ECCT Applauds Improvement of Taiwan’s Investment Environment

　　On May 12-13, the Council for Economic Planning and Development (CEPD) held a meeting with the European Chamber of Commerce Taipei (ECCT) to discuss more than 70 topics raised in the ECCT’s 2004-2005 Position Paper. Vice Chairperson Thomas M.F. Yeh of the CEPD and ECCT Chairman Dirk Sanger jointly presided over the meeting. The ECCT applauded the government for the progress that had been achieved on the various topics over the past year. The ECCT’s pharmaceutical industry representative was especially effusive in his praise of the government’s efforts toward the banning of fake pharmaceuticals and the protection of data exclusivity.

　　ECCT statistics show that its membership has grown 50% over the past two years. Company members have topped 300 for the first time and individual members have exceeded 500, indicating that the improvement in Taiwan’s investment environment has brought an ongoing increase in European investment on the island.

　　During the two-day meeting, the two sides discussed the topics of government procurement, the auto industry, product certification, finance, intellectual property, transportation and shipping, and logistics, etc. Following are the key points of the discussions:

　　1.Participation in government procurement projects: ECCT affirmed that the government had revised its procurement system in line with international norms and standards in such areas as the ceiling on responsibility for contracting parties and compensation for damages, but also expressed the hope that before it becomes a member of GPA, Taiwan will continue helping to reduce restrictions on entry into the market by foreign companies. CEPD Vice Chairman Yeh emphasized that ECCT should help Taiwan become a GPA member at an early date, and that once Taiwan became a signatory, it would adhere to GPA regulations and carry out a reciprocal opening of its government procurement market to other signatory countries.

　　2.Automobile certification: In regard to the ECCT suggestion that Taiwan emulate the EU mechanism and establish a single automobile inspection and testing window for noise, emissions, and safety testing, the Europeans will provide information on the EU’s methods and the Ministry of Transportation and Communications will carry out a feasibility study on the subject.

　　3.Banking and insurance: In regard to the simplification and integration of the report forms and procedures required of financial institutions, the “Single Window for Financial Supervisory Data Reporting” now under construction will go on line in January 2006. During the meeting it was also suggested that the authorities further consider adopting a differentiated management method and allow banks with good performance to use simplified reporting forms so as to provide encouragement and save on banking costs. In regard to the graded management guidelines for the examination of insurance products, the Financial Supervisory Commission agreed to review the possibility.

　　4.Human resources: CEPD held a number of coordination meetings over the past year about mainland Chinese business people coming to Taiwan, and much progress has been made. Once the authorities have given their approval for a multinational company to bring mainland Chinese personnel to Taiwan, there is no limit on numbers. The time required by different agencies to process such applications differs, however, creating difficulties for foreign companies. In regard to whether the identification and educational documents of the spouses and children of foreigners sent to Taiwan by foreign companies require overseas notarization or certification, this is a general policy issue. Vice Chairman Yeh promised to convene a coordination meeting in the near future to clarify the various issues faced by mainland Chinese personnel coming to Taiwan.

　　5.Telecommunications: To promote the development of the third-generation (3G) telecommunications industry, the Ministry of Transportation and Communications has completed a draft revision of the Statute for Upgrading Industries to include 3G enterprises within the category of emerging industries eligible for five-year tax holidays. The Executive Yuan gave preliminary approval to the draft revision on May 12.

　　6.Shipping: Customs will produce a feasibility report on the electronic transmission of overlanded and shortlanded cargo report within three months.

　　7.Intellectual property rights: This is an issue to which the government is paying close attention. The IPR Police has been established and a special court is planning to be set up to accelerate the investigation and prosecution of counterfeiting cases. In addition, the Intellectual Property Office implemented the Implementation Plan for Strengthening Preventive Measures Against Internet Infringement on May 1 in order to strike forcefully against Internet infringement and the sale of fake name-brand goods over the Internet. In regard to other newly raised issues such as whether the use of trademark names by different industries and the use by department stores of quality products as giveaway marketing items violates the Fair Trade Law, ECCT was told during the meeting that complaints could be submitted to the Fair Trade Commission.

　　In regard to other issues such as the opening of Taiwan to the import of mainland Chinese products and the establishment of offices in Taiwan by mainland Chinese airlines, Vice Chairman Yeh stressed that such issues involved the overall political environment and that advancements would come only with time. For other issues—those that involve current policy and can be addressed, but that have not yet been resolved—CEPD will continue coordinating with the related ministries and pushing in the direction of liberalization.

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