According to Aquino, the three major hurdles would involve establishing an electronic export processing system between the special economic zones, labor issues and complex financial issues.
The two countries, Aquino said, may have a clearer picture of the proposed economic corridor next month when initial discussions take place.
Aquino, who visited Taiwan early this month to "explore" the possible economic corridor, revealed to The STAR that Taiwanese officials were initially interested in a Free Trade Agreement (FTA) with the Philippines.
Unfortunately, Aquino said, a bilateral FTA was quickly ruled out because of its complexity.
Instead, the feasibility of an economic corridor between the special economics zones of Subic and Clark and Kaohsiung was agreed upon to be more likely.
However, Aquino admitted that three major hurdles have to be overcome.
First is the need to establish an electronic export processing link between the special zones.
While Taiwan has the capability, Aquino acknowledged the shortcoming of the Philippine side.
The Trade Official, however, stressed that such a hurdle can be overcome.
Labor issues, specifically with regard to visa issues, Aquino said, would be ticklish.
But the biggest hurdle, Aquino warned, would involve financial issues such as the need to allow more Taiwanese banks to operate in Subic and Clark.
Unfortunately, under present banking rules, Aquino said, foreign bank branching is limited and liberalization would require amendment of existing regulations.
Aquino had earlier said that a possible economic corridor with Taiwan must include not only Subic, but also Clark.
Aquino explained that Clark must be included in any economic corridor with Taiwan since Subic no longer has any space to expand.
Even though Subic wants to annex the adjacent Bataan Export and Technology Park (BETP), Aquino cited the difficulty of the BETP’s mountainous terrain for industrial parks.
The Philippines and Taiwan hope to start negotiations before the end of the year for a special economic corridor between the Subic and Clark and the port city of Kaohsiung which would allow the free movement of goods, capital and people between the two points.