2022 Taiwan White Paper - Presentation
•Download as PPTX, PDF•
0 likes•611 views
Taiwan White Paper summarizes AmCham Taiwan’s recommendations to the government and public on legislative, regulatory and enforcement issues that have a major impact on the quality of the business environment. The White Paper is the most important tool that AmCham members use to communicate with the Taiwan government, and is used all year long.
Recommended
Recommended
More Related Content
Similar to 2022 Taiwan White Paper - Presentation
Similar to 2022 Taiwan White Paper - Presentation (20)
More from The American Chamber of Commerce in Taiwan
More from The American Chamber of Commerce in Taiwan (8)
Recently uploaded
Recently uploaded (20)
2022 Taiwan White Paper - Presentation
- 1. 2022 TAIWAN WHITE PAPER www.amcham.com.tw/advocacy/white-paper Download the WHITE PAPER:
- 2. 1979, 2002, 2022 Seeing the Opportunity … in order to Seize it 2 PRESIDENT ANDREW WYLEGALA American Chamber of Commerce in Taiwan June 22, 2022
- 3. Probability to 2024 Va l u e t o Ta i w a n <US-UK FTA> Inclusion in IPEF CPTPP+Twn (RCEP) Double tax TIFA Cont EPPD Con’t TTIC US-Twn Initiative on 21st Century Trade Chip Supply Chain (bilat) Digital (multi) Chip Supply Chain (multi) BTA Tech Management Agreement (multi) Surge of Promising Economic Initiatives
- 4. Trade Facilitation Regulatory Practices Standard ● SEMICONDUCTOR, HUMAN RESOURCES,TECHNOLOGY recruit foreign professionals, improve labor market ● TAX Drop shipments, double taxation treaty Environment Top 4 Categories By Issue Mention ● MARKETING&DISTRIBUTION Align Taiwan’s Tobacco and Alcohol Administration Act with international best practices ● RETAIL Prohibit the sale of imported alcoholic beverages for which the original manufacturing lot code has been changed or removed ●TRANSPORTATION&LOGISTICS Improve the import environment for “Authorized Economic Operators” ● ENERGY Remove regulatory barriers hindering Taiwan’s renewable energy development ● SUSTAINABLE DEVELOPMENT GOALS Promote decarbonization technologies to help achieve Taiwan’s 2050 net-zero emissions goal ● TRANSPORTATION & LOGISTICS Create a user-friendly charging environment for Electric Vehicles ● DIGITAL ECONOMY Implement digital-friendly regulatory environment through enhanced industry consultation. ● PHARMACEUTICAL Improve Managed Entry Agreement practices to enhance the renewal negotiation and protect confidentiality for new drugs ● MEDICAL DEVICES Remove the requirement for “Certificate to Foreign Government/Free Sale” for imported medical devices ● SEMICONDUCTOR Ensure that semiconductor supply chain security measures and chipset security standards follow international practices ● TECH COMMITTEE Adopt recognized standards to assess cybersecurity risks during government procurement of Information and communications technology (ICT) ● PHARMACEUTICALS Create a clinical and research environment aligned with international standards ● INTELLECTUAL PROPERTY & LICENSING combat online copyright piracy Transportation - enhance design patent protection for cars Telecom – modernize Taiwan’s Copyright Act for the digital era. ●CYBERSECURITY Align with international cybersecurity standards for chip security Top White Paper Concerns Outside 21st Framework REGULATORY PRACTICES TRADE FACILITATION ENVIRONMENT&CLIMATE STANDARDS 1 2 3 4 21st Century Trade Initiative – White Paper Match-up
- 5. AmCham Taiwan White Paper published annually since 1996. 26 Industry committees 5
- 6. More than 4 months of preparation… Over 200 Industry-specific Committee Co-chairs and members 41 Committee meetings
- 7. 7 • Extreme effort in 3rd pandemic year - Committees & Staff • Elevate call on Taipei to “step up” reform to seize opportunity • Expanded requests to Washington • Express Linkage of Taipei & DC agendas • Extend but adjust multi-track initiative strategy • Emphasize Private Public Partnerships White Paper … made easy
- 8. 8 U.S.-Taiwan 21st Century Trade Initiative • Sea change politically; Unprecedented pace • Not IPEF nor FTA; Broad, potentially ambitious • Shape the 21st C with AmCham Submission to Federal Register (see call 6/20)
- 9. 9 2022 TAIWAN WHITE PAPER SEIZING A GOLDEN OPPORTUNITY VICE CHAIRPERSON ANDREA WU American Chamber of Commerce in Taiwan June 22, 2022
- 10. 10 Thank you to our sponsors
- 11. 11 Taiwan currently finds itself in a “golden moment” of international attention and goodwill, but it must do more to ensure that its hard efforts are not in vain.
