinese Taipei’s 12th largest trading partner; 
11th largest export destination and 10th largest import source.  Malaysia’s total exports to Chinese 
Taipei in 2009 amounted to approximately US$4.1 b illion, while total imports, in the same year, 
amounted to approximately US$5.2 billion. 
73. Malaysia and Chinese Taipei also enjoyed g ood investment ties where, in 2009, 32 
investment projects from Chinese Taipei with tota l investments amounting to US$209.3 million were 
approved. These investments were concentrated in the chemical and chemical products, scientific and 
measuring equipment, electronics and electri cal products, transport equipment and food 
manufacturing. WT/TPR/M/232 
Page 14  
 
  74. As an economy that is heavily dependent on export, the recent global economic crisis has 
adversely impacted on Chinese Taipei's export-orie nted economy. Chinese Taipei had responded to 
these challenges with expansionary monetary and fiscal policies to boost domestic demand, while 
resisting protectionism.  We commend Chinese Taipei for resisting protectionist measures during the recent financial crisis. It is noteworthy that d espite the turbulent global economic scenario, Chinese 
Taipei’s economy remained resilient where it is  expected to grow by 4.7% in 2010.   
75. We also note Chinese Taipei’s efforts in seeking new engines of economic growth and 
diversifying their economy, inter alia , through improving the international competitiveness of the 
services industries. As an economy that is heavil y dependent on exports, Malaysia too, is seeking 
ways to increase the competitiveness of our services sector as the new engine of growth. Thus, we 
will be following and monitoring very closely and with great interest the development of Chinese 
Taipei’s policies and plans in this respect. 
UNITED STATES 
76. We recognize that the period since Chinese Taip ei’s last Trade Policy Review has been a 
challenging one.  After growing an average of  4% a year between 2005 and 2008, Chinese Taipei 
suffered significant negative effects from the downt urn in global demand, as a result of its heavy 
reliance on exports, which were equivalent to 72 % of GDP in 2008.  The United States commends 
Chinese Taipei’s implementation of significant fiscal a nd monetary stimulus in response to the crisis, 
while avoiding protectionist trade and investment policies. 
77. To ensure sustained recovery from the globa l financial crisis and to establish a strong 
foundation for future growth, Chinese Taipei contin ues to pursue policies aimed at strengthening and 
diversifying its economy, building value-adde d industry, human capital and knowledge-based 
industry and services.  Continuing these efforts, particularly to strengthen domestic demand and to liberalize and develop service industries, would help  enable Chinese Taipei to reduce its dependence 
on manufactured exports in the future. 
78. The United States welcomes Chinese Taip ei’s accession to the WTO Agreement on 
Government Procurement (GPA) in July of 2009, and looks forward to working with Chinese Taipei 
in implementing the obligations of GPA memb ership in a full and comprehensive manner. 
79. In recent years, Chinese Taipei has undert aken significant new efforts to improve 
enforcement of intellectual property rights, a criti cal underpinning for Chinese Taipei’s dynamic and 
increasingly knowledge-based economy.  Bilateral coope ration on IPR enforcement has been a major 
focus of our bilateral economic dialogue, and we congratulate Chinese Taipei on the important 
progress that has been made since th e last Trade Policy Review.  This includes the establishment of a 
specialized intellectual property court in 2008 and the passage in 2009 of an amendment to Chinese 
Taipei’s Copyright Law to provide limitations on Internet Service Provider (ISP) liability if ISPs 
establish and follow certain procedures, including an expeditious notice-a nd-takedown regime to 
reduce online infringements.  The United States enc ourages Chinese Taipei to continue these efforts 
and looks forward to continuing our cooperation on these important issues. 
80. Chinese Taipei also has taken steps to liberali ze its trade and investment, seeking to enhance 
its competitiveness and to put its economy on a path  of high and sustainable economic growth.  
Recent steps to increase Chinese Taipei’s economic integration with the Asia Pacific region by 
reducing impediments to trade, investment, and transportation will also serve to enhance the 
economy’s attractiveness as an investment destina tion and production locati on.  We understand that 
there has been significant progress in cross-strait ec onomic cooperation, including the signing of an 
Economic Cooperation Framework Agreement (ECF A) on June 29.  The United States strongly 
supports continued progress in this  area, and we look forward to learning more about the status and  WT/TPR/M/232 
 Page 15 
 
 
  detailed provisions of the ECFA.  The United States notes the importance of transparency and 
consistency with WTO obligations w ith regard to bilateral and regi onal trade agreements for all WTO 
Members. 
81. In most areas Chinese Taipei has shown leader ship in embracing responsibilities with regard 
to the global trading system that are consistent with  its role in the global system.  Chinese Taipei has 
long recognized the importance of global trade to  economic growth and development.  As the 
Secretariat Report notes, Chinese Taipei is an in creasingly open economy, and an active participant in 
the WTO, with a strong commitment to the multilatera l trading system.  Notably, Chinese Taipei has 
implemented a number of Uruguay Round tariff cutti ng zero for zero agreements such as those for 
civil aircraft; pharmaceuticals; paper; and agriculture  and construction equipment.  Chinese Taipei is 
also a participant in the Information Technology Ag reement and has taken on many of the obligations 
in the Chemical Tariff Harmonization Agreement and Medical Devices Uruguay Round agreements.  
The United States notes that Chinese Taipei has supported trade liberalization through APEC and 
through bilateral trade agreements with a number of trading partners.  We also note the active efforts 
of Chinese Taipei in the Doha Round, and we look fo rward to working even more closely together to 
ensure an ambitious and balanced outcome of the Round, which includes contributions that are 
commensurate with Chinese Taipei’s advanced level of  development.  In this regard, we would like to 
remind Chinese Taipei that Paragraph 6 of its Working Party Report (W T/ACC/TPKM/18) includes 
the following sentence: “The representative of Chin ese Taipei stated that his government would not 
claim any right granted under WTO Agreements to developing country Members or to a Member in 
the process of transforming its economy from a centr ally-planned into a market, free-enterprise 
economy.”  
82. We have a strong trade and investment rela tionship. In 2009, Chinese Taipei was our 10th 
largest trading partner with more than $46 billion in two-way goods trade.  As of 2009, the stock of 
U.S. foreign direct investment in Chinese Taipei had reached $19.5 billion. In turn, Chinese Taipei 
had a stock of $4.2 billion in foreign direct investment (FDI) in the United States in 2009. 
83. The Trade and Investment Framework Agreement (TIFA) signed by the AIT and the TECRO 
in 1994 is the main mechanism for enhancing our bila teral trade relationship.  Our TIFA process has 
enabled us to make progress on a range of important  economic issues in the past, including many of 
the issues we will be discussing during this week ’s Trade Policy Review.  We look forward to 
working with Chinese Taipei through the TIFA pro cess to further deepen our bilateral economic 
cooperation.  
84. Despite Chinese Taipei’s solid record on economic  reform and trade liberalization, there are a 
number of areas where there could be further improvements, particularly with respect to measures affecting trade in agricultural products.  For certa in agricultural products, tariffs are high and public 
sector support for agriculture continues to be a fiscal burden. We also remain concerned with some of 
Chinese Taipei’s overly restrictive sanitary and phyt osanitary (SPS) measures as they apply to U.S. 
exports.  
85. The United States is concerned that Chinese Ta ipei has not provided access for the full range 
of U.S. beef and beef products in a manner consiste nt with the bilateral protocol agreed to in October 
of last year.  This protocol was carefully negotia ted by both sides and is consistent with both the 
World Organization for Animal Health (OIE) gui delines for Bovine Spongiform Encephalopathy 
(BSE) as  well as with Chinese Taipei’s own risk assessmen t on U.S. beef.  In addition, Chinese Taipei 
has undertaken a variety of inspection and quarant ine measures for U.S. beef and beef products, 
creating uncertainty in the market and disrupting trad e.  The United States has also raised questions 
about new import licensing procedures for beef and beef products. WT/TPR/M/232 
Page 16  
 
  86. Further, the United States continues to have concerns about other SPS matters, including the 
establishment of permanent maximum residue limits  (MRLs) for horticultural products and grains, 
avian influenza restrictions on imports of poultry meat and related products, and the continued delay 
in implementation of Chinese Taipei’s proposed MR L for ractopamine, which was notified to the 
WTO in August of 2007.  
87. Chinese Taipei is one of the world’s great fishi ng powers, fishing in the Atlantic, Pacific and 
Indian oceans.  According to th e Secretariat Report, Chinese Taipei  provides grants for vessel buy-
backs, vessel reduction, fishing season closures, marine  insurance for fishing vessels, fishmarket price 
stabilization, and aquaculture.  However, a Chin ese Taipei Council of Agriculture Report also noted 
that the 2008 National Fisheries Conference closed w ith an agreement to incorporate fuel for fishery 
vessels into the coverage of government subsidies and to provide subsidi es to cover the related 
operational costs for deep-sea fishing vessels.  We would appreciate a description of the nature and 
amounts of these subsidies.  The United States exp ects Chinese Taipei, commens urate with its fishing 
status, to make a significant contribution in achie ving an ambitious outcome in the Doha fisheries 
subsidies negotiations. 
88. The United States has also raised questions with  regard to Chinese Taip ei’s Country Specific 
Quota for importation of U.S. rice.  We look forward to discussing these important issues with the delegation from Chinese Taipei during this Trade Policy Review.     
89. Chinese Taipei is a valued partner of the Unite d States.  We share a common interest in its 
strong and stable long-term growth  and development.  We hope that  this Trade Policy Review will 
draw Chinese Taipei’s attention to the importa nce of consistently implementing science-based 
sanitary and phytosanitary measures, as well as the benefits of further market opening and 
liberalization of its economy, encouraging trade a nd investment and boosting its drive for global 
competitiveness. 
COSTA RICA 
90. Costa Rica congratulates Chinese Taipei on its economic achievements, in particular the 
significant progress made in recent decades in terms of economic growth and poverty reduction.  We 
note how the Secretariat's report emphasizes that although Chinese Taipei was indeed affected by the global economic downturn, its authorities adopted policy measures which, without any protectionist 
effects on trade and investment, helped to re verse this trend and reactivate the economy. 
91. It is also important to note Chinese Taipei's successful outward-oriented development 
strategy.  Trade between our two countries is modest:  in 2009 it amounted to no more than 
US$126 million.  A large share of this bilateral tr ade concerns products covered by the Information 
Technology Agreement, to which we are both signatories. 
92. My delegation recognizes Chinese Taipei as a Member committed to the multilateral trading 
system and the Doha Round.  As members of the Friends of Anti-Dumping Negotiations Group, 
Costa Rica and Chinese Taipei also  share an interest in ensu ring progress in the Doha Round 
negotiations on rules.  Similarly, we expect to see Chinese Taipei making a significant contribution in 
other areas of the Round, in particul ar the negotiations on agriculture. 
93. The Secretariat's report also emphasizes how, during the review period, Chinese Taipei 
maintained a stable environment in respect of its  tariffs and non-tariff protection, and notes the 
progress made in terms of the progressive reform and liberalization of the services sector, the territory's most important sector in terms of GDP and employment.  We encourage Chinese Taipei to 
continue making progress and reforms in areas such  as trade liberalization and investment climate 
improvement, which, according to the report, would help enhance its growth prospects.  WT/TPR/M/232 
 Page 17 
 
