PRESS RELEASE 
 
PRESS/TPRB/332 
7 July 2010 
 
(10-3739) 
TRADE POLICY REVIEW: SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN 
AND MATSU 
Economy would improve with more flexibility and more 
competitiveness 
An outward-oriented development strategy has brought rapid growth and prosperity to the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), transforming it into a modern industrial economy and a leading exporter of information technology (IT) 
products, according to a WTO Secretariat report on the trade policies and practices of Chinese 
Taipei.   
Since its previous Trade Policy Review, in 2006, Chinese Taipei has pursued further trade and 
investment liberalization, mainly in the services sector, and is currently taking steps to restructure its economy and trade by stimulating domestic consumption and investment. It is also attempting 
to improve the investment climate in order to attract higher inward direct investment.  
 The reports says that to strengthen international competitiveness and attract inbound direct 
investment, Chinese Taipei would need to undertake  further structural reforms in order to improve 
the economy’s flexibility in responding to domestic and international challenges, including the improvement of cross-strait economic relations, removal of remaining informal barriers to 
investment, and adoption of international best practices.  
 It also says that a bilateral Economic Co-opera tion Framework Agreement (ECFA) with China could 
considerably improve cross-strait relations, and is vital for ensuring the competitiveness of 
domestic industries, further integrating Chinese Taipei into the world economy and attracting inward investment.  
 
The report, along with a policy statement by the Government of the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu, was the basis for its second Trade Policy Review (TPR) by the 
Trade Policy Review Body (TPRB) of the WTO on 5 and 7 of July 2010. 
 At this meeting, the Chair, Turkey’s Amba ssador, Mr. Bozkurt Aran declared that “ Chinese Taipei 
successfully concluded its second Review. Members congratulated Chinese Taipei on its successful 
outward-oriented development strategy, which had brought about economic 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 
Taipei for responding appropriately by implementing fiscal and monetary stimulus. They welcomed the economy’s strong recovery already under way in 2010 ”.  
 PRESS/TPRB/332 
Page 2 of 2 
 
END He also added that “  Chinese Taipei remained heavily de pendent on a few manufactured exports 
and that this left it vulnerable to sharp contra ctions in global demand, such as had occurred in 
2008-09.  Members were interested in knowing how Chinese 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 re forms aimed, for example, at focussing more on 
domestic demand, stepping up privatization, and improving the investment climate, so as to ensure sustained growth ”.   
 
The following documents are available in MS Wo rd format on the WTO web-site. They can be 
downloaded at http://www.wto.org/english/ tratop_e/tpr_e/tp332_e.htm  
• Secretariat reports 
> Contents and summary observations  > Economic environment  
> Trade and investment regimes  
> Trade policies and practices by measure  > Trade policies by sector  
> Appendix tables  
• Report by the Government of the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu 
• Chairperson’s concluding remarks  
• Minutes of the meeting (available appr oximately six weeks after the meeting). 
Note 
Trade Policy Reviews are an exercise, mandated in the WTO Agreement, in which member 
countries” trade and related policies are examined and evaluated at regular intervals. Significant 
developments that may have an impact on the global trading system are also monitored. For each 
review, two documents are prepared: a policy stat ement by the government of the member under 
review, and a detailed report written independently by the WTO Secretariat. These two documents are then discussed by the WTO”s full membership in the Trade Policy Review Body (TPRB). These 
documents and the proceedings of the TPRB”s meetings are published shortly afterwards.  
 Print copies of the TPR publications are available for sale from the WTO Secretariat, Centre William 
Rappard, 154 rue de Lausanne, 1211 Genève 21 and through the on-line bookshop at 
http://onlinebookshop.wto.org/shop/articles.asp?Id_Rayon=38
 
or follow this path :  
www.wto.org >resources > publications > trade policy reviews  
 The TPR publications are also available from our co-publisher Bernan  
Press, 4501 Forbes Boulevard, Suite 200, Lanham, MD 20706-4346, United  
States. Please call 1-800-865-3457 or e-mail: customercare@bernan.com.” 
Next reviews: 
The Gambia: 14 and 16 September 2010 
Honduras: 20 and 22 September 2010 
United States: 29 September and 1 October 2010 
 
For a full list of previous trade policy reviews and the full programme of future reviews go to 
http://www.wto.org/english/trat op_e/tpr_e/tpr_ e.htm#reviews 
or follow this path : www.wto.org > trade topics > trade policy reviews