- 12. 12 5 Issues solved Solved 5 In Good Progress 13 Under Observation 41 Stalled 19 Dropped 9 Solved In Good Progress Under Observation Stalled Dropped 87 Issues Raised AmCham feels a sense of urgency
- 13. 13 SOLVED ISSUES FROM 2021 • Asset Management – Permit ESG funds to be launched in Taiwan and adopt a disclosure model. 資產管理：允許於台灣發行ESG基金並採用揭露模式 • Chemical Manufacturers – Improve the efficiency of the Existing Chemical Substance registration system. 化學品製造商：環保署既有化學物質標準登錄相關建言 • Medical Devices – Accept Medical Device Single Audit Program (MDSAP) audit reports as qualified substitutes for EIRs in QSD simplified regulatory pathway submissions. 醫療器材：接受醫療器材單一稽核計畫（MDSAP）稽核報告可替代醫療器材優良製造規範簡化 模式之美國食品藥物管理署所出具之查廠報告（EIR） • Sustainable Development Goals – Hasten the introduction into Taiwan’s food market of containers made from recycled plastics. 永續發展：儘快將用再生塑料製成的容器引入台灣食品市場 • Transportation & Logistics – Announce the extension of the commodity tax exemption for BEVs as soon as possible. 交通運輸與物流：儘早宣布延長純電動車貨物稅定額免徵政策
- 14. INSURANCE Provide more opportunities for e-commerce to help modernize and develop Taiwan’s insurance market. 開放更多電子商務銷售管道，推動台灣保險市場現代化與發展 Key items showing good progress PHARMACEUTICAL Uphold patient safety by strengthening patient access to authentic medicine and accurate information on medications. 提供病患藥品正確資訊並強化合法藥品可近性以維護病人安全 TRANSPORTATION & LOGISTICS Create a user-friendly charging environment for EVs. 建立電動車的使用者友善環境
- 15. 15 Areas of Concern Raised by Committees
- 16. 16 Taiwan Must Seize its Golden Opportunity Push for the BTA, binding trade deals Ensure energy stability Practice and drive sustainability Fast-track digitalization Attract and circulate talent, draw labor force Accelerate reopening and re-engagement Reduce double taxation
- 17. 17 A series of power outages has raised serious and growing concerns about Taiwan's ability to ensure a stable supply of energy and prevent interruptions to industrial production. Maintain Sufficient Energy Supply AmCham’s Energy Committee urges the government to redouble its efforts here through approaches such as incentivization of load-balancing technologies and establishment of a power reserve market and pricing mechanism. These incidents indicate that intensive efforts to accelerate renewables projects, expand Taiwan’s natural gas-fired power capacity, and build grid resilience are increasingly necessary.
- 18. 18 AmCham calls on the government to address long-running issues among young talent in Taiwan. Strengthen Taiwan’s Talent Market To boost language skills and foster an international mindset among local talent, ensure measurable progress on important initiatives such as the Bilingual 2030 program and encourage the involvement of key stakeholders. We also await the launch of the U.S.’ Taiwan Fellowship Program and its Taiwan equivalent as a means to improve the language skills of Taiwan’s public servants and expand government-to-government exchanges. We urge better promotion of existing programs to attract and retain foreign talent.