 
  JAPAN 
94. I would like to begin with Chinese Taipei’s economic policy and environment.  Japan 
congratulates Chinese Taipei on its resilient economy.   According to the Secretariat Report, although 
Chinese Taipei’s GDP growth contracted by 1.9% in 2009 due to the global economic slowdown, it is 
expected to recover quickly and reach 4.7% or ev en higher in 2010.  As Chinese Taipei is Japan’s 
fourth largest trade-partner, Japan has a close economic relationship with Chinese Taipei, and we 
heartily welcome the robustness of its economy. 
95. With regard to trade and investment policies, I would like to make four comments.  First, the 
Secretariat Report says that Chinese Taipei has pursued  trade and investment liberalization, mainly in 
the services sectors in recent years.   At the same time, it is restructuring its economy by stimulating 
domestic consumption and investment, and making im provements in investment climate to attract 
foreign direct investment.  Japan hopes that these policies will further promote economic relations with other Member States, as well as Chinese Taipei’s economic development. 
96. In this context, Japan has a few points for clar ification with respect to the national treatment 
in the financial services sector, as we explained in  the written questions submitted.  Japan would like 
to receive clarifications on these points through Chinese Taipei’s answers to those questions. 
97. Second, Japan hopes that the Economic Coopera tion Framework Agreement (ECFA) between 
Chinese Taipei and China will contribute to further lib eralizations in Asia and the world.  We would 
like to continue discussing the ECFA in detail at relevant committees in WTO or otherwise when the 
opportunities present themselves. 
98. Third, as for the applied MFN tariffs, accordi ng to the Secretariat Report, they remain 
unchanged at 7.8%, since the previous TPR in 2006.   We would appreciate their lowering in, for 
example, motor vehicle parts, two-wheeled vehicle parts, liquid-crystal displays (LCD), tobacco, sake 
and Japanese spirits ( shochu ). 
99. Fourth and finally, Japan appreciates the acce ssion of Chinese Taipei to the Government 
Procurement Agreement in July 2009, which i ndicated Chinese Taipei’s  readiness for greater 
openness, transparency and non-discrimination. 
100. Finally, Japan would like to reiterate its hope th at Chinese Taipei will continue its efforts to 
liberalize and promote trade and investment.   
EL SALVADOR 
101. We are pleased to note that since its previous review in 2006, Chinese Taipei has continued to 
liberalize trade and investment, mainly in the services sector, and is currently taking steps to 
restructure its economy and trade in order to attract foreign investment. 
102. According to the Secretariat's report, during th e review period, Chinese Taipei also continued 
to pursue structural reforms in areas such as taxati on, through, for example, a tax reform plan and 
improved tax collection, and continued to make progress in its regulatory reform programme, which 
has allowed for deregulation in numerous areas including services, investment, and customs. 
103. We would also like to congratulate Chinese Ta ipei on its successful efforts to improve 
administrative aspects and regulatory transparency, one  quality step in this regard being the daily 
publication of an integrated Cabinet Gazette , which is available online. WT/TPR/M/232 
Page 18  
 
  104. In light of the foregoing, we feel this is a valuable opportunity to highlight the progress made 
by Chinese Taipei in its recent phase of economic de velopment, during which it established itself as a 
potential source of foreign investment and exporter of information technology products. 
105. El Salvador enjoys a close and important friendship with Chinese Taipei, a territory which 
shares our values of democracy and freedom.  Its tr ade policy objectives will ensure that our trade 
links continue to solidify in the long term, with  continuing rapprochement in the political, economic, 
commercial and financial fields and in the area of cooperation.  We view Chinese Taipei as an 
important Member, one that has contributed to the de velopment of foreign investment in El Salvador 
and to the implementation of coopera tion programmes in a number of areas. 
106. At the bilateral level, El Salvador, like other c ountries in the region, is party to an Economic 
Complementarity Agreement covering a number of  cooperation programmes in areas such as trade, 
finance, infrastructure development, and investment and export promotion. 
107. Worthy of note are the sizeable investments made  by Chinese Taipei in El Salvador as a result 
of the aforementioned Agreement.  These include the development of an industrial hub aimed at 
increasing the flow of our reciprocal investments a nd the provision of relief to depressed areas of the 
country.  This investment initially amounts to approximately US$50 million and is expected to 
generate 1,000 jobs.  It is a clear example of the type  of aid that countries such as El Salvador need to 
incorporate themselves effectively into world trade. 
108. As a logical consequence of this, and with  a view to deepening these trade relations, 
El Salvador and Chinese Taipei, both WTO Member s, have concluded, as part of their trade 
negotiations agenda, a trade agreement including provisions on trade in goods and services, which 
establishes clear rules for investment  promotion together with provisions on rules of origin, safeguard 
measures, unfair trade practices, sanitary and phytos anitary measures, cross-border trade in services, 
and temporary entry of business persons. 
109. The benefits enjoyed by El Salvador under this  agreement include better access conditions for 
Salvadoran goods and services entering the Chinese Taipei market, a cooperation framework in the 
form of new cooperation and assistance programmes th at enable our production sector to take greater 
advantage of the opportunities provided by the agreemen t, diversification of the exportable offer, rules 
governing transparency mechanisms in trade, and the settlement of trade-related disputes. 
110. We note that the Government of El Salvador is making a systematic effort to promote, 
worldwide, the superior quality of Salvadoran  coffee, through initiatives such as the Cup of 
Excellence awards.  In this regard, we are very pl eased to note that, on the basis of prize-winning lots 
of coffee from various producers, some processing companies in Chinese Taipei have purchased, in 
an online auction, a number of lots of gourmet Salvador an coffee at prices that are very interesting to 
our producers. 
111. In 2009, a total of 26 Salvadoran companies – nine more than before the FTA came into 
effect – exported some 16 products to this market , including sugar, fish-meal, washed green coffee, 
waste paper, paperboard, iron and steel.  New products:  Noni juice and purée. 
112. Within the framework of our trade agreem ent and its respective implementation, the 
delegation of El Salvador  formulated a number of questions on Chinese Taipei's trade policy in 
relation to matters such as measures directly a ffecting imports, registration, documentation and 
procedures, taxation, and fiscal aspects.  Today we ha ve received the replies to those questions;  we 
hope to examine them shortly and will request further clarification if necessary.  WT/TPR/M/232 
 Page 19 
 
 
  113. At the multilateral level, we note the active role that the Chinese Taipei delegation, headed by 
the distinguished Representative Mr Yi-Fu Lin and his team, plays in the current round of 
negotiations. 
114. Chinese Taipei and El Salvador also share co mmon objectives regarding intellectual property, 
with Chinese Taipei having amended a number of laws  and regulations in order to ensure enhanced 
protection for intellectual property rights, in particular  in the area of copyright and patents.  In the 
intellectual property negotia tions currently taking place at the WTO, Chinese Taipei plays an active 
role in TRIPS Council discussions and recognizes th e importance of the development dimension and 
the function of intellectual property protection. 
115. Since intellectual property is considered to be nefit and provide a favourable environment for 
development and reinforcement in areas such as innovation and protection of the intangible 
commercial assets of Members, important initiatives are fostered in this area. 
BRAZIL 
116. Brazil would like to congratulate Chinese Taipei  on the significant achievements in the area 
of macroeconomic management and trade policy.   We also congratulate you for the landmark 
Economic Cooperation Framework Agreement just si gned with China and we look forward to the 
replies to the Discussant’s request for further information on the Ag reement’s objectives and content.  
Among the results attained over the period of this TPR, it is worth mentioning that Chinese Taipei has 
sustained GDP growth on the average rate of 4% from 2005 to 2008, stabilized low inflation and 
relatively low unemployment rates.  Given its str ong reliance on trade, Chinese Taipei was bound to 
be severely hit by the world economic and financia l crisis in 2009.  Not surprisingly the GDP fell 
1.9%.  We hope that a sustained recovery of the world economy from 2010 onwards will also translate 
into a resumption of the sustaine d growth rates for Chinese Taipei. 
117. While we welcome the substantial liberalization of Chinese Taipei’s trade regime since its 
accession to the WTO in 2001, we note that the agricu ltural sector is still lags behind, failing to follow 
the pace of liberalization of services and manufacturing.   As noted by the delegations of New Zealand 
and Hong Kong, China tariffs for agricultural produc ts continue to be relatively high (on average 
22.1%, whereas in industrial products that average is of 5%).  We also note with concern that Chinese 
Taipei applies phytosanitary restrictions to imports of beef that are stricter than necessary to comply 
with the SPS Agreement, thus affecting potential Brazilian exports of such product.  The current 
practice in Chinese Taipei is to admit imports onl y from countries whose entire territory is proven to 
be free from diseases, failing to accept the principle of regionalization recognized not only by the SPS 
Agreement but also by the OIE. 
118. Since its last Trade Policy Review, Chinese Taipei ’s total trade with Brazil almost quintupled, 
from US$1.1 billion in 2002 to US$5.0 billion in 2008 (in 2009, the effects of the crisis have 
temporarily reduced our total trade to US$3.4 bill ion).  The trade balance has been consistently 
positive for Chinese Taipei since 1995.  As we me ntioned before, further trade openness of the 
agricultural sector of Chinese Taipei would be an essential element to allow for more balanced trade 
flows.  Brazil’s main exports to Chinese Taipei comprise iron and steel products, soybeans, corn, 
minerals, sugar, EMBRAER’s airpla nes, coffee, orange juice and ch emicals, among others.  Chinese 
Taipei’s main exports to Brazil include electroni c circuits, LCD screens and other TV parts, laser 
discs and many IT products. 
119. We are pleased to notice in its report that, like Brazil, Chinese Taipei attaches a high priority 
to the strengthening of the multilateral system of  trade and also supports an early and successful 
conclusion of the Doha Round Negotiations. WT/TPR/M/232 
Page 20  
 
  ARGENTINA 
120. We note that both reports emphasize the high level of trade openness enjoyed by Chinese 
Taipei, as is clear from the proportion of trade in relation to economic producti on, and its low average 
applied tariff, despite some remaining tariff peaks mainly affecting trade in agricultural products. 
121. We also value the unwavering commitment th at the Chinese Taipei delegation has shown 
over the years, and which it continues to show, not only to the Doha negotiations, but to the 
institutional development of the WTO.  On this occasion, we would have liked to receive further 
information concerning Chinese Taipei's current  subsidy and support programmes for fishery 
activities;  this would have been very useful to  Members, given the importance not only of Chinese 
Taipei in this regard, but of the activity itself with in the context of the disciplines we are working on 
at the WTO. 
TURKEY 
122. Our two way trade with Chinese Taipei reached about US$1.6 billion in 2009, and it is in an 
increasing trend.  We believe there is a large room  to improve the trade and economic relations as our 
economies recover from the latest crisis. 
123. In terms of the economic performance, as also stressed by other delegations, Chinese Taipei 
has achieved significant progress in bringing prosper ity to its people through an export led growth 
strategy, and sound macroeconomic stability. 
124. Nevertheless, we also noted that the latest cr isis has increased the questions on whether there 
is room for possible structural changes like diversifi cation of exports in the composition of growth.  It 
seems that the Government of Chinese Taipei is  also moving towards more reliance on the domestic 
demand.  We hope that this policy change will be maintained in the near future. 
125. It is also noteworthy that Chinese Taipei h as been engaged in a process of reforms and 
substantial deregulation in a number of fields with  the aim to improve business environment.  In this 
respect, we would like to underline the effort s to strengthen the regulatory transparency. 
126. Deregulation and enhanced transparency could increase the share of the foreign investments 
in the economy.  Resumption of the privatization pr ocess may also attract more foreign investments.  
Similarly, further liberalization and reform of the services sectors may contribute more to the sustainable growth.  In this respect, we will ve ry much appreciate Chinese Taipei’s comments on the 
potential contribution of ECFA to this process. 
127. We note with pleasure that Chinese Taipei’s trad e regime is highly predictable with low and 
fully bound rates.  In the meantime, we believe th at simplification of its complex tariff structure 
which compromises 150 different rate bands will help  further improve trade regime, and strengthen 
the predictability. 
128. We appreciate that Chinese Taipei has continued to  improve its practices of standardization.  
Many of them are voluntary.  However, alignment with the international standards is around 18%, and 
in a declining trend. 
129. We believe that this trend needs to be reve rsed in favour of further alignment with the 
international standards in the future.  It is also important that Chinese Taipei completes evaluation of 
its pesticide maximum residue limits on the risk assessment basis.  WT/TPR/M/232 
 Page 21 
 
