Taiwan pushes for more access to RP market

Taiwan continues to aggressively negotiate for increased market access to the Philippines (and eventually to the ASEAN) in the ongoing talks between the Philippines and Taiwan for a special economic corridor between the two countries.

Taiwan specifically is seeking a lowering of the 40 percent local content requirement to 25 percent and further tariff cuts for certain big volume, high tech products such as optical discs.

The Philippines, on the other hand, is seeking a liberalization of the movement of natural persons.

Romulo Manlapig, Philippine special trade representative to Taiwan, disclosed that a favorable agreement is shaping up on the movement of natural persons as it would facilitate the training and job recruitment of both Filipino and Taiwanese workers.

However, agreement on market access issues, Manlapig admitted, would take more time and would need the approval of the Tariff and Related Matters (TRM) committee.

Visiting Taiwan Vice Minister of the Ministry of Economic Affairs Fadah Hsieh yesterday expressed optimism on overcoming "all challenges very soon."

He commented that "if the economic corridor arrangement between the Philippines and Taiwan can be on the horizon in the near future, then we strongly believe that combining our bilateral resources and working in partnership will generate substantial profit for both countries."

Hsieh therefore urged both parties to "put extra effort into examining regulatory environment covering cost of production, investment, incentives, taxation, harmonization of registration, documentation procedures and so on.

The Philippines and Taiwan last year had signed a memorandum of understanding (MOU), particularly  between the Subic Bay Metropolitan Authority (SBMA) and the Clark Development  Corp. (CDC) of the Philippines and the Export Processing Zone Administration of Taiwan, to establish a special economic corridor.

Based on the signed MOU, the Philippines and Taiwan agreed to enhance and facilitate trade in goods, cooperate in the movement of natural persons, coordinate rules and regulations on finance, shipping vessels and airlines, utilities and registration requirements.

In enhancing and facilitating trade in goods, the Philippines and Taiwan still have to negotiate the following:

1. Secure preferential tariff arrangements for the products exported out of Subic, Clark and EPZs in Taiwan to other economies of the world.

2. Formulate and implement, where possible and approriate, rules of origin (ROO) as would stimulate the trade being undertaken by Subic, Clark and EPZs in Taiwan.

3. Permit products of mutual interest produced in Subic and Clark to enjoy preferential access to include lowering of local content requirement.

4. Foster cooperation between the customs and quarantine authorities of Subic, Clark and EPZs in Taiwan to facilitate trade.

5. Foster cooperation between relevant agencies to prevent the occurrence of non-tariff barriers to trade, while respecting the legitimate prerogatives of agencies to implement valid non-tariff measures and sanitary and phytosanitary standards.

On the movement of natural persons, the Philippines and Taiwan would have to negotiate on allowing intra-company personnel movement between Subic, Clark and EPZs in Taiwan and issuance of visas with a mutually desired validity period of 90 days.

On finance matters, the Philippines and Taiwan would have to consult with their respective monetary agencies, central banks and private financial institutions, within the confines of domestic rules and regulations, measures to develop banking and financial operations within Subic, Clark and EPZs in Taiwan.

Both countries also agreed to work on establishing direct sea and air links between Subic and Kaohsiung and the Diosdado Macapagal International Airport and Subic Bay International Airport to Kaohsiung and Taipei.

Lastly, the SBMA, CDC and the EPZA of Taiwan would have to agree on the mutual recognition of registration of locators in the respective EPZs.