- 19. 19 Reopening and Re-engagement • Taiwan has garnered well-deserved praise and attention for its expert handling of the pandemic since early 2020. We commend it for its recent policy of moving from “pandemic” to “endemic.” • The time has come to also begin laying out a roadmap for reopening Taiwan and facilitating its re-engagement with other countries and with the broader global economy by Q4 2022. • AmCham companies from across the industry spectrum urge the announcement of clear, science-based, and timely strategies for normalizing international travel and welcoming new business from abroad.
- 20. 20 Vigorously Pursue Trade Collaborations AmCham warmly welcomes news of the U.S.-Taiwan Initiative on 21st Century Trade and continues to push for bilateral high standards agreements and Taiwan’s inclusion in multilateral arrangements such as the CPTPP. Taiwan must make an extra effort to prove its credibility as a good trading partner and demonstrate that it is willing to accept the necessary conditions of such agreements and leverage its generally admirable record on labor and environmental policies.
- 21. 21 Requests to Washington A Focus on the Trade and Investment Relationship • Pursue greater economic integration with Taiwan via a BTA (as well as new channels such as the U.S.-Taiwan Initiative on 21st Century Trade). • Include Taiwan in a bilateral (or multilateral) semiconductor supply-chain agreement • Vigorously develop the TTIC framework and promote inbound Taiwan FDI • Pass the Taiwan Fellowship Act and the America COMPETES Act • Explore a double taxation agreement • Support Taiwan’s preparation for CPTPP accession • Return to world leadership on trade liberalization via U.S. accession to the CPTPP
- 22. Download the 2022 White Paper SCAN ME Or visit our website: amcham.com.tw/advocacy/white-paper/ 22
Editor's Notes
- 10:45
- Please highlight that Vincent is participating the U.S.-Taiwan NextGen Telecom visit led by NDC Minister Kung so cannot participate in this important Chamber event, and thanks Andrea (plus Deputy Minister Kao in the luncheon) for leading this important annual WP event and keeping the great tradition to have close partnership and dialogue with NDC.
- Each of AmCham’s industry committee creates a Priority Issues Paper included in the annual Taiwan White Paper, which is presented to the government and the public as a summary of the current business climate in Taiwan for each specific field.
- More than four months of preparation by – 14-member Board of Governors & Supervisors and members of Government Relations Committee who consider macro economic and business issues and set the overall “tone.” 239 Industry-specific Committee Co-Chairs and members, who coordinate with their respective committees on updating and identifying new business sector priority issues. Involved AmCham Office Staff Members (Acting) Senior Director of Government & Public Affairs Lily Kuan Project Coordinator of Government and Public Affairs Rosalyn Wu and Vivian Yang Senior Advisor Don Shapiro Senior Editor Jeremy Olivier Associate Editor Julia Bergstrom
- Taiwan rightly has continued to receive international praise and attention for a host of good reasons: maintaining one of the world’s very few expanding economies, presenting a model of vibrant democratic governance, and handling the COVID-19 pandemic in an exemplary fashion while generously assisting countries around the world with much-needed medical equipment.
- Scoreboard for 2021 issues – 87 issues total For background, let me explain what each score means: 1 – Solved: Conclusive action has been taken on the issue, with a fair and transparent record of implementation. It is no longer considered a problem. 2 – In Good Progress: The issue is currently receiving satisfactory follow-up action from the government. 3 – Under Observation: The government has given the issue some initial attention, but it is too early to assess the prospects for resolution. 4 – Stalled: No substantial discernible progress has occurred. 5 – Dropped: Although not resolved, the issue is no longer a committee priority. Compared with last year, when Committees awarded 13 issues with a score of “1,” this year we see less than half of that number It is for this reason that the overall tone of our White Paper this year is more urgent and direct than in the past. Not only do we need to see Taiwan maintain its pace of reform and development, but to redouble it. Otherwise, we fear the people of Taiwan may miss the golden opportunity before them in the post-pandemic world.
