RP, Taiwan set talks on ‘super export corridor’

The Philippines and Taiwan are scheduled to start formal negotiations in November on a "super export corridor" between the special economic zones of Clark and Subic in the Philippines and Kaoshiung in Taiwan, according to Antonio I. Basilio, resident representative of the Manila Economic and Cultural Office (MECO).

The "super export corridor", Basilio explained, will allow automatic, parallel registration of locators in the special economic zones to enjoy similar incentives and benefits and allow the free movement of goods, human resources and exports.

At the same time, the arrangement would allow Taiwan to tap into the ASEAN Free Trade Agreement (AFTA) and the ASEAN + 3 arrangement with Japan, China and Korea.

Basilio explained that the "super export corridor" was initially discussed during the time of former Trade and Industry Secretary Juan B. Santos and has continued under the new term of Trade and Industry Secretary Peter B. Favila.

Formal negotiations, Basilio said, is scheduled to start in November during the Joint Economic Commission (JEC) meeting between the two countries to be held in Subic.

Barring any complications or disagreement, Basilio projects that the "super export corridor" arrangement could be implemented by next year.

The benefit of such an arrangement for the Philippines, Basilio said, would be more investments from Taiwan, more employment and the transfer of manufacturing technology, specifically optoelectronic technology which involves the manufacture of liquid crystal displays, polymers and semiconductors.

At present, there are about $1.5 billion registered Taiwanese investments in the Philippines, but the figure, Basilio said, may be slightly higher because there has been a significant increase in small

Taiwanese investments in the agriculture and aquaculture sector.

Unfortunately, Basilio admitted, the Philippines only accounts for 11.1 percent of total Taiwanese foreign direct investments in the region with Singapore still getting the lion’s share or 44.5 percent of Taiwanese FDIs.

Vietnam accounts for 17.2 percent and Thailand, 13.8 percent, slightly ahead of the Philippines in attracting Taiwanese FDIs.

According to Basilio, the Philippines’ failure to attract more investments is due to its deteriorating human resources capability, loss of competitiveness in terms of land lease, power, water and even shipping costs.