 
  130. Another issue which has drawn our attention is the use of a valua tion database at the customs.  
While we appreciate the need for such  a database, we believe that this practice must be limited and its 
use must be eliminated beyond the prevention of under invoicing for certain goods.  In this respect, we will very much appreciate further clarificati on on the risk management techniques used in the 
valuation database. 
131. Lastly, we would like to acknowledge that Chin ese Taipei is an active participant in the DDA 
negotiations, and we share the Chinese Taipei’s views on reaching an ambitious and balanced 
outcome in the DDA. 
CHINA 
132. Since the First Trade Policy review of Chinese Taipei in 2006, we are delighted to witness 
continued economic development and the accompanying boom of trading activities across the straits. 
Since May 2008, both sides across the straits have promoted and adopted respectively a number of policies and measures favourable to trade and econom ic development across the straits. As a result, 
annual trade volume has exceeded US$100 billion for four consecutive years, and the accumulative 
total trade in the past three decades amounted to US$1 trillion. Investment projects from Chinese 
Taipei to the Mainland have reached over 80,000.  The two sides have signed a number of economic 
and trade cooperation pacts, which in the end lead to the resumption of direct shipping and postal links.  
133. As Mr. Lin said just now, in order to meet  the demand of the fast economic development 
across the straits, starting from the beginning of this  year, the two sides had engaged in negotiations 
on the Economic Cooperation Fram ework Agreement (ECFA);  the agreement was just signed on 
June 29. It is based on the unique relationship across the straits with the followi ng purposes:  first, to 
normalize and improve economic, trade and inv estment cooperation;  second, to promote 
liberalization of trade in goods and services; and thir d, to give impetus to the two-way investments in 
a fair, transparent, and convenient manner. 
134. We believe that the signing of ECFA is conduc ive to realizing complementary comparative 
advantages, mutual benefit and win-win to both side s by providing further and sustained thrusts to the 
economic development of Chinese Taipei and Mainland China. It will also bring benefits to Members 
in the Asia-Pacific region. 
135. Despite the positive side, as indicated in the S ecretariat Report, Chinese Taipei still maintains 
import restrictions towards a large number of produc ts originated in Mainland China and applies quite 
a number of investment restrictions and strict c ontrols on the movement of natural persons from the 
Mainland. These policies and measures will have nega tive impacts on further exploring the potentials 
of trade and economic cooperation and ma y limit Chinese Taipei’s own development. 
136. We thank Chinese Taipei for providing replies to  our advance written questions. And we have 
just submitted a few more before this session. We hope Chinese Taipei will find this review useful in 
evaluating its trade policies and practices. We l ook forward to more positive and effective measures 
from Chinese Taipei to lift its trade and investment  barriers so that trade exchanges and cooperation 
across the straits will be further strengthene d in an open, fair and win-win manner. 
PERU 
137. Chinese Taipei acceded to the WTO as its 144
th Member on 1 January 2002.  According to 
WTO statistics, two years after its accession, the value of its trade grew by 41.6 per cent.  In our view, 
Chinese Taipei has therefore benefited from the open and liberal international trading system;  its 
history shows how international trade has driven economic growth and develo pment, transforming it WT/TPR/M/232 
Page 22  
 
  into a modern industrial economy and a leading ex porter of information te chnology (IT) products.  
We also note that by keeping markets open, the multilateral trading system has contributed to the 
steady growth of the Chinese Taipei economy. 
138. The Secretariat's report states that the shar p drop in global demand owing to the global 
economic crisis has also affected Chinese Taipei , exposing the risks associated with its heavy 
dependence on a few manufactured exports, promp ting the authorities to seek new engines of 
economic growth and diversify the economy.  Impr oving the international competitiveness of services 
industries has become one of the Government's prio rities and challenges;  the further liberalization 
and deregulation of the services sect or could contribute significantly to these efforts and is therefore 
to be encouraged. 
139. Peru welcomes the recent Ec onomic Cooperation Framework Ag reement with China.  We 
hope that it will contribute to further trade liberalization in both Asia and the rest of the world. 
140. While bilateral trade does not amount to any significant sum, we believe it shows 
considerable potential for growth, having reached  a value of US$831 million in 2008.  Chinese 
Taipei's main exports to Peru include industria l, computer, high-tech and mechanical goods, while 
Peru's main exports are, for the most part, mining and fishery sector products. 
141. We expect trade and investment levels to increase following a number of important trade 
missions to Peru by Chinese Taipei businessmen in the last two years.  As well as being 
WTO Members and sharing objectives for the prompt  conclusion of the Doha Round, Peru and 
Chinese Taipei are members of the Asia-Pacific Economic Cooperation forum (APEC), an area in 
which we maintain a very close cooperative relationship. 
CHILE 
142. Chinese Taipei and Chile are geographically very  distant from each other, yet these distances 
narrow substantially when it comes to economic po licy, trade links and development strategy.  
According to the most recent figures av ailable, Chinese Taipei is Chile's 17
th largest trading partner 
and its 9th most important destination for exports. 
143. Since Chinese Taipei's last tr ade policy review in 2006, both imports to and exports from 
Chile have increased significantly, with trade be tween the two countries amounting to more than 
US$2,100 million in 2008, a figure which declined in 2009 due to the global crisis. 
144. These figures are consistent with the economic cl imate in Chinese Taipei as described by the 
Secretariat, in particular with regard to the imp act that the global economic crisis had on the Chinese 
Taipei economy in terms of the decline in per capita income and the growth of unemployment. 
145. The Secretariat's report also refers to the elements that have ensured rapid growth, prosperity 
and the general stability of Chinese Taipei's economi c, financial and trade environment.  Beyond the 
turmoil typical of the recent economic crisis, we beli eve that the health of the economic and financial 
system remains sound, and welcome the fact that  despite the problems generated by the crisis, 
Chinese Taipei has not introduced any protectionist  or macroeconomic measures that have kept 
inflation rates low. 
146. Despite the aforementioned geographical distan ce, Chile and Chinese Taipei are also united 
by the understanding that trade liberalization and fo reign trade development constitute a key aspect of 
economic policy.  Similarly, both countries recogni ze the importance of economic diversification and 
the risks involved in remaining reliant on a small number of products.  WT/TPR/M/232 
 Page 23 
 
 
  147. Neither Chile nor Chinese Taipei, whose economies depend to a large extent on foreign trade, 
are indifferent to what is happening at internati onal level, and we therefore very much value a 
multilateral trading system based on clear rules whic h provides certainty and stability with a view to 
further economic development.  For this reason,  in addition to our WTO membership, we both 
participate in other economic fora such as the Asia-Pacific Econom ic Cooperation forum. 
148. Within the WTO framework, in services, we have  made a joint effort to enhance existing 
levels of liberalization in areas where we seek  higher levels of commitment on market access and 
national treatment, and strong national regulatory regimes.  However, this convergence does not 
extend to all issues.  One area in which our opinio ns differ from those of Chinese Taipei is fishery 
subsidies. 
149. The Secretariat's report states that in Chinese Ta ipei "in fisheries, the Government provides 
grants for implementing programmes for buy-back of  fishing vessels, reduction of fishing vessels, for 
closing fishery season, for water-recirculation devi ces used in aquaculture, marine insurance for 
fishing vessels, and fish market (price) stabilizatio n, as well as aquaculture facilities subsidized by 
loan programmes".  These are aspects we do not share. 
150. As far as intellectual property is concerned, we  are both party to the joint proposal through 
which we seek to fulfil the TRIPS Agreement ne gotiating mandate in respect of facilitating the 
registration of geographical indications for wines and spirits.  In the same area, we hold very similar 
views on the relationship between the TRIPS Agreem ent and the Convention on Biological Diversity. 
151. Lastly, at the bilateral level, and with rega rd to investment, we wish to highlight the 
participation of Chinese Taipei capital in Ch ile, which currently amounts to US$10,500 million. 
COLOMBIA 
152. It is encouraging to see how Chinese Taipei, which has based its development strategy on 
economic internationalization, has successfully over come the recent global crisis.  Having seen its 
production decline by 1.9 per cent in 2009, the most  recent estimates suggest that in 2010 the GDP 
will grow by 4.7 per cent, a rate even higher than the 4 per cent average in the four-year period before 
the crisis. 
153. It should also be noted that during the review  period, Chinese Taipei continued its trade and 
investment liberalization process, focusing its effo rts on the services sector and the diversification of 
its manufactured goods exports. 
154. With regard to trade policy, we note significan t progress in the deregulation of a number of 
sectors such as services, investment and customs.  Al so worthy of note are the steps taken to improve 
regulatory transparency, including the daily publication of an integrated Cabinet Gazette , which is 
available online. 
155. We congratulate Chinese Taipei and the People' s Republic of China on having recently signed 
an Economic Cooperation Framew ork Agreement, under which tariffs are eliminated for a 
considerable number of products and access is provided for important services sectors.  This 
Agreement will undoubtedly help to strengthen both economies. 
156. With regard to MFN tariffs, no changes have been noted and the average is relatively low 
(7.8 per cent).  However, Chinese Taipei continu es to apply specific and alternate duties which can 
result in high levels of protection and which de tract from the transparency of the system, while 
particularly affecting agriculture. WT/TPR/M/232 
Page 24  
 
  157. It is striking that despite the highly globalized nature of its economy, Chinese Taipei 
continues to afford a high level of protection to agriculture (an average of 22 per cent compared to 
5 per cent for manufactured goods), even though this  sector represents only 1.6 per cent of the GDP.  
Such protection consists of not only tariffs, but  quotas, automatic safeguards and domestic support. 
158. According to the Secretariat's report, the Government envisages replacing the guaranteed 
price system for rice with a direct payment system.  It would be useful to know  more about the nature 
of this policy, its state of progress, and whether Chinese Taipei foresees the further opening up of its 
agricultural sector. 
159. At WTO level, we note that Chinese Taipei has fulfilled its obligations, in particular those 
pertaining to notification.  We also welcome its ac tive participation in the Doha Round and hope that 
its effective contribution will help ensure the prompt conclusion of these negotiations. 
160. On the bilateral front, Colombia and Chinese Taipei maintain a growing, yet small volume of 
trade, the value of which exceeds US$300 million,  but which shows a substantial deficit for 
Colombia.  This can be explained by Colombia's substantial imports of hi-tech manufactured goods, 
textiles and chemicals, while its exports are ma inly commodities such as ferronickel, chemicals, 
coffee and emeralds.  We believe, however, that there is much room to deepen our trade and 
investment relationship given the obviously complementary nature of our economies. 
CANADA 
161. The recent global economic crisis dramatically revealed the extent to which the Chinese 
Taipei economy is linked to the global economic syst em.  We note that after having seen its exports 
and GDP disproportionately affected during the initial phase of the economic recession, Chinese 
Taipei recently announced year-on-year two-figure increases in its GDP, which exceed the pace of the 
global economic recovery.  Since Chinese Taipei is Canada's fourth largest trading partner in the 
region, with bilateral trade amounting to some US $4.4 billion in 2009, and a key partner and market 
in a wide range of industrial sectors, we are ke enly interested in supporting its continued and 
enhanced commitment in the WTO. 
162. In this regard, Canada would like to commend Chinese Taipei on its continuing support for 
greater liberalisation in the NAMA negotiations, and for its excellent contribution to the work on 
sectoral proposals.  In addition Canada would like to congratulate Chinese Taipei for the completion 
of its accession to the WTO Agreement on Government  Procurement.  We welcome Chinese Taipei’s 
membership in the WTO-GPA and encourage its fu ll participation as a party of this plurilateral 
agreement. 
163. Canada looks forward to working with Chinese Taipei in seeking ways to further strengthen 
this participation in the WTO, and believes that  Chinese Taipei’s position as a crucial supplier of 
components in many products dependant on the global supply and value chains means that its 
continued prosperity is clearly in the interest of all WTO Members.  The linkages between Chinese 
Taipei and the world economy illustrate why Chinese Taipei needs a robust and productive 
participation in the WTO as well as in other internat ional trading for a in order to ensure sustained 
prosperity over the medium and long term. 
164. In this context, Canada also notes with interest the recent signing of the Economic 
Cooperation Framework Agreement between Chinese Ta ipei and the People’s Republic of China, and 
expects that Chinese Taipei’s trade liberalization ef forts with regional partners will be helpful in 
ensuring its continued economic growth and pr osperity over the medium and long term.  WT/TPR/M/232 
 Page 25 
 
