Effects
of Assistance Measures for Industry Clustering (Towel, Sock and Shoe Industries)|
2008/1/24 - Industrial Development Bureau, MOEA
Due to the rising cost of labor, land and equipment, some enterprises in
traditional industries have been shifting investment to lower cost areas, such
as China or Vietnam. Companies in these industries have also been under
increasing pressure from cheap imports since Taiwan joined the World Trade
Organization, resulting in sharply lower production levels, reduced domestic
market share, and falling employment. The government has therefore been
assisting traditional industries to upgrade their operations over the past two
years. Such assistance has produced good results in the towel, sock and shoe
industries, helping enterprises in these sectors to upgrade operations and add
jobs.
The "Assistance Mechanism for Traditional Industries Facing
Difficulties" ratified on March 30, 2006, enhances assistance to weak
traditional industries. The mechanism has been applied successfully in assisting
the towel, sock and shoe industries. The assistance measures under the mechanism
include the following:
1.Purchasing priority on MIT (Made in Taiwan) products.
2.Adopting WTO Trade Remedy Measures:
-Levying anti-dumping duties of 86.6~204.1% on towels originating from China
since June 1, 2006
-Levying anti-dumping duties of 43.46% on six specific types of shoe originating
from China since March 16,2007
3.Cracking down on the use of false labeling of place of origin: Supervising
county governments to strengthen investigation on product labeling on the market
4.Assisting the industry in promoting locally made products in the domestic
market
5.Enhancing training
6.Assisting the industry to improve technology and design capabilities so as to
increase the added-value of their products
7.Assisting the industry to apply for the funding through special government
programs
8.Encouraging the industry to purchase equipment to boost productivity
9.Encouraging companies to improve manufacturing processes and the efficiency of
quality control
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