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2013 Position Papers

Presented by:

Chris James Chairman

EUROPEAN CHAMBER OF COMMERCE TAIPEI

Taipei, 12 November 2012

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• 2013 OverviewRecommendations for priority policies and measures

• 2011-2012 Position Papers recap22 committees raised 112 issues

• 2013 Position Papers21 committees raised 118 issues

• Concluding remarks

2013 Position Paper launchAgenda

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Theme: Unleashing the Taiwan Tiger

A Path to Economic

Prosperity

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• Total Jan-Sep’ 2012 exports -3.9% year-on-year

• PMI 47.8 in October - further contraction ahead

• EU Taiwan trade: – Down from 15th to 19th trading partner in 2011– Exports to Europe -8% in 1H12– EU imports to Taiwan -11.6% in 1H12

The Business Climate

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• Competitiveness rankings moving in the right direction:– WEF Global Competiveness: 13th

– IMD: 7th

• World Bank’s 2013 Doing Business: 16th (up from 25th)– Getting electricity: 6th

– Dealing with construction permits: 9th – Resolving insolvency: 15th

– Protecting investors: 32nd

– Registering property: 32nd

– Paying taxes: 54th

– Getting credit: 70th

– Enforcing contracts: 90th

The Business Climate

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Action required in 2 main areas:

1. Competitiveness2. Sustainability

How to unleash the Taiwan Tiger

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RMB market promotion

• RMB market promotion is an opportunity for Taiwan

• 6 recommendations by the Banking committee to boost Taiwan’s status as an RMB offshore financial centre

Competitiveness

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International standards

• Many European test standards are not accepted and additional testing is required.

• Key items still not open to foreign test laboratories.

Competitiveness

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PRC import ban• Little progress made on items

manufactured by European firms over the past year.

• The ban fosters protectionism and deprives businesses and consumers of superior quality products at reasonable prices.

Competitiveness

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EU-Taiwan TEM• 2012 update study shows case for TEM even

stronger than before

• TEM would boost annual EU exports to Taiwan and benefit manufacturers of motor vehicles, electronics & machinery, beverages, clothing and textiles.

• Gains from the removal of non-tariff barriers.

Competitiveness

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Address environmental

concerns by: • Passing Greenhouse gas

legislation• Improving energy efficiency• Aggressive installation of

renewables• Making Life cycle cost the

guiding principle for public infrastructure

Sustainability

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Last year, 22 committees raised 112 issuesOver the past year:

• 3 issues have been completely resolved.• Sufficient progress has been made in 4 issues and they have

therefore not been raised again.• 9 issues have been partially resolved but given the unresolved

sub-issues under the same heading, the issues are listed again this year.

• 26 issues have been removed at the committees’ discretion.• 77 issues from last year remain unresolved and are repeated.

• 41 new issues have been raised.

Review of 2013 Position Papers

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3 Issues were resolved

Asset Management •Rules relaxed to allow Securities Investment Trust Enterprises’ (SITEs) personnel to engaged in discretionary investment.

Insurance •A financial ombudsman has been set up

Better Living•The NCC has cracked down on pirate radio stations

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Progress made on 13 issues

• 4 issues raised last year by the Asset Management, Better Living and Tax committees saw sufficient progress.

• Another 9 issues made progress towards resolution but are raised again this year by the Automotive, Banking, Better Living, Insurance, Luxury Goods, Retail & Distribution and Pharmaceutical committees.

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2009-2010 Position PapersAt the core of our advocacy mandate

• This year, 21 committees raised 118 issues– 77 old issues which the ECCT wishes to

see addressed.

– 41 new issues have been identified.

2013 Position Papers

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2009-2010 Position PapersAt the core of our advocacy mandateMany long-standing issues

Agro-chemical• The sale and use of illegal pesticides.

Electrical Engineering & Equipment• Avoidance of double testing.

Pharmaceutical• Low reimbursement prices for innovative drugs.• Drug approval process is slow by international standards.

Insurance• Commitment to meet international capital standards and equal

treatment for traditional and unit linked products.

77 Unresolved Issues

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2009-2010 Position PapersAt the core of our advocacy mandateInternational standards are an important component of competitiveness

Automotive• Taiwan’s CO2 emission and fuel economy standards for new

vehicles are not harmonised with European standards.

• Taiwan does not accept EC and ECE certificates, resulting in double testing.

• Key items in automotive testing are still not open to foreign laboratories.

Retail & Distribution• Technical barriers to trade for European food products.

77 Unresolved Issues

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2009-2010 Position PapersAt the core of our advocacy mandateRed tape is holding back business development

Retail & Distribution• Cumbersome product labeling regulations.

Cosmetics• Pre-approval requirement for cosmetics advertisements.

Human Resources• Regulations governing the labour market are not flexible enough.

77 Unresolved Issues

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77 Unresolved Issues

PRC import ban

Affects the following committees:

• Retail & Distribution• Electrical Engineering and Equipment• Health Enhancement • Luxury Goods

2020

2013 Position Papers: 41 New Issues • Asset Management – 3 new issues • Banking – 2 new issues • Electrical Engineering & Equipment – 2 new issues• Energy & Environment – 1 new issue• Health Enhancement – 5 new issues • Human Resources – 3 new issues• Insurance – 2 new issues • Intellectual Property Rights – 4 new issues• Luxury Goods – 1 new issue• Project & Procurement – 1 new issue• Retail & Distribution – 1 new issue• Tax – 2 new issues• Telecommunications, Media & Content – 1 new issue• Travel & Tourism – 3 new issues

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2013 Position Papers41 New Issues

Electrical Engineering & Equipment

•Directive 401 is out of step with international practices.

Retail & Distribution

•Product labeling - Taiwan requires its own unique recycling mark on product labels.

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2013 Position Papers: 41 New Issues

Financial services industry facing too many restrictions

Asset Management• Restrictions on RMB-denominated funds.

Banking• Complex process for outsourcing services.• Unable to offer diversified products.

Insurance• Credit insurance and group insurance restrictions

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2013 Position Papers41 New Issues

Luxury Goods, Travel & Tourism•Promoting Taiwan as a luxury shopping destination

Travel & Tourism•Global distribution readiness for Taiwan’s travel products and services

Better Living•Equality of treatment for foreign residents•Unified emergency response centre•Traffic safety

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In conclusion..• Taiwan is still a good place to do business but has fallen

behind its regional competitors.• Competition from other Asian tigers is fierce and action

is needed - Unleash the Taiwan Tiger to catch up. • ECCT members have made a significant contribution to

the economy through investments, jobs, best practices.• Cooperation with government is good but could be

further strengthened. In particular: – More comprehensive consultation with the ECCT to share

best international practices and standards would help all stakeholders.

Unleashing the Taiwan Tiger

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The ECCT thanks the Taiwan government, especially the CEPD, for excellent cooperation over the past year.

We look forward to continued cooperation with

the government in the year ahead.