From Export Processing Zone to Free Trade Zone

From Export Processing Zone to Free Trade Zone
United Daily News editorial (Taipei, Taiwan, ROC)
A Translation
June 1, 2010

Half century ago Taiwan adopted an "export processing zone" development strategy. It lept ahead of most developing countries and seized the international market. Approximately 30 years ago, under intense pressure from the US, a major trading partner, it underwent economic liberalization at an unprecedented scale. But realistically speaking, Taiwan as it is currently cannot be considered a genuinely free and open economy.

During the past two decades, former presidents Lee Teng-hui and Chen Shui-bian saddled the nation with an isolationist Closed Door Policy. Too many industries, too many products, and too many occupations are protected to greater or lesser degree by the government. A huge bloc of employers and employees, unable to compete directly with foreign producers, seek out government protection. They are fearful of the day they must confront ECFA. They have become the primary force behind opposition DPP and TSU efforts to obstruct ECFA.

They include agriculture, towel manufacturers, furniture manufacturers, and other vulnerable industries. The heads of these industries may not realize it. But although the government has signed bilateral arrangments to minimize the impact on their production once ECFA is signed, they cannot sit back and relax. That is because ECFA is a key. When Taiwan uses it to open its doors, it will gradually enter an increasingly free economic realm. In the future, by means of free trade agreements (FTA) with its major trading partners, Taiwan will be fully opened. Besides agriculture, there is almost nowhere one can escape powerful competitive pressures. In short, Taiwan will join the mainstream global economy and become a bona fide free economy.

Yet the opposition DPP and TSU cavalierly encourage vulnerable groups to obstruct ECFA. Nearly half of the public on Taiwan still harbors doubts about it. This means too many people still do not realize that Taiwan must eventually undergo full liberalization. They fear the free market economy, and refuse to embrace it with open arms.

Half a century ago, Taiwan led the way toward a new era of export-orientated economic policy. The Export Processing Zone was the pioneer. In a closed area, we gave full play to our strengths. We allowed the public on Taiwan to first make contact in this unfamiliar area, immersing themselves in the experience. Then, after experiencing the infinite opportunities, transform all of Taiwan into an Export Processing Zone. Thirty years ago the Hsinchu Science Park replicated this process, and led Taiwan into the high-tech era.

Today Taiwan is moving toward a new and inevitable era of free markets. We can welcome it, or we can resist it. But during the coming years we will find ourselves smack dab in the middle of it. It would appear we need something akin to export processing zones or science parks to act as trailblazers. This would allow the public on Taiwan to get an advance taste in a closed environment.

The special economic and trade zone, which has been promoted for over two years, is set to perform this role. From south to north several regions with good harbors and airports, surrounded by broad hinterlands, will be designated special zones. They will experiment with and simulate a free economy for no less than one or two years, but no more than ten. By then the whole of Taiwan should have the courage required to enter the free economy.

Within this closed test area, commodities, aside from safety and health concerns, will enjoy unobstructed free access. The movement of funds and personnel will be kept as free as possible, comparable to Singapore's, which has the freest economy in the world. Tariff and non tariff barriers will be kept to a minimum. As much as possible, corporate and personal income taxes will be kept in line with Singapore's. Infrastructure and administrative efficiency will compare favorably. Labor policies for foreign workers will follow suit. As long as we are seeking to be both free and open, we will of course seek to excel.

When it comes to administrative efficiency, Taiwan as a whole may find it difficult to match Singapore. But specific regions, such as the Hsinchu Science Park, operating under special laws, through a single window, will enjoy far greater flexibility. Business taxes can also match Singapore's. If we grant special privileges, income taxes will not constitute a significant barrier. Labor policy for foreign workers will be tested within the zones. It depends only on the determination of those in power. For any relevant infrastructure construction. the government need merely hand down the order. Businesses and funds can quickly be made available without drawing on any public funds.

Minister of Economic Affairs Shi Yen-hsiang declared the intention of building "free economic zones" as pilot projects 20 or 30 years from now. We would like to solemnly remind Minister Shih that our circumstances will be critical two or three years from now. If we fail to step up construction, our circumstances will outpace our pilot programs.

Before conducting any experiments, try first to imagine a Singapore-like region close to prime areas on the mainland. How can one begin to calculate the benefits?

從加工出口區到自由經濟區
【聯合報╱社論】
2010.06.01 02:19 am

台灣從半世紀前就採取「加工出口區」的發展策略，領先絕大多數開發中國家走向國際市場；約莫三十年前，又在主要貿易對手美國的強大壓力下，展開了規模空前的經濟自由化行動；但實事求是而言，台灣現在卻還不能算是高度自由開放的經濟。

近二十年來，在李、陳兩位前總統主導的鎖國政策下，我們還有太多產業、太多商品、太多行業，受到政府或多或少的保護。也正是這一大塊躲在政府公權力庇蔭之下無法與國外生產者直接抗衡的雇主與從業人員，面對ＥＣＦＡ日近一日的簽署時程，心生惶惑，成為在野黨藉以杯葛、抗拒ＥＣＦＡ的主力。

包括農業、毛巾、寢具等弱勢產業的從業人士或許不知道，即使透過兩岸雙方政府的用心安排，在簽署ＥＣＦＡ之後的一段時期雖不致對他們產生難以抵擋的衝擊，但他們也不能高枕無憂；因為ＥＣＦＡ只是一把鑰匙，當台灣用它打開了大門，漸將進入一個逐次體現的自由經濟天地。未來，透過與主要貿易對手簽定自由貿易協定（ＦＴＡ），整個台灣