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EU Statement at the Trade Policy Review of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, 7 November 2023

07.11.2023 EU mission to the WTO in Geneva - Press and information team

Statement delivered by Deputy Permanent Representative, Hiddo Houben

On behalf of the European Union, I would like to extend a very warm welcome to the Delegation of Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, led by Deputy Minister Mr. Chern-Chyi CHEN (Ministry of Economic Affairs). I was privileged to be invited to Chinese Taipei as part of the Visitors Programme and I would like to use this opportunity to thank Chinese Taipei for its hospitality. Let me extend my appreciation to the Discussant, Ambassador H.E. Raul CANO RICCIARDI (Paraguay) for his insightful comments, and to the WTO Secretariat and Chinese Taipei for their respective reports which form a very good basis for discussion.

Like others have said before me, Chinese Taipei enjoys full and equal rights and obligations of a WTO Member, including the right to chair committees, and is a close and strategic partner of the EU. This partnership is based on shared values and principles such as democracy, the freedom of expression, the rule of law, the protection of human rights, good governance, multilateralism and open market economies. Chinese Taipei's per capita income fifty years ago was that of a low income developing country. Since then, it has succeeded in becoming one of the world's most successful and vibrant economies with a world class high-tech sector on the back of sound government policy, a highly dedicated and inspirational workforce, and openness to the outside world. Twenty years ago we called Hong Kong, Singapore and Chinese Taipei the Asian tigers. I remember working for a Commissioner who suggested that we should no longer refer to these three as emerging markets but call them the emerged markets instead, thanks to their successful economic policies.

These values have also contributed to making the EU Chinese Taipei's fourth largest trading partner, and have made the EU Chinese Taipei's largest foreign investor. The EU accounted for 36,3% of inbound FDI in 2022, with a cumulative stock of €52 billion. Chinese Taipei has also secured a key role in global and regional supply chains, especially in information technology products, such as semiconductors.

The EU and Chinese Taipei continue to strengthen this partnership through our annual dialogues on trade and investment, as well as through events bringing together our businesses. This year we hosted both the European Innovation Week and the European Investment Forum in Chinese Taipei. We are grateful for Chinese Taipei's support in carrying out these events, and we look forward to continuing to strengthen the trade and investment links between our two economies in concrete ways.

Moreover, we welcome Chinese Taipei's own efforts at diversifying its economy, for example through its New Southbound Policy. We have recently seen an increase in investments in the EU from Chinese Taipei. Given Chinese Taipei's system of screening foreign investments, both inward and outward, some of our questions touch on these issues.

Other questions relate to areas where our exporters and investors continue to face a few issues, and where we believe Chinese Taipei can and ought to do a little bit more in accordance with its WTO obligations. This concerns, in particular, sanitary and phytosanitary (SPS) measures and offshore wind power investments.

In the area of SPS, the EU in particular seeks answers regarding the duplicative procedures that Chinese Taipei applies even when EU Member States have already been recognised as free of certain diseases by the World Organization of Animal Health (WOAH). These complex procedures cause concern to EU businesses and disrupt EU meat exports. The EU thus kindly urges Chinese Taipei to align with international standards in this area and to speed up its review of pending applications. Other important questions in this area relate to regionalisation.

On offshore wind, the EU has conveyed some concerns by the multiple instances of local content requirements that Chinese Taipei continues to maintain. The EU has asked for clarifications on whether Chinese Taipei is considering any further changes as such local content requirements appear to be inconsistent with WTO rules.

Since the last TPR of Chinese Taipei in 2018, the global economy has faced new challenges, emergencies and threats. In this context, maintaining and reinforcing the rules-based multilateral trading system has become even more important. The EU therefore highly appreciates Chinese Taipei's commitment to the WTO and its active role in the WTO reform work.

We welcome Chinese Taipei's participation in the successful outcome of the fisheries negotiations at MC12 and underlines the importance of finalizing its ratification of the agreement as soon as possible. In the context of the ongoing phase 2 negotiations, the EU recalls that Chinese Taipei stated in its last TPR that it would not claim the special and differential treatment in WTO negotiations.

I would also like to extend an invitation to Chinese Taipei to join the Multi-Party Interim Appeal Arbitration Arrangement (MPIA).

The EU also welcomes, Chinese Taipei's active role in the e-commerce Work Programme, as well as its contributions to the various joint statement initiatives, including on e-commerce, domestic regulation and investment facilitation. Moreover, Chinese Taipei's work in the context of the MSME initiative and the Trade and Environmental Sustainability Structured Discussion (TESSD) initiative is very much appreciated.

Finally, we would like to thank Chinese Taipei for the responses to the questions we have previously submitted in writing.

On behalf of the EU, I wish the delegation of Chinese Taipei the utmost success during its Trade Policy Review.