INTRODUCTORY STATEMENTS

III. INTRODUCTORY STATEMENTS

4. In his statements the representative of Chinese Taipei inter alia recalled that this Separate Customs Territory, which encompasses the islands of Taiwan, Penghu, Kinmen and Matsu, was short of natural resources. Its only substantial resource - labour - was the source of its strong rate of growth. The main economic indicators were as follows:

Chinese Taipei's Main Economic Indicators

-            Since 1960, the "Fiscal Year" refers to the 12-month period beginning from 1 July 1 of the preceding year to 30 June of the designated year. The item excludes repayment of government debt.

-            In 2000, the "Fiscal Year" refers to the 18-month period beginning from 1 July of 1999 to 31 December 2000. The item excludes repayment of government debt.

Chinese Taipei's Expenditure on Gross National Product

Unit: Billion US$

Chinese Taipei's Employment Population by Sectors

Unit: 1000 Persons

Chinese Taipei's Balance of Payments

Unit: Million US$

5. He added that government policies had restructured the economy from agriculture towards basic and heavy industries. As part of an import substitution and integration process, intermediate goods industries were established. Transportation was streamlined and large investments were made in new ports, airports and highways. The Chinese Taipei authorities had also intensified rural development and supported the moves to improve farm income. More recently, industrial restructuring was further promoted. Educational institutions placed greater emphasis on science and technology in order to provide a highly trained workforce. In the 1990's, economic liberalization and the internationalization of the economy had continued. Infrastructure investments, the regulation of pollution and the privatization of the economy had accelerated. Employment had shifted from the agricultural sector to the industrial and service sectors. The representative of Chinese Taipei also stated that when Chinese Taipei initiated its import-substitution strategy, exports were mostly composed of sugar, rice, bananas, tea and processed agricultural products. Few industrial products were sufficiently competitive for export. Gradually the import substitution industries became capable of producing competitive export products. As a result, the share of exports of traditional products declined whilst industrial products took an increasing share of exports. At first, major export items were labour intensive products such as textiles and plywood. Recently, electronic goods had become major export items. Recent total exports value in US$000 was as follows:

Recent total imports value in US$000 was as follows:

6. Referring to the direction of the future economic policies, the representative of Chinese Taipei said that overall global economy expanded steadily in 1997, in contrast, Chinese Taipei's economy reached its slowest growth rate that year at 6.8 per cent, the highest in six years. Economic growth for 1995 and 1996 had been 6.0 per cent and 5.7 per cent respectively. The upturn in Chinese Taipei's economy could be attributed to strong private investment and consumption. In 1997 inflation was low at the rate of 0.9 per cent, compared with 3.7 and 3.1 in 1995 and 1996. Trade surplus in 1997 was US$7.7 billion. For 1998, the economy of Chinese Taipei was expected to grow 5.3 per cent, with per capita GNP expected to reach almost US$12,030 and consumer prices to rise 1.9 per cent. Nevertheless, these expectations would depend on whether public investment projects proceed according to schedule. An additional source of major impetus to growth would be the private sector as a result of strength in private consumption, steady improvement in the investment climate and greater private investment in public projects. In his statements he also outlined the sectors where Chinese Taipei would need transition periods to bring specific measures into full conformity with WTO obligations and said that Chinese Taipei was ready to assume obligations comparable to those undertaken by WTO Members with a comparable level of economic development. The representative of Chinese Taipei stated that his government would not claim any right granted under WTO Agreements to developing country Members or to a Member in the process of transforming its economy from a centrally-planned into a market, free-enterprise economy.

7. Members of the Working Party warmly welcomed the application of Chinese Taipei for accession to the WTO. Notwithstanding limitations on its natural resources and the relative size of the economy, Chinese Taipei had transformed itself into one of the world's most dynamic trade centres. Chinese Taipei's membership of the WTO would strengthen the multilateral trading system. Members also congratulated Chinese Taipei on its willingness to make the required adjustments promptly and to only seek a minimum of transition periods in which to bring its economy fully into conformity with the requirements of the WTO. Members noted, however, that membership of the WTO required full observance of the MFN and national treatment principles, in particular, GATT 1994 required the grant of any advantage, favour, privilege or immunity granted by any contracting party to any product originating in or destined for any other WTO Member or other country or separate customs territory, whether or not a contracting party, to products originating in or destined for the territories of all other contracting parties. Similar MFN requirements applied in respect of the General Agreement on Trade in Services (GATS) and the Agreement on Trade-Related Aspects of Intellectual Property (TRIPS). It also required the taking of comprehensive market access commitments on goods, including agricultural products, and services, which would be reflected in the respective Schedules of Concessions and Commitments annexed to the Draft Protocol of Accession. Several members of the Working Party were of the view that Chinese Taipei should assume a level of obligations commensurate to that of the developed economy original Members of the WTO, and that Chinese Taipei should apply the WTO Agreement fully from the date of accession, without recourse to any transition periods.

8. The representative of Chinese Taipei acknowledged the importance of observing the principles of MFN and national treatment in the WTO and the broad scope of that obligation. He stated that upon accession Chinese Taipei would fully observe its MFN and national treatment obligations in respect of any advantage, favour, privilege or immunity granted to WTO Members or other countries or separate customs territories, unless specifically exempted from its GATS commitments.