- Nevertheless, I’d also like to take a moment to recognize the 2021 issues that were considered resolved in this year’s edition of the White Paper. The issues come from our Asset Management, Chemical Manufacturer, Medical Devices, Sustainable Development Goals, and Transportation & Logistics committees. Some of these are key issues that have been raised several times in previous White Papers, and we are particularly happy to have learned about the decision by the Taiwan Food and Drug Administration’s decision to begin accepting Medical Device Single Audit Program (MDSAP) reports as sufficient to qualify new medical device applicants for expedited licensing. We thank the TFDA for their flexibility and cooperation in resolving this issue and our Medical Device Committee for their efforts… We also thank the Financial Supervisory Commission, the Environmental Protection Administration, and the Executive Yuan. And of course, we greatly appreciate the consistent collaboration and coordination efforts of the National Development Council.
- In addition, we still see a fair number of important issues making good headway in the discussions and exchanges between our Committees and their relevant government agencies. Some of these, including the ones shown here, demonstrate forward momentum on areas such as digitalization (in the insurance industry), improved access to legitimate medications and treatments (pharmaceutical), and sustainable development (a more diverse charging environment for EVs).
- While we are happy with the consistent progress on these and other industry issues, we still see significant room for improvement in a number of key areas.
- Taiwan is presented with a golden opportunity to position itself as a regional and global hub of digital transformation, sustainable development, and cutting-edge technological advancement. However, our committees have raised several common areas of concern that could hinder Taiwan from seizing this opportunity. I’d like to cover a few of the most pressing issues in the next slides.
- AmCham’s member companies are increasingly worried about the Taiwan government’s ability to meet its energy transition and carbon reduction goals in the next several years, while ensuring that Taiwan will have sufficient energy supply and a stable enough grid and power transmission and distribution systems.
- Taiwan’s well-educated, highly motivated, and hard-working talent base is one of the island’s most valuable economic assets, yet Taiwan suffers from shortages of talent in certain key industries, as well as of less-skilled labor. We urge the government to continue resolving key talent-related issues such as perennially low pay that contribute to the exodus of young talent away from Taiwan and toward more lucrative careers abroad. We also throw our support behind forward-looking initiatives such as Bilingual 2030 and request that AmCham and its members continue to be apprised of its progress. We are particularly interested in learning about which aspects of the program are different from other past approaches to improving Taiwan’s English-language capabilities. And, as an important stakeholder with an interest in the success of this initiative, we stand ready to lend a hand in promoting the program or providing feedback when called on. AmCham eagerly awaits the final passage and funding of the Taiwan Fellowship Act and the creation of the Taiwan Fellowship Program. Once established, we hope that Taiwan can develop a reciprocal program of sending its own public servants to the U.S., which will greatly contribute to improving their English-speaking ability and providing them with a more international mindset. Lastly, the Chamber emphasizes that while Taiwan has launched some excellent programs to attract international talent (e.g., Gold Card, Taiwan Scholarship, etc.), many of these programs suffer from a lack of adequate promotion overseas. For Taiwan industry to continue to flourish, a diversity of talent is increasingly necessary. We urge the government to act quickly in marketing Taiwan as a must-go place for aspiring foreign professionals with an interest in East Asia.
- AmCham recognizes the challenge the Taiwan health authorities have faced in setting pandemic control policy in recent months in light of the rapid spread of local infections, and we commend them for making the difficult but necessary recent policy shift toward ”living with the virus.” Of particular importance to us was the decision in March to allow business travelers from low-risk into Taiwan. That being said, and considering the measures taken by a growing number of neighboring countries to begin welcoming international visitors, Taiwan is in desperate need of a roadmap for opening back up to the world. We are heartened to learn about the decision to gradually shorten the quarantine period for resident inbound travelers, and hope that this will lead to a full relaxation of border controls on vaccinated non-resident arrivals by the fourth quarter of this year. The health and survival of many businesses will hinge on such a reopening. Visa-free travel should be a priority – case-by-case review of visa applications is counterproductive. Our member companies call on the government to announce clear, science-based, and timely strategies for normalizing international travel and welcoming new business from abroad. Otherwise, we worry that many businesses that may have originally intended to invest or expand in Taiwan may decided to instead go elsewhere.