 
  165. In the bilateral context, Canada is also pleased to note the resumption of the bilateral 
economic consultations between Canada and Chinese Ta ipei, thus providing another useful forum for 
exploring and addressing commercial and economic issues of mutual interest. 
166. Generally speaking, Canada is also pleased  to note the commitment and progress Chinese 
Taipei has made on a broad range of issues since its WTO accession in 2002.  Canada welcomes de 
2010 establishment of Chinese Taipei’s Food and Drug Administration with the expectation that it 
will help clarify the domestic pharmaceutical regulat ory environment, and help  strengthen, control, 
and speed up customs procedures and enhance consumer safety. 
167. In the area of sanitary and phytosanitary measur es, Canada is encouraged by several decisions 
that have been taken since the last Trade Policy Revi ew to open or re-open the domestic market, or to 
regionalize restrictions. 
168. However, with respect to beef and beef products Canada notes that progress on commitments 
has been slow.  Decision making appears to rely only partly on the relevant sound international 
scientific standards.  In addition, at times, the process for the implementation of technical decisions 
lacks the necessary transparency.  In  the case of beef access, Canada’s controlled risk status for BSE 
in the OIE since 2007 has not led to the re-opening of trade in bone-in beef or offal. 
169. In closing, Canada considers Chinese Taipei to  be a key trading partner in the region, and 
looks forward to working with Chinese Taipei as it c ontinues to seek ways to enhance its engagement 
under the WTO, to the benefit not only of its ow n economy but to the economies of all other WTO 
Members. 
THAILAND 
170. Before I begin, let me also extend our sincere congratulation to the recent signing of the 
Economic Cooperation Framework Agreement (ECF A) between China and Chinese Taipei. We 
believe this Framework Agreement is truly historical and we hope it would mark the beginning of 
much closer cross-strait relations in the future. 
171. When reading the trade policy review reports of Chinese Taipei, it is no surprise that they 
would be filled with so many commendable stories.  For instance, when the world is experiencing the 
impact of recent global economic crisis, Chinese Taipei  has been resilient and able to maintain robust 
and consecutive economic growth of more than 4% on average for the past five years (though I took 
note of the contraction in trade experienced by Ch inese Taipei in 2009 as mentioned by Minister Lin 
in his statement). We are pleased to note also the achievement of Chinese Taipei in improving its 
international competitiveness in the services industry, which is the largest contributor to its GDP and 
its employment. It is no doubt that in our effo rts to find the sustainable global economic growth, 
Chinese Taipei will certainly serve as one of the major economic forces. 
172. In terms of trade policy framework, Thailand believes that Chinese Taipei has increasingly 
integrated itself into the world economy through it s active participation of various facets including 
multilateral trade negotiations as well as  bilateral trade negotiations.  We  also appreciate the efforts of 
Chinese Taipei in continuing with their regulat ory reforms and improving the overall regulatory 
transparency. 
173. On trade policy development, autonomous ta riff reductions and improved intellectual 
property rights protection have demonstrated Ch inese Taipei’s unwavering commitments to trade 
liberalization. However, some agricultural products  are still faced with complex tariff structures and 
high tariffs. Therefore we encourage Chinese Taipei to do their utmost in addressing these problems 
and provide additional market access for these agricu ltural products. In addition, we urge Chinese WT/TPR/M/232 
Page 26  
 
  Taipei to consider lowering some limitations for the movement of non-Chinese Taipei persons in the 
tourism sector. 
174. We are pleased to learn that Chinese Taipei has contributed to the Aid-for-Trade and trade-
related technical assistance activities; and has also provided duty-free treatment to selected imports from least developed countries.  We strongly hope that Chinese Taipei would maintain these efforts 
and continue to play an active role in pushi ng forward the DDA negotiations to a successful 
conclusion.   
175. For a long time, Thailand and Chinese Taipei ha ve enjoyed excellent bilateral trade and 
investment relations. Chinese Taipei is not only one of the significant trading partners of Thailand but 
also one of the top ten major foreign investors in the Thai economy.  The continued efforts in trade 
liberalization by Chinese Taipei will, at the same time, work to benefit Thailand’s economic growth 
and development.  In this connection, we have put forward some specific questions in writing to 
clarify a few points of concerns.  We are of the opi nion that with some adjustment in trade policies 
and measures, mainly in agriculture, Chinese Taip ei would indeed contribute significantly to the 
sustainability of the multilateral trading system. 
EUROPEAN UNION 
176. Chinese Taipei states in its own report that the multilateral trading system is the foundation 
for the sustainable development of a stable global economy. Accordingly, since its last TPR in 2006, 
Chinese Taipei has continued relying on the multilatera l trading system and pursuing further trade and 
investment liberalization. And in this spirit, Chinese Taipei is developing fast and steadily and 
transforming its economy into a modern industrial economy. We understand thus that Chinese Taipei 
will continue to actively contribute to the good func tioning of the WTO, and to make commitments 
commensurate to its high level of development.  
177. Like others, Chinese Taipei has also suffered from the global economic and financial crisis, 
which has slowed down its vigorous economic growth .  The EU would like to join others in 
commending Chinese Taipei for not having resorted to protectionist measures in response to the crisis. 
However, the global crisis has also brought home certain shortcomings in its economy, notably its 
high dependence on a limited number of manufactu red exports. The EU understands that the 
government is already working on how to find new ways to further diversify its economy and to stimulate internal demand and consumption. To this endeavour, Chinese Ta ipei has targeted the 
improvement of the international competitiveness of services as one of its key priorities.  
178. The EU would like to encourage Chinese Ta ipei to improve services' competitiveness by 
further opening up its services sectors, encourage pr ivate and foreign investment, and remove trade 
barriers still in place. As the Secretariat's report not es, there remain informal barriers and investment 
restrictions in a number of subsectors; for instan ce, Chinese Taipei continues to impose foreign equity 
limitations in the telecommunications sectors. Furthermore, and despite recent privatization measures, several major financial institutions continue to be government-owned and postal services remain 
closed to private investment. The removal of the remaining impediments would certainly improve the 
investment climate and would attract higher inward direct investment, which Chinese Taipei continues to be in high need.  
179. Increased inward investment levels together w ith a higher degree of liberalization of services 
sectors would eventually contribute to the greater  integration of Chinese Taipei into the world 
economy.  Further integration at regional level would serve as a platform to strengthen economic and 
trade relationships and to foster inter-regional i nvestment. In this regard, we welcome the recently 
signed Economic Cooperation Framewor k Agreement with China as well as the cross-strait agreement 
on protection and cooperation on intellectual prope rty rights, which are important steps forward  WT/TPR/M/232 
 Page 27 
 
 
  toward the normalisation and improvement of cro ss-strait relations, and which would are beneficial 
for both sides. Today, we would welcome to hear further details on the concrete objectives, coverage 
and timeframes for establishing this agreement for goods, services and investment.  
180. As regards our own bilateral relationship, the Eu ropean Union continues to be one of Chinese 
Taipei's main trading partners.  In 2009, bilate ral trade in goods was €27.5 billion, and trade in 
services stood over €6.6 billion, despite the crisis. Th e EU companies are the biggest foreign investors 
and have a major stake in the economic development of Chinese Taipei.  
181. Trade policy should be formulated in a way th at it contributes to sustainable patterns of 
production. During its previous TPR, Chinese Taipei stre ssed that this was an important issue, and it 
was holding important conferences "aimed at seek ing a balance among the economy, environment, 
and energy to ensure sustainable development". We  would like to know more about the outcome of 
these discussions, and how Chinese Taipei is conseque ntly will be arriving at such a balance for its 
trade policy while also integrating social and labour aspects.  
182. I would like now to move to some specific tr ade concerns we have with Chinese Taipei, 
which have already been addressed in detail in our written questions submitted prior to this meeting. 
183. Firstly, I would like to refer to Chinese Taipei's regulatory regime. We note with 
disappointment that the share of applied standards in  Chinese Taipei that are aligned to international 
standards has dropped from 25% in 2005 to 18% in 2009. There is thus a downward trend in adopting 
international standards despite this was already an issue of concern by many Members during the last 
TPR in 2006. In some cases, products are also  subject to duplicative conformity assessment 
procedures, due to diverging rules set by different authorities. We can only but urge Chinese Taipei to 
address WTO Members' concerns and to substantially  step up its efforts by improving its alignment 
with international standards, as well as to stre amline conformity assessment procedures. These steps 
would not only remove current obstacles for intern ational trade but also further integrate Chinese 
Taipei into the multilateral trading system and increase its commercial links with WTO Members. 
184. Secondly, I wish to touch upon government pr ocurement. Chinese Taipei  acceded to the GPA 
in 2009, an important step welcomed by the EU . As a result, Chinese Taipei brought its internal 
legislation on government procurement in line with the GPA rules of transparency and made related 
market access commitme nts. However, foreign suppliers re port about current regulations and 
practices which still represent barriers to trade: a burdensome liability regime;  limited information in 
the tender notices, given in WTO official languages; a disproportionately short time period for submitting tenders; and a systemic overuse of the lowest price criterion for the award of contracts. In 
this regard, the EU would like know what measures Chinese Taipei intends to take for removing these 
remaining obstacles. 
185. Thirdly, I would like to address intellectual property rights. The EU acknowledges Chinese 
Taipei's continued efforts and de termination in building up its le gal framework and intensifying the 
enforcement of IPR protection. In fact, this is cr ucial for developing Chinese Taipei into a knowledge 
and innovation-based economy, which would in tu rn contribute to foster FDI. As regards 
enforcement, we see further room for improvement, and we would thus enc ourage Chinese Taipei to 
step up its efforts. In particular, the Secretariat's report points to deficiencies in controlling counterfeit 
pharmaceuticals, trade mark counterfeiting, sale of  counterfeit goods over the internet and the so-
called trade dress. An explanation on how Chinese Taipei plans to address these current challenges 
would be highly appreciated by the EU. 
186. Touching as we have on the pharmaceutical sector , it is worth pointing out other difficulties 
encountered by pharmaceutical companies. Cumber some registration of pharmaceutical products, as 
well as lengthy procedures for reimbursement di scourage many companies from placing innovative WT/TPR/M/232 
Page 28  
 
  drugs on the Chinese Taipei market, and ultimatel y preventing patients from receiving the best 
possible treatment. The absence of an effective m echanism relating to patent disputes is another 
source of concern to pharmaceutical companies. 
187. Lastly, I would like to highlight agriculture products. Chinese Taipei is a major importer of 
food products, yet EU exporters s till face unreasonable delays of approval, some cases even stretching 
to over five years for meat products, as well as a pparent different treatment compared to other 
exporters with similar (OIE) animal health status for BSE. In this regard, we would like to know how 
Chinese Taipei plans to speed up approval procedur es, and follow international (OIE) rules for the 
benefit of its consumers.  
REPUBLIC OF KOREA 
188. Korea and Chinese Taipei enjoy rich and extens ive economic and cultural relations.  Bilateral 
trade figures consistently top US$22 billion annuall y, making Chinese Taipei Korea’s ninth largest 
trading partner.  In this year, fuelled by the ec onomic recovery around the world, bilateral trade is 
poised to grow to new heights, up to a new r ecord of US$25 billion.  We welcome this new 
development, and hope that this trend w ould further continue in the coming years. 
189. In terms of investment, Korean firms have t hus far invested in excess of US$4.7 billion, 
mainly in the field of Information Technology where firms in Chinese Taipei hold a comparative 
advantage over its competitors. 
190. In regards to Chinese Taipei’s economic perform ance, like all the speakers who spoke before 
me, I would like to express my appreciations to  Chinese Taipei for the economic progress achieved 
over the period under review.  We note the difficulti es it has had to overcome since late 2008 in the 
advent of the economic and financ ial crisis, and express our high pr aise for the swift response of the 
Government to mitigate the negative effects.  Add itionally, we take due note of the commitment of 
the Chinese Taipei authorities to re frain from resorting to protectionist measures in response to the 
crisis. 
191. With regard to this issue, however, the Secretar iat Report states that “the most recent crisis 
exposed the risks associated with high dependence on a few manufacture exports”, and further states 
that “the authorities are seeking to diversify the economy’s structure, and search for new engines of 
growth, in particular, the services industry”.  Given that  this is an issue of interest to us, we wonder if 
Chinese Taipei could further elaborate on its current strategy to develop and increase the competitiveness of their services industry.  We would be particularly interested in obtaining further 
detail with regards to plans for the development of the medicine and healthcare sector, and the cultural 
services sector. 
192. With regard to Chinese Taipei’s trade policy, in  light of all the comments that were raised 
before me, I would like to simply focus on two issues that are of interest to us.  First, the Economic 
Cooperation Framework Agreement (ECFA) between  China and Chinese Taipei.  Various news 
agencies have reported that the ECFA has been conc luded on 29 June, but details of the agreement are 
sketchy at best.  We hope that Chinese Taipei w ill provide detailed informat ion about the ECFA as 
much as possible with the view to help us be tter understand this Agreement between Chinese Taipei 
and China. 
193. Second, the SPS regime of Chinese Taipei.  We note from the Secretariat Report that 
apparently there is some backlog with regards to the establishment of pesticide tolerance standards.  
While we appreciate the efforts of the authorities to  reduce the backlog by establishing a priority list 
and working to expedite the overall process, we have  been informed by capital that as of today the 
current situation is adversely affecting the potential for exports to Chinese Taipei of certain fruits and  WT/TPR/M/232 
 Page 29 
 
