TRADE POLICY REVIEW
1 INTRODUCTION
As a key link in global
supply chains, the Separate Customs Territory of Taiwan, Penghu, Kinmen and
Matsu has responded to the global economic downturn in the wake of the last
financial crisis by continuing our efforts to liberalize trade and enhance
trade facilitation measures between 2014 and 2017. Despite these efforts, slow
global recovery has led to insufficient global market demand, and this was reflected
in the decline of trade growth in both 2015 and 2016. However, trade grew
significantly in 2017.
In order to revitalize the
economy, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu
actively implemented the Four-Year National Development Plan (2013-2016). This
plan's main objective was to stimulate economic momentum by accelerating
systemic adjustments, relaxing regulations, hastening various national
structural reforms, and increasing the potential for economic growth. Subsequently,
key policies, namely the Four-Year National Development Plan (2017-2020), the
New Southbound Policy and the "5+2" Industrial Innovation Plan, were
also formulated and are being implemented to accelerate various structural
reforms and advance the transformation of economic structures. With the
sustained implementation of these plans, the Separate Customs Territory of
Taiwan, Penghu, Kinmen and Matsu expects to continue to improve its internal
economic structures and increase its potential for economic growth.
Furthermore, the Separate
Customs Territory of Taiwan, Penghu, Kinmen and Matsu has worked to improve the
domestic regulatory environment for doing business during the review period.
According to the World Bank's Doing Business report, the ease of doing business
ranking for the Separate Customs Territory of
Taiwan, Penghu, Kinmen
and Matsu improved
from 19th place in
2014 to 11th place in 2016; in 2017, however, its ranking dropped to
15th place, revealing that there is still some room to improve the
domestic business environment. Regarding regulatory reform, the government has
also stressed the importance of increasing the transparency of the legal
framework, to further improve the domestic environment for doing business.
During the review period, one
key legislation milestone was the Financial Technology Development and
Innovative Experimentation Act
(the Act), which
came into force
on 30 April 2018. This Act
was enacted to establish a Fintech innovative experimentation mechanism and
create a safe environment for Fintech R&D and pilot trials of the financial
industry and related sectors, while maintaining financial market order and
protecting consumers' rights. This Act is applicable to experimenters that use
innovative methods to engage in any financial services business requiring
approval from the Financial Supervisory Commission (FSC). Natural persons,
proprietary businesses, partnerships, and legal persons, as well as
non-residents through an agent, all may apply to conduct innovative
experiments. The government thus hopes to further enhance innovation in the
financial services sector.
Despite the economic
challenges faced by many WTO Members in the last four years, the multilateral
trading system has once again proven to be a valuable mechanism underpinning
opportunities for growth. As such, during the review period, the Separate
Customs Territory of Taiwan, Penghu, Kinmen and Matsu has continued to
participate actively in the regular work of the WTO and has been closely following
the development of economic cooperation and integration at the regional level.
As a major beneficiary of economic globalization, the Separate Customs
Territory of Taiwan, Penghu, Kinmen and Matsu is always willing and ready to
contribute to Aid-for-Trade and other assistance initiatives by making
financial and other forms of contributions and assistance to developing country
members, as well as to related WTO agencies.