- AmCham was very happy to learn of launch by the U.S. Trade Representative and Taiwan’s Office of Trade Negotiations of the U.S.-Taiwan Initiative on 21st Century Trade. We view this development as further incentive and encouragement for Taiwan to continue to make breakthroughs on both big-picture trade barriers, as well as the fine-detail, industry-specific issues that comprise the bulk of our White Paper. In fact, we expect that many of these items will be part of the discussion for this initiative. Furthermore, while stopping short of core trade agreement items like tariff reduction, this initiative will also provide a useful roadmap for achieving the ultimate goal of a U.S.-Taiwan BTA. Thus, we once again urge Taiwan to go the extra mile in demonstrating its acceptance of all of the conditions that come along with such high standards agreements. Part of that will be “showing the U.S. what it’s got” – an admirable track record in areas such as environmental and labor protection, which have been proven to be central to the U.S.’ recent resistance to trade liberalization. But it will also mean making real concessions on longstanding trade barriers such as U.S. imports of pork containing ractopamine – without the labeling conditions and public messaging that lead the public to perceive that such products are harmful to human health.
- Likewise, in each year’s edition of the White Paper, AmCham makes explicit requests to Washington to ensure Taiwan’s continued success and contributions as a top-10 trading partner of the U.S. and as an important economic actor in its own right. In the case of trade, while recent progress on the trade relationship is encouraging, we are adamant that Taiwan is an ideal candidate for bilateral high standard agreements like a BTA. We have made it clear this year our urgent hope that President Biden can build upon the pledge by the U.S. and Taiwan chief trade negotiators in Bangkok in May to find “concrete ways to deepen the U.S.-Taiwan trade and investment relationship” by beginning talks on a BTA. And we also call on Congress to reassert its constitutional power to push forward a BTA by passing legislation requiring that negotiations for such an agreement begin this year, with a completed text presented for passage by early 2024. Next, we urge the U.S. government to negotiate a bilateral semiconductor supply-chain agreement, emphasizing Taiwan’s essential role in promoting the resilience of critical supply chains. Taiwan’s strong position in the global semiconductor and high-tech industries makes it a worthwhile partner in strengthening this ecosystem. We support the U.S.’ moves, through the CHIPS Act and other initiatives, to increase semiconductor production on its shores, but note that a globalized supply chain that combines the strengths of different countries is the surest way to enable these industries to flourish. Next, we urge the final passage and funding of the Taiwan Fellowship Act, which would create a program of sending American public servants to Taiwan to learn Mandarin and conduct exchanges with their Taiwan government counterparts, as well as the America COMPETES Act, which would provide the US$52 billion in funding for the CHIPS Act and support increasing domestic semiconductor capacity as a prerequisite to rebalancing global supply chains. In our series of requests to D.C. last year, which we dubbed the Taiwan Commercial Initiative, we called for exploration of a DTA to facilitate trade and the two-way investment that is so important to supply-chain strengthening. We renew that call this year. Double taxation is also an issue we have raised with the Taiwan government in the main section of this White Paper, given its potential to boost economic efficiency and integration. The Chamber notes that the State Department previously indicated support for such an agreement. However, we are unaware of subsequent movement on this eminently practical and achievable recommendation. Lastly, we asked that the U.S. help with prepping Taiwan to join the CPTPP by providing support and technical assistance for its accession. We then strongly urged the U.S. government to return to the CPTPP, a foundational trade agreement for the region, at the earliest opportunity.