 
  vegetables of export interest to us.  In this c ontext, we would like to urge the Chinese Taipei 
authorities to further speed up the necessary process so that Chinese Taipei’s SPS regime will not be a 
hindrance to trade. 
194. My remarks would not be complete if I did not include my delegation’s appreciations to 
Chinese Taipei for their contribution to the a dvancement of the DDA negotiations.  Korea will 
continue to work closely with Chinese Taipei as members of the G-10 for the successful conclusion of 
the Round. 
SINGAPORE 
195. Singapore enjoys strong economic ties with Chin ese Taipei.  Chinese Taipei is an important 
trading partner in Asia for Singapore.  Although, b ilateral trade was adversely affected by the recent 
global economic crisis, falling 14. 8% to S$31.2 billion (US$22.29 billion) in 2009, Chinese Taipei 
remained as Singapore’s 9th largest trading partner.  With the global economic upturn, trade with 
Chinese Taipei has picked up in the first quarter of 2010, rising 77.4% from the same period in 209 to 
S$9.77 billion (US$6.98 billion). 
196. Chinese Taipei is also an important investment partner in Asia for Singapore.  As of 2008, 
Chinese Taipei was our 4th largest source of Asian investments, with cumulative investments of S$7.6 
billion (US$5.43 billion).  At the same time, Singa pore’s cumulative investment in Chinese Taipei 
stood at S$5.8 billion (US$4.14 billion), making it Singapore’s 6th largest investment destination in 
Asia. 
197. We congratulate Chinese Taipei on its good econom ic performance over the past years.  We 
note that between 2005 and 2008, Chinese Taipei econom ic growth averaged 4% per year and despite 
the economic downturn affecting the growth in 20 09, the economy has quickly recovered and is 
expected to bounce back to grow by 4.7% in 2010. 
198. We note the large role that trade in services play in Chinese Taipei’s economy.  The global 
economic crisis has shown the need for Chinese Taipei to diversify from dependence on a few 
manufactured exports, to make the improvement of  the international competitiveness of the services a 
priority.  The Secretariat Report has highlighted th at further liberalization and deregulation of the 
services sector could contribute significantly to these efforts.  We look forward and welcome such 
further liberalization and deregulation. 
199. In the same vein, we note Chinese Taipei’s effort s to improve its environment for investment 
and promote emerging sectors.  However as noted  in the Secretariat Report, limits on non-Chinese 
Taipei investment and other restrictions apply in  basic telecommunications and transport services.   
200. The recent economic crisis has placed increased  protectionist pressures on all economies.  
Chinese Taipei like Singapore is very trade dependent and has an interest in a rules-based multilateral 
trading system.  Chinese Taipei and Singapore are strong friends, and in Geneva we are grateful to have been able to work so well with the Perman ent Representative LIN Yi-Fu and his delegation here.  
Singapore is committed to working with Chinese Taipei  against the rising threat of protectionism and 
towards furthering the multilateral trade agenda. 
201. Singapore welcomes the recent signing of the Ec onomic Cooperation Framework Agreement.  
We are confident that the conclusion of the ECFA will further enha nce economic cooperation 
between Chinese Taipei and China and promote regional economic integration. WT/TPR/M/232 
Page 30  
 
  GUATEMALA 
202. I will begin by highlighting the friendship and good relations that exist between Guatemala 
and Chinese Taipei, as well as the importance of  Chinese Taipei's cooperation with Guatemala.  
Guatemala and Chinese Taipei have concluded a number of agreements a nd understandings providing 
for support and cooperation programmes in areas such  as agriculture, education and public security.  
These programmes have also been central to the gene ration of infrastructure in the interior of our 
country. 
203. Also significant is the fact that Guatemal a and Chinese Taipei have signed a free trade 
agreement which has made it possible to develop and enhance trade betw een the two parties.  Proof of 
this is that in 2009 alone Guatemala increased its exports to Chinese Taipei by 35 per cent, which 
considerably improved our trade balance even t hough it continues to be favourable to our Asian 
partner.  In any case, for Guatemala, the launch of this agreement represents a bridge which has 
provided Guatemalan businesses with the opportunity  to develop in Asian and Pacific markets. 
204. Two weeks ago I had the pleasure of visiting Chinese Taipei and seeing its beauty at 
first hand, and received a warm welcome from its people.  I was pleased to take part in the 
International Food Fair held at the territory's Convention Centre.  There, I witnessed, in a positive 
light, how private companies from Chinese Taipei an d Guatemala are beginning to develop strategic 
alliances so that they can successfully penetrate both markets.  Alliances of this type make it possible 
to promote Guatemalan trade in this Asian terr itory.  For this activity, Guatemala was once again 
provided with the support of the Central America Trade Office (CATO) which has become the main 
vehicle for promoting trade activity be tween Chinese Taipei and Guatemala. 
205. It should also be noted that the synergies between Chinese Taipei and Guatemala are not 
limited to the bilateral sphere.  Within the multilate ral forum of the WTO, both parties work together 
in pursuing and promoting not only free trade bu t a successful conclusion to the Doha Round 
negotiations.  Of particular note is the role pl ayed by Chinese Taipei in the negotiations on the 
establishment of a register of geographical indications  for wines and spirits, and we urge it to continue 
participating actively in the negotiations  and the rest of the Doha Agenda. 
206. Within the context of this trade policy review, we also urge Chinese Taipei to reflect on the 
suggestions and comments made in the Secretaria t's report, by the discussant and by the Members 
today.  We trust that Chinese Taipei will gradua lly take these recommendations on board with a view 
to diversifying its economy and making it less vulnerable to external pressures. 
207. Finally, we congratulate Chinese Taipei on  signing the Economic Cooperation Framework 
Agreement with the People's Republic of China and hope  that this instrument will help to facilitate 
trade relations between both sides of the strait. 
CROATIA 
208. We congratulate Chinese Taipei  on the remarkable overall economic progress done in the past 
years since the first TPR, even in the recent unfavorable economic environment of this strong 
economic and financial crisis and yet without resu lting to trade protectionist measures.  We also 
particularly congratulate Chinese Taipei for the ECFA signed with China last week.   
209. Croatia and Chinese Taipei are geographically very distant likewise economically there is 
also a big difference, while the Chinese Taipei is one  of the major world traders and exporters Croatia 
is a relatively small economy and e xporter.  Therefore we unfortunately cannot praise the volume of 
our trade exchange.  However, in the WTO we co operate very closely and successfully within the 
RAMs Group.  Actually Croatia used to be the Coordinator of the Group until 2007 and Chinese  WT/TPR/M/232 
 Page 31 
 
 
  Taipei has been the Coordinator and guiding successf ully the Group since 2010.  We would like to 
take this opportunity to thank Chinese Taipei for its  hard work, time and dedication in sharing its 
experience and expertise to the benefit of the Group and its Members. 
DOMINICAN REPUBLIC 
210. On reading the Secretariat's report, we noted w ith satisfaction that since its first trade policy 
review in 2006, Chinese Taipei has continued to liberalize trade and investment, mainly in the 
services sector, and that this, together with an out ward-oriented development strategy, has brought it 
rapid economic growth.  In 2009, as a result of the global crisis and the territory's heavy reliance on 
foreign trade, with exports accounting for 72 per cent of the GDP, Ch inese Taipei's economy 
contracted by 1.9 per cent and unemployment rose to 5.9 per cent.  The authorities, however, applied 
expansionary monetary and fiscal policies to boos t domestic demand, while resisting protectionism, 
which, together with the rapid recovery in de mand from neighbouring Asian countries, brought about 
an economic upturn.  Strong growth exceeding 6 per cent is also expected for 2010.  We congratulate Chinese Taipei's authorities on having taken sound acti on to offset the adverse effects of the global 
crisis. 
211. We note, however, that direct government invol vement persists in various sectors of Chinese 
Taipei's economy (e.g. shipbuilding, petroleum, st eel, sugar and banking).  In such sectors it would 
perhaps be advisable to begin reflecting on the desi rability of maintaining these policies in relation to 
the efficiency and competitiveness of some of these sectors which are not strategic. 
212. With regard to trade policy, the Secretariat's report notes that Chinese Taipei's tariffs remain 
to a certain extent complex, in that specific a nd alternate duties are still applied.  We urge Chinese 
Taipei to modify its tariff structure so as to include only ad valorem  tariffs, which ensure greater 
security for trading partners.  What is more, in the agricultural sector in particular, a number of tariffs 
are prohibitive due to their extremely high ra tes;  rice, for instance, is subject to an ad valorem  
equivalent of 1.069 per cent. 
213. We are, however, pleased to note that Chinese Ta ipei has enhanced intellectual property right 
protection by amending its  laws and regulations. 
214. Chinese Taipei is an important trading partner for the Dominican Republic.  The value of 
trade between both countries rose during the period 2005-2009, which was marked by Dominican import performance and to a lesser extent by the pe rformance of exports.  The total value of trade for 
this five-year period was US$2,790.74 million;  th e total value exported by the Dominican Republic 
to Chinese Taipei was only US$131 million, while imports amounted to US$2,700 million, resulting in a sizeable trade deficit of US$2,528 million.  This means that trade in the l ast five years has grown 
at an average annual rate of 35 per cent, and has b een favourable to Chinese Taipei while in deficit for 
the Dominican Republic.  We hope that in the future  this trade will continue to grow, but that the 
deficit will diminish as a result of the greater market penetration of goods and services, most notably 
Dominican tropical agricultural products, and further investment and cooperation. 
215. We should also mention the various regiona l bilateral cooperation programmes under which 
Chinese Taipei provides the Dominican Republic with funding to implement development programmes.  We are grateful for this assist ance, which we view as sign of our close and 
long-standing relationship. 
216. Finally, we would like to congratulate Ch inese Taipei on its recent Economic Cooperation 
Framework Agreement with the People's Republic of  China, which involves a trade value of around 
US$17,000 million. WT/TPR/M/232 
Page 32  
 
  HONDURAS 
217. Between 2005 and 2008, Chinese Taipei recorded  solid economic results, with one of the 
highest per capita GDPs in Asia.  This growth slow ed down in 2009 as a result of the economic crisis, 
but expansionary monetary and fiscal policies, introduced by the authorities to boost domestic 
demand, have enabled the economy to recover quickly.  It should also be noted that at no point has Chinese Taipei implemented protectionist measures to overcome the crisis. 
218. With regard to trade, we are pleased to see in  the Secretariat's report that good progress has 
been made with the regulatory reform programme in  areas such as services, investment and customs;  
steps have been taken to improve regulatory tran sparency and the territory became party to the 
Government Procurement Agreement in 2009.  We also  note that while the services sector is the main 
source of GDP growth and employment, the manufacturing sector has suffered a relative decline, despite continuing to be fundamental to the economy, and agriculture is stagnant. 
219. Within the trade policy framework, Chinese Taipei and Honduras ha ve concluded trade 
agreements favouring increased bilateral trade, the most notable of which was signed in 2008.  For 
Honduras, trade with Chinese Taipei is very importa nt, as demonstrated by the recent visit of our 
Minister for Industry and Trade in June 2010, the purpose of which was to promote Honduran exports 
and investments. 
220. In the first six months of 2010, despite our tr ade balance being in deficit, Honduras saw some 
exports such as shrimp and coffee increase by 100 per cent.  It should be noted that our relations with 
Chinese Taipei go beyond trade, since the territory also provides economic and technical cooperation.  
Honduras also welcomes the Economic Cooperati on Framework Agreement between China and 
Chinese Taipei. 
SWITZERLAND 
221. Looking at Chinese Taipei’s economic history, one can only be very impressed by its strong 
performance over time.  Chinese Taipei’s outward-based economy, relying on openness and 
efficiency brought steady growth and prosperity to  its people and enabled the transformation of the 
Separate Customs Territory of Taiwan, Penghu, Ki nmen and Matsu into a modern industrial economy 
and leading player in the globalized world. 
222. Like others, we obviously recognize that the pe riod since the first TPR of Chinese Taipei 
proved to be challenging for its economy, to say th e least.  As all other WTO Members enjoying an 
open trade regime and heavily de pendent on exports, Chinese Taipei suffered significantly from the 
financial and economic crisis.  In that regard, it is crucial for Chinese Taipei’s economy to take 
measures to correct its structural weaknesses.  Th e importance of diversifying the export base and 
markets as well as to create an even more business fr iendly climate is in this regard fundamental, as 
the discussant eloquently highlighted. 
223. Switzerland does very much appreciate the participation of Chinese Taipei in the multilateral 
trading system.  Its serious efforts to align its trad e policies with the WTO stan dards since it joined the 
Organization in 2001 is a commitment we  are thankful for.  Chinese Taip ei’s active role in all areas of 
the DDA is also very much appreciated by this de legation, given us many opportunities to fruitfully 
collaborate on many fronts. 
224. Switzerland in general and myself in particular  wearing one of my other hats for a few 
seconds, would also like to commend Chinese Taipei’s accession to the GPA in July 2009.  There is 
no doubt that this decision benef its both Chinese Taipei and other GP A parties.  By opening up their 
procurement market, Chinese Taipei helps itsel f above all improving governance and building an  WT/TPR/M/232 
 Page 33 
 
 
  efficient, transparent, open procurement system.  This is a must for any modern, developed economy, 
like the one Chinese Taipei is building up. 
225. To conclude, let me like others, congratulate Ch inese Taipei for the very recent signing of an 
Economic Cooperation Framework Ag reement with the People’s Republic of China.  This is 
undoubtedly a very important step in cross-strait eco nomic cooperation, which we will follow closely.  
Like others, we are eager to learn more about the status and detailed provisi ons of the ECFA in the 
framework of the TPR.    
HAITI 
226. Depending strongly on the global economy, Chin ese Taipei has been affected by the global 
financial crisis.  Its econom ic downturn since the last quarter of 2009 has contracted GPD by 4.1% for 
all of 2009.  Chinese Taipei’s exports declined by more than 27% in the first months of 2009 and 
imports by 30%; unemployment rate is stable at  around 6%.  A return of growth around 4% is 
predicted for the present year thanks  to the Government’s efforts. 
227. Haiti and Chinese Taipei have had for more  than two centuries friendly and necessary 
cooperation. Chinese Taipei has also been ready to provide financial a nd technical assistance to Haiti 
whenever the request is made especially in emer gency cases.  After the earthquake in January 2010 
Haiti has received an important amount in medica l assistance, tents, and clothing in addition to 
substantial cash contributions.  Be yond natural disasters, Chinese Taipei is also very active in Haiti in 
providing infrastructure, agriculture, tourism, employment, health, and food.   
228. Within the WTO Chinese Taipei participates ac tively in a very constructive manner in the 
Doha Round in order to reach a successful conclu sion.  Chinese Taipei participates in different 
negotiation groups such as anti-dumping, informal s ubgroups involved in the services sectors and the 
G-10, among others.  Chinese Taipei has contributed  to the Doha Development Group Special Global 
Fund for technical assistance activities,   to the Speci al Allocations Fund for trade facilitation, and to 
the Special Allocations Fund established to fina nce travel costs for LDC’s delegations at the 
Ministerial in 2009.  Chinese Taipei continues to  provide technical assistance to LDCs Members of 
the WTO and to propose them capacity building programs under the Integrated Framework. 
PANAMA 
229. Even in the midst of the global economic cris is, which had a profoundly negative effect on 
Chinese Taipei, the territory continued showing itsel f to be a true promoter of trade and trade 
liberalization both within the multilateral trading syst em and at bilateral and regional level.  Panama 
considers Chinese Taipei to be an important pa rtner and friend, and in  2003 signed a bilateral 
agreement with the territory.  The benefits of the agreement have been obvious.  Figures for the years 
leading up to the global cr isis show that our bilateral trade grew by at least 70 per cent, and in some 
cases more than 100 per cent.  Trade between our two countries continues to grow, even in the 
post-crisis period. 
230. We wish to congratulate Chinese Taipei and China on the conclusion of their Economic 
Cooperation Framework Agreem ent and hope, like others who have  spoken before us, to learn more 
about this important and historical Agreement. 
231. In the meantime, we are convin ced that this review will strengthen the WTO Membership's 
belief in and recognition of Chinese Taipei's comm itment to the multilateral system, the Doha Round 
and the benefits that can be derived from global trade. WT/TPR/M/232 
Page 34  
 
  NIGERIA 
232. Nigeria is pleased to note that since its last TPR in 2006, Chinese Taipei has further pursued 
trade and investment liberalization mainly in the services sectors, and is currently taking steps to 
restructure its economy and trade by stimulati ng domestic consumption and investment.  Chinese 
Taipei has also maintained sound macroeconomic po licies that have kept inflation low.  As an 
economy that depends heavily on exports recent gl obal economic crisis has impacted on Chinese 
Taipei’s economy.  The authorities of Chinese Taipei have responded with measures and boost 
domestic demand while resisting protectionism.  Th ese measures have helped the economy to recover 
quickly and it is expected to grow by 4.7% in 2010.   
233. Since its last review, Chinese Taipei has conc luded free trade agreements with a number of 
countries and continues or plans negotiations with ot hers.  My delegation is delighted to note that 
Chinese Taipei has made significant contribution to  Aid for Trade and related technical assistance 
activities and has also provided du ty free to some selected imports from LDCs.  These efforts are 
commendable in assisting LDCs and we therefore urge other Members to implement the Ministerial decision on duty free and quota free for LDCs. 
234. We note that since the last review Chinese Taipei has strengthened its IP protection and it is 
presently working to amend its Trade Marks Act.  It will be interesting to know whether the planned amendment will cover geographical indications. 
235. We are delighted to note that Chinese Taipei has recognized the problem associated with 
misappropriation of genetic resources and traditional knowledge and they also agree that the problem 
should be dealt with an advocate technical issues be  clarify beforehand.  Let me remind the Chinese 
Taipei that the clarification work has been ongoing for the past 11 years.  My delegation would like to 
know how Chinese Taipei intends to help address the issues of misappropriatio n of genetic resources 
and traditional knowledge. 
236. As an important WTO Member, Chinese Taipei  has played an active role in the DDA 
negotiations.  My delegation looks forward to  further collaboration with Chinese Taipei. 
CHINA 
237. It is necessary for me to remind some Members of the understanding among Members on the 
nomenclature related to the Member under Review and th e title of its relevant officials.  I hope it is 
just a slip of the tongue since I am still looking forward to a smooth going of this Review.  WT/TPR/M/232 
 Page 35 
 
 
  V. REPLIES BY THE REPRESENTATIVE OF CHINESE TAIPEI AND ADDITIONAL 
COMMENTS 
238. As pointed out by our Discussant, the global economic crisis has revealed the weakness of our 
economy, namely, the over-reliance on export of a few manufactured goods and the dependency on 
one single market.  The Secretariat Report and sever al Members seem to associate this to the reason 
why we suffered during the global economic downturn.   We did recognize this vulnerability and have 
been trying to steer our economic development in a more diversified and dom estic market oriented 
fashion. 
239. We are successful in stimulating domestic dema nd in response to the global crisis.  As the 
global economy recovered in 2009, investment and consumption surged, thus enlarging the 
contribution of domestic demand to GDP.  Net external demand decreased not because of export 
decline but because of the increase of imports.  As  a result, our recent forecast indicates that domestic 
demand will account for 86% of the annual economic growth  of 2010.  This is the first time in recent 
years that we are witnessing a higher contribution to economic growth by domestic market, instead of external demand.   
240. I am of the view that exports have been and w ill most likely continue to be the main growth 
engine of our economy.  Nevertheless, a growing domestic demand will not only balance our growth 
pattern but also strengthen our economic structure to be more resilient to exte rnal shocks such as the 
recent financial crisis. 
241. On the other hand, to diversify our export ma rket, we have drawn up the “New Cheng Ho 
Plan” to be implemented over a 4-year period between  September 2008 and 2012.  This plan aims to 
assist businesses in expanding into emerging markets,  such as South East Asia, Middle East and Latin 
America. This Project consists of trade promotion measures similar to those adopted by a number of 
Members during the global financial crisis and are fully in compliance with WTO rules.  
242. As our exports recovered in the last quarter  of 2009, the implementation of New Cheng Ho 
Plan has brought about preliminary results.  For ex ample, our exports to India, Indonesia, Russia and 
Brazil have been recovering and increasing substan tially since 2009. More importantly, these markets 
now make up an even higher percentage of our to tal export, indicating the diversification of our 
export.   
243. Let me now address the issue of investment e nvironment raised by the Discussant regarding 
our fallen ranking in the World Bank Report.  He mentioned in his statement on Monday that our 
ranking of the “Ease of Doing Business” in the Wo rld Bank Report of 2009 dro pped three positions to 
61
st. However, in the same report for 2010, among the 183 countries assessed, our “Ease of Doing 
Business” ranking jumped to 46th in 2010, up 15 notches.  Especially in the “Starting a Business” 
index, due to a decisive amendment of th e “Company Act”, our ranking improved from 119th place in 
2009 to 29th in 2010.  This is an advancement of 90 places and the main reason that we moved up in 
the overall “Ease of Doing Business” ranking. 
244. Furthermore, as in another survey of the U.S.-based “Business Environment Risk 
Intelligence” (BERI) indicated, we ranked as the 2nd best investment destin ation in Asia and the 4th 
best in the world in the categories of operations, politics and foreign exchange. 
245. According to the statistics of our Investment Commission, inward foreign investment in the 
first five months of this year increased 27.5% in  case numbers and grew 20.3% in investment amount.  
After the successful conclusion of the cross-strait ECFA negotiation, we look forward to attracting 
even more foreign investment in the near future. WT/TPR/M/232 
Page 36  
 
  246. We also like to thank Members for their encouragement and comments regarding further 
liberalization of our investment environment. We  are currently conducting a general review of our 
existing investment restrictions in the “nega tive list”, and will take actions toward further 
deregulation. 
247. Several Members’ interventions touched upon the issue of standards and other technical 
requirements.  I will first address the issue of Techni cal Barriers to Trade in a more general sense then 
respond to a few specific topics such as Ma ximum Residue Limits (MRLs) and BSE. 
248. We appreciate questions raised by Members on issues relating to technical barriers to trade. 
We have provided written responses to each question and will be happy to explain in detail if 
Members need any additional information. 
249. In the past four years, we have made 78 notif ications in accordance with the TBT Agreement.  
With regard to our standardization activities, let me assure you that all our st andards are voluntary and 
the CNS Mark is also voluntary.  Applications fo r CNS Mark are open to both domestic and foreign 
manufacturers.  There are only 221 standards that ar e referenced by technical regulations and thus 
become mandatory.  All of them are aligned with international standards. 
250. With respect to product compliance with mandato ry requirements, we have four conformity 
assessment procedures to ensure th at foreign suppliers of like products have access to our market 
without any discrimination.  Regarding the duplicated  inspection issue raised by certain Members, it 
is currently under review, and we will continue  working with Members via bilateral channels. 
251. To enhance the rate of harmoni zation between our standards a nd international ones, we hope 
that there are channels that we can use to express our needs and concerns in areas where international 
standards could be or are currently being develope d.  As we are not a member of most of the 
international standardizing bodies, such cha nnels are of fundamental importance.   
252. We will continue adhering to principles of the TBT Agreement including transparency and 
non-discriminatory treatment, in preparing and impl ementing related measures, in order to achieve 
better integration into global economy.  
253. In response to questions raised regarding MRLs fo r pesticides, in order to protect the health of 
our citizens, we regulate the use of pesticides in accordance with our domestic law, based on 
international standards, and taking into account  domestic dietary patterns.  Our MRLs are in 
accordance with scientific principles and analy ses. These limits apply to agricultural and food 
products without any discrimination. 
254. Regarding the question about MRLs for Ractopa mine, to the best of our knowledge, the 
Codex Alimentarius Commission has not yet finali zed the MRLs for Ractopamine. We watch very 
closely the development in this area, and are collecting relevant information, including risk 
assessments from other Members. 
255. Regarding the risk assessment concerned by Cana da and the EU, our responses are as follows.  
First, according to relevant codes of Codex and the World Organisation for Animal Health (OIE), risk 
analysis includes not only risk assessment but also risk communication. In dealing with countries with 
reported BSE cases, both risk assessment and communicati on are vital. Like other Members, we also 
need to communicate with the public, including consum ers, scholars, experts, legislators, and other 
interest groups in order to alleviate their concerns. 
256. Secondly, countries currently applying for b eef importation include, among others, Canada 
and the EU Member States.  According to our domes tic laws and regulations, risk analysis shall be  WT/TPR/M/232 
 Page 37 
 
 
  conducted in order to decide whether to open the ma rket for beef importation. This same requirement 
of risk analysis applies to all regions and countri es.  Thirdly, risk assessment is a very specific and 
complicated process, conducted on a case-by-case basis. Therefore, we cannot predict or prejudge the 
timetable and length of each risk assessment case. 
257. A few Members are interested in knowing more about our government procurement 
procedures.  Obviously I will not be able to attend to  all questions.  Instead, let me say a few words in 
response to a few specific questions. First of all,  our government procurem ent regulations are in 
conformity with the GPA.  As for the issues of lia bility regime, liability is a contractual term to be 
negotiated and agreed between the procuring agency and contractor.  It is by no means a regulatory 
requirement, and thus not covered by the GPA. 
258. Secondly, about the issue of using WTO offici al languages for contract specification, we 
follow the GPA requirements and ask the procur ing entities to publish summary notices of the 
procurement in English.  Finally, GPA conformity is  also maintained in the use of the lowest price 
criterion and the time period for submitting tende rs.  Although there’s no obligation that Members 
have to publish tender document in English, we still encourage proc uring entities to publish additional 
descriptive information or attach further documen tation in the summary notice in English.  For 
example, in several large procurement contract s for power plants conducted by our Tai-Power 
Company (TPC), the procuring entity did provide full tender document in English. 
259. The Discussant and certain Members are concerne d that our government’s direct involvement 
in a large number of areas of our economy.  Priva tization of state-owned enterprises has been our top 
priority in trade policies.  Privatization process requi res efforts to ensure sufficient competitions and it 
cannot be achieved without sophisticated planni ng and communications with all layers of our 
constituencies.  While we have endeavoured to implem ent privatization, the pace has not been as fast 
as we would have hoped.  In areas such as steel and shipbuilding, those companies were actually 
privatized. While our government may retain mini mal influence, the government has not involved in 
any way of their daily operations. 
260. The other example is that our Tai-Sugar Company (TSC) does not hold a monopolistic 
position in our sugar market.  However, it possesses a large quantity of public land.  Before those land 
issues and relevant matters can be all settled, comp lete privatization would require more efforts and 
time.  As for public utilities such as electricity a nd water, like many other Members, privatization 
could not be hastened due to their public service na ture and other social and environmental concerns.  
261. Now, I would like to say a few words about a nother important issue: intellectual property 
rights.  As cross-strait trade becomes more intens ive, disputes over IPR application, protection and 
infringement are more likely to occur. Thanks to mutual awareness of the importance of IPR 
protection, both sides signed “the Agreement on Cross-Strait IPR Protection and Cooperation” on 
June 29.  This Agreement aims at enhancing c ooperation of both sides across the strait on protection 
of patent, trademark, copyright and plant variety ri ghts.  More specifically, it recognizes priority right 
of both sides on patent, trademark, and plant variet y.  The Agreement also provides that both sides 
will accept application for plant variety right and w ill consult to expand the scope of it.  To fight 
cross-border illegal activities involving IP rights, we  also established a communication platform for 
competent IP authorities to facilitate cooperation on in formation exchange.  We are confident that this 
Agreement will effectively strengthen IPR protecti on and cooperation between both sides, and thus 
will benefit people of both sides by resolving IPR issues more directly, effectively and efficiently. 
262. Since I am on cross-strait issues, let me take this opportunity to respond to questions 
regarding the Economic Cooperation Framework Agreement, ECFA.  We noticed that almost every 
Member who spoke on Monday wanted to be more in formed of the contents of ECFA.  As for the 
early harvest program for trade in goods, we agree to render zero tariff rates within two years for 267 WT/TPR/M/232 
Page 38  
 
  items of goods (by 8 digits of HS Code). Their total value counted by import statistics in 2009 
amounts to US$2.86 billion, about 10.5% of our tota l imports from China.  Meanwhile, China renders 
zero tariff rates in the same period of time for 539 items of goods.  Their total value counted by 
statistics in 2009 amounts to US$13.84 billion, about 16.1% of our total exports to China. The ratios 
of the items and their trade amounts in the early  harvest programs of both sides are commensurate 
with current cross-strait trade relations.  
263. Regarding the early harvest program for trade in services, we make commitments in nine 
sectors including business services, audio services, commission agents’ services, sporting and other 
recreational services, air transport services and bank-related services.  Meanwhile, China commits 
11 sectors among business services, audio services, hospital services, air transport services, and financial services in banking, insu rance, securities and futures. 
264. The full text of this Agreement and its five attachments are now available on our website.  
Interested Members are welcome to visit our website .  We are currently preparing the English version 
and it will be posted to our website when available.      
265. I have responded to quite a few issues raised  by Members and the Discussant.  I will now 
focus my following remarks on sectoral approaches.  Let me begin with the agricultural sector than 
proceed to the service sector. 
266. In response to Member’s questions regardi ng border measures for agricultural products, we 
would like to respond as follows.  Being a Recently-A cceded Member, we have made very extensive 
commitments in agriculture sector upon our accessi on far beyond those assumed by Members in the 
Uruguay Round. Tariff system, tariff rate, TRQs a nd SSG are all implemented in accordance with our 
accession commitments. 
267. Regarding Members’ concerns about high tariff rates of specific products, these high tariffs 
are actually out-TRQ rates that are based upon tari ff equivalence to reflect the difference between 
domestic and international market prices. However their in-quota tariff rates are ranging only between 
0 and 25%.  All TRQs are administered based on mark et mechanism and in line with the principles of 
transparency, predictability and fairness to pr ovide full market access opportunities to imported 
products. 
268. Fifteen products are subject to Special Sa feguard mechanism according to our accession 
schedule. The trigger volumes of these SSGs are calc ulated in accordance with Article 5.4 of the 
Agreement on Agriculture.  SSGs can only be applied to the out-quota imports. 
269. Our tariff systems are adopted according to our WTO schedule. Non- ad valorem  tariffs 
account for only 7.6% of total tariff lines and consist of two types:  specific tariff and mixed tariff.  
Both types of tariffs are simple in calcula tion, and are transparent and predictable. 
270. With regard to Members’ concern about dom estic support, it is our position that though 
agriculture accounts for only 1.6% of our GDP, we  have to safeguard the multi-functionality of 
agriculture including food security, rural develo pment and conservation of the environment and 
ecology.  Rice is our staple food.  Guaranteed price for rice is designe d to stabilize supply and 
demand for food security purposes.  The government  is currently evaluating the feasibility of 
transforming the current mechanism into a direct pa yment system.  To cope with the market opening 
of rice upon our WTO accession, and to maintain the balance of supply and demand of rice, we 
encourage farmers to set aside their paddy fields.  
271. Furthermore, with the aim of developing a co mpetitive, market-oriented agriculture, we are 
now implementing “Quality Agriculture Developmen t Program”, and “Small Landlords, Large Tenant  WT/TPR/M/232 
 Page 39 
 
 
  Farmers Program”.  These programs will be substant iated by advanced agricultural technologies and 
robust food safety regulations.  
272. On fishery subsidies raised by Members, our  vessel buy-back program aims to align our 
fishing capacity with our ICCAT quota. To reduce fishing capacity while protecting the environment 
and maintaining sustainable fishery resources, all vessels bought back under this program will be 
dismantled.  In order to improve the social security and welfare of fishermen, we provide subsidies of 
marine insurance for small scale and artisanal fi shing vessels weighting less than 100 tons.  This 
information is actually available on the website of our Fishery Administration. 
273. The last agricultural issue is export subsidy. I would like to reiterate that we have no export 
subsidy to agricultural products.   
274. Now let me turn to the services sector.  As I mentioned on Monday, services sector is the 
largest contributing sector to our total GDP and we recognize its importance.  While we endeavour to 
further liberalize our services sector, policy objectives such as sound regulatory system, consumer protection and quality assurance sha ll also be taken into account. 
275. Quite a few Members have raised their interests in or concerns over our policies on services. 
In addition to our written replies, I will just highlight some sectors of the utmost interests to Members.  
On financial services, there is no difference in our financial supervisory requirements between foreign 
insurance companies and domestic insurers.  It is pe rmissible that branches or subsidiaries of a foreign 
insurance company in our territory adopt different fi nancial standards under the request of their parent 
companies, as long as they meet our minimum requirements.   
276. On telecommunications, in general, we have a re lative liberal regime for foreign investors. 
Nevertheless, like many other Members, we still ha ve restrictions on foreign ownership in Type I 
telecom. 
277. On postal and courier services, given that postal services shall be universally available to all 
residents, especially in remote and rural areas, like many other Members, we have reservations in the 
business of delivering letters, postcards or other co rrespondence.  Nevertheless, we are very open for 
courier services, which include deliv ering newspapers, magazines, printed matter and parcels, etc. For 
instance, Fedex, UPS, TNT, and DHL are all operating vibrantly in our market. 
278. On maritime services, to provide a more busin ess-friendly environment in our market, we are 
planning to amend the cap on foreign investme nt proportion on domestic shipping companies from 
33% to 50%. 
279. With regard to Members’ comments that we  must contribute to DDA commensurately with 
our development status, let me say a few words.  It is well established that the development status of 
WTO Members is subject to the rule of self-election by each individual Member.  We have always 
and consistently maintained that our status is that of a developing country Member based on our 
economic development.  Unfortunately, the paragr aph of our working party report cited by some 
delegations on Monday has been misunderstood and ta ken out of context.  This paragraph merely 
confirms that we will not assert the rights of tr ansition arrangements for developing country Members 
under the Uruguay Round Agreement, and that we  will implement the WTO Agreement upon our 
accession.   
280. As the Discussant rightly pointed out on Monday , this TPR gives us an  opportunity of both 
reflecting back and looking forward on our trade polici es.  In line with the needs of various stages in 
our economic development, we have progressively liberalized trade and transformed our economy. As 
an experienced mountain climber myself, I see gr eat similarity between liberalizing trade and WT/TPR/M/232 
Page 40  
 
  climbing a mountain. All great climbers are prudent in each step on their way up.  To tackle a 
mountain of thousands of meters high, clim bers simply cannot rush.  Sound planning and 
implementation with a steady pace are the keys to summit.  This is exactly how I see that trade 
liberalization should also be proceeded.  We will take into account the constructive comments and 
suggestions made by Members this week, and we  look forward to working closely with you.   
DISCUSSANT 
281. First, I would like to thank Mr Deputy Minister Li n and his team for the hard work in replying 
to Members' questions and the very constructive attit ude they have approached this exercise with. The 
additional information you have provi ded today in your statement helped further to clarify some of the 
issues raised during the 1
st day of this review.  
282. I would like start my comments with a look back  on the main messages heard on the first day 
– both positive as well as critical – that Chinese Taipei  could take back home for further reflection.  
283. We heard lot of appreciation to the fact th at Chinese Taipei has pursued for decades an 
outward-oriented development strategy, which coupled  with the progressive liberalization of its trade 
and investment regimes has brought about robust eco nomic growth, transforming Chinese Taipei into 
a modern industrial economy with one of the high est per capita GDPs in Asia. Members also noted 
the adverse impact of the global economic crisis  on the economy but Chinese Taipei's continued 
resistance to resorting to protectionist measures in  response to the crisis was rightly appreciated by 
several Members. Mr. Deputy Minister, you said in your opening statement that the Government has 
recognized the importance of market diversification,  and therefore has endeavoured to encourage our 
businesses to explore new market access opportunity abroad. A global market expansion plan named 
the “New Cheng Ho Plan” and the Economic Vitali zation Package have been introduced. I am also 
encouraged by the recent news that the Chinese Taip ei is about to form a high-level taskforce to 
encourage global investors to participate in Ta iwan’s major public construction projects and key 
emerging industries. These positive steps should indeed help Chinese Taipei to revitalize the economy and to regain economic growth.  
284. Almost all Members naturally took a strong interest in the new Economic Cooperation 
Framework Agreement between Chinese Taipei and Chin a. In this regard it was very useful to hear 
first-hand useful information on the scope, conten t and objectives of the agreement as well as the 
plans for continued negotiations. 
285. Additionally, Members also recognized the steppe d up legislative efforts in IPR protection by 
Chinese Taipei and trade facilitation measures the role Chin ese Taipei plays in trade facilitation talks 
in WTO. Last but not least, Chinese Taipei's role as a donor was also noted since in addition to its 
contribution to aid-for-trade and trade-relate d technical assistance activities Chinese Taipei has 
provided duty-free treatment to selected imports from least developed countries.  
286. However, Members also voiced several concerns  on some of the trade policy measures of 
Chinese Taipei. Among them we heard critical m essages about the remaining barriers in its 
investment regime and some services sectors, govern ment's excessive direct involvement in the key 
sectors of economy, different forms of assistance measu res, stalled privatization, complexity of the 
tariff structure and high tariffs, notably on the ag ricultural products. Some Members pointed out the 
remaining challenges in the implementations of IP R protection, including GI protection. SPS was an 
area that received many questions and expressions of concerns – it was noted by Members that the 
laws and practices of Chinese Taipei on BSE are not OIE compliant and risk assessment takes 
disproportionally long time. On TBT and standa rds the answers reveal the complexity of the 
standardisation process in Chinese Taipei – in so me of the replies there are 12 major regulatory 
authorities listed who in practice have own ru les and practices and sometimes overlapping  WT/TPR/M/232 
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  jurisdiction. Chinese Taipei is indeed following the letter of the GPA, but the spirit of it - opening up 
the procurement market - should remain the real goal that would benefit the economy of Chinese 
Taipei and the global trade. In addition, some delegations encouraged Chinese Taipei to make 
commitments commensurate to its current level of  development and in line with its WTO accession 
undertakings. 
287. As I said on Monday, the Discussant's role in cludes a responsibility of monitoring the quality 
of replies provided by Chinese Taipei to Members'  questions and remarks so let me continue now 
with that assessment. Apparently Chinese Taipei received questions from 22 Members, totaling 345 
questions and there is no doubt that CT has done a great work in replying to them. However, quality of the content of the responses is even more important . Therefore I have to note that some questions in 
certain critical areas remain somewhat vaguely replied e.g. privatization, the entry in force of the new 
tax incentives scheme (SII), the global market e xpansion plan and the definition of government 
enterprises and market liberalization that seems e ffectively translate to self-exempting Chinese Taipei 
from WTO notification obligation. These issues to gether with the remaining concerns mentioned 
above might constitute the messages that Chinese Taip ei needs carefully contemplate about CT back 
home.  
288. In conclusion, this review has given us an oppor tunity to give advice to Chinese Taipei where 
we think it could make improvements to its trade po licy. It has also been a chance to draw advice 
from Chinese Taipei's experiences. With the maintained efforts of improvement in these areas of its 
trade policy, removal of remaining limitations to  investment, and adoption of international best 
practices combined with further structural reform s Chinese Taipei will strengthen its international 
competitiveness and integrate further into global ec onomy. Chinese Taipei seems to be on the right 
path towards its objectives and it will become a reality if Chinese Taipei takes the maximum 
advantage of this exercise and accommodates the rema rks heard in its steps to further liberalise its 
trade and investment policy.  
EUROPEAN UNION 
289. The EU would like to note the precise nature and good quality of the replies to our questions.  
However, in substance we have a few follow-up and additional questions notably on tariffs for 
different sources of renewable energy, organic labe ling, intellectual property, notably on trademarks 
and geographical indications.  As they are quite de tailed we submit these questions in writing through 
the Secretariat and will expect the replies in due course. 
290. Second, the EU would like to continue encour age Chinese Taipei to continue working on 
improving their alignment with international sta ndards, both in terms of TBT and SPS and to duly 
follow the provisions of the GPA both in spirit and in letter.  This would contribute to Chinese Taipei’s further integration into the world economy and improve is trading relationships with third 
countries.  We hope that at the next TPR of Ch inese Taipei we can welcome significantly improved 
record on this. 
UNITED STATES 
291. The United States would like to clarify the Ch inese Taipei response regarding the import 
licensing measures currently applied to certain beef  products, which states that they are based on “a 
special arrangement between the Separate Custom s Territory of Taiwan, Penghu, Kinmen and Matsu 
and the United States”.   The bilateral protocol that specifies the terms and conditions for export of 
U.S. beef and beef products to Chinese Taipei do es not contain any provisions for an import licensing 
scheme for such products.  The referenced import licensing system for certain U.S. beef and beef 
products was unilaterally implemente d and immediately effective upon announcement of the bilateral WT/TPR/M/232 
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  protocol on November 2, 2009.  We respectfully request that Chinese Taipei notify the related import 
licensing procedures, as reflected in the Regulations  Governing Import of Commodities, to the WTO. 
292. We would also like to follow up on questions posed  by Canada on beef regulations.  We have 
read Chinese Taipei’s responses to these questions w ith interest.  The United States would like to note 
that the guidelines of the World Organization for Animal Health (OIE) for BSE provides for the 
importation of meat and meat pr oducts, including offal and ground beef, from countries or zones 
posing a controlled BSE risk if the appropriate tissues  defined as specified risk materials (SRMs) for 
such classification are removed.  It makes no recommendation for banning these products, including 
for a specified time, as a means to  control for BSE.  We ask that  Chinese Taipei please describe in 
more detail how this measure confor ms specifically with OIE guidelines. 
293. We appreciate the additional clarification provide d by Chinese Taipei in their statement today 
regarding Maximum Residue Limits (MRLs).  The United States encourages Chinese Taipei to 
expeditiously formulate and implemen t MRLs so as to avoid any further disruption of trade in certain 
products. 
294. Lastly, regarding rice, we would like to note that we respectfully disagree with Chinese 
Taipei’s statements that they have fulfilled their WTO commitments and remain concerned about 
Chinese Taipei’s domestic price mechanisms.  WTO rules are clear, if imports are facilitated by a 
State Trading Enterprise (STE), the STE cannot impose additional barriers to entry. 
JAPAN 
295. With regard to the ECFA, Japan expects th at Chinese Taipei will make a notification 
appropriately to the WTO consistent with the Ar ticle XXIV of the GATT and the Article V of GATS. 
As we stated on Monday, we would like to cont inue discussing the ECFA in detail at relevant 
committees in WTO or otherwise. 
296. Japan also has some follow-up questions. These are related to clarification with regard to the 
ECFA, the tariffs and tax on the rice alcoholic be verage, and the implemen tation of the amended 
Copyright Act. We will submit these follow-up questions in writing later today.  
REPUBLIC OF KOREA 
297. As the discussant has said this morning, Chinese Taipei’s track record of pursuing an outward 
oriented strategy has been highly successful and has been vital for its economic development. 
However, I would like to take this opportunity to emphasize that desp ite these achievements, 
nonetheless Chinese Taipei is still in the process of de veloping its economy, and this process needs to 
continue. This is a continuing process.  I believe at times this aspect is not given due consideration in 
relevant discussions, and hopefully Members will be reminded of it.  
CHINESE TAIPEI 
298. I would like to make a brief response to Members comments. I do appreciate the EU’s follow-
up questions regarding energy items , intellectual property and also or ganic labelling.  Those energy-
related questions would be answer ed by written replies in due course.  Regarding the U.S. comments 
about agricultural items we do appreciate them, and our colleagues in Taipei and Washington D.C. are 
trying very hard to bring those issues to a satisfa ctory settlement, and I think that we need to discuss 
further bilaterally or multilaterally.  We welcome Japan’s follow-up questions on rice and wine, and 
regarding the ECFA issue I wish that we will have some opportunity to discuss about it bilaterally or 
multilaterally. And I would like to thank the Korean delegation for its good words.  WT/TPR/M/232 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
299. This second Trade Policy Review of Chinese Taipei has enabled us to improve our 
understanding of recent developments in its trade an d related policies, and the challenges it now faces.  
Our discussion has clearly benefited from the active participation of the Chinese Taipei delegation, 
led by Mr. Sheng-Chung Lin, Deputy Minister of Ec onomic Affairs, as well as from the contribution 
of our discussant, Mr. John Clarke, Chargé d'Affa ires of the EU, and the numerous interventions by 
Members.  Chinese Taipei's prompt response to the large number of questions was very much appreciated. 
300. Members congratulated Chinese Taipei on it s successful outward-oriented development 
strategy, which had brought about ec onomic growth and thus prosperity.  They praised Chinese Taipei 
for avoiding protectionist measures in response to the recent economic downturn caused by the global 
financial crisis.  Members commended Chinese Taip ei for responding appropriately by implementing 
fiscal and monetary stimulus.  They welcomed th e economy's strong recovery already under way in 
2010.  Members also acknowledged Chinese Taipei's ge nerally open trade and investment regime, and 
welcomed its pursuit of further trade liberalizati on during the review period, particularly in the 
services sector, as well as its achievements in the ar eas of regulatory reform and transparency. 
301. Members noted that Chinese Taipei remains heavily dependent on a few manufactured 
exports and that this left it vulne rable to sharp contractions in glob al demand, such as had occurred in 
2008-09.   They were interested in knowing how Ch inese Taipei intends to diversify its economy and 
promote the development of the services sector and high-tech manufacturing as the new engines of 
economic growth.  Members were also interested to  hear from Chinese Taipei of any plans it might 
have for further structural reforms aimed, for example, at focussing more on domestic demand, 
stepping up privatization, and improving the investment  climate, so as to ensure sustained growth.    
302. Members commended Chinese Taipei for, and sought more information on the recently 
concluded Economic Cooperation Fr amework Agreement (ECFA) with China.  They applauded 
Chinese Taipei's active participation in WTO work  and in furthering the ongoing multilateral trade 
negotiations agenda in many areas.  Members were  also pleased with Chinese Taipei's continuous 
efforts to align its trade policies to WTO comm itments, particularly its recent accession to the 
Government Procurement Agreement.  Members en couraged Chinese Taipei to make commitments 
commensurate with its current level of developm ent in line with its WTO accession undertakings.  
Members expressed their appreciation of Chinese Taip ei's work and support in the areas of aid for 
trade, trade facilitation and trade-related technical assistance. 
303. While acknowledging Chinese Taipei's open trade regime, Members noted the lack of tariff 
reductions during the review period as well as the comp lex tariff structure and high rates on certain 
agricultural products. They encouraged improvements in this area.  Members expressed concern over, 
inter alia , the low and falling share of domestic standa rds aligned to international standards.  
Members raised questions on Chinese Taipei's SPS regime.  They commended improved protection of 
intellectual property rights; nevertheless, some urge d Chinese Taipei to step up its enforcement efforts 
in certain areas such as internet piracy, illegal text copying, and counterfeit pharmaceuticals.   
304. Members noted that, against the background of c ontinuing liberalization in other sectors, and 
despite its minor role in Chinese Taipei's econom y, agriculture continues to receive significant 
protection in the form of high tariffs, mostly non-
ad valorem , which tend to conceal relatively high 
rates of protection, tariff-rate quotas, special safeguard measures, and several domestic support 
measures.  In this respect, Members urged Chinese Ta ipei to step up efforts to further liberalize its 
agriculture sector by, inter alia , simplifying the tariff and making it more transparent by using 
ad valorem  rates, and reducing trade-distorting support measures.  Members also encouraged 
Chinese Taipei to introduce stronger disciplines in the area of fisheries subsidies, including the WT/TPR/M/232 
Page 44  
 
  elimination of those subsidies that contribute to  over-fishing.  As regards the manufacturing sector, 
Members enquired about the specific nature of th e incentives provided under the recently enacted 
Statute for Industrial Innovation.  
305. Members acknowledged Chinese Taipei's conti nued steps during the review period to 
liberalize trade in services and improve the sector's regulatory framework.  Nonetheless, they noted 
that several informal barriers and investment rest rictions were still in place in certain subsectors, 
while in others government intervention remained  substantial.  Hence, Members encouraged 
Chinese Taipei to undertake further liberalizat ion in areas such as financial services, 
telecommunications, and transport services, and to incorporate unilateral liberalization measures 
already undertaken into future offers in the ser vices negotiations.  Members also enquired about 
Chinese Taipei's strategy to increase the competitiven ess of its services, and about concrete plans to 
develop healthcare as well as cultural services.  Memb ers invited Chinese Taipei to review remaining 
restrictions in areas such as qualification and licensing requirements.    
306. This successfully concludes our second Review of Chinese Taipei.  The large number of 
advance questions and the many interventions indicat e the important role Chinese Taipei plays at the 
WTO.  I would once again like to thank the Chinese Taipei delegation for their efforts, the discussant 
for his comments, and Members for contributing to what has been a very en lightening two days of 
discussions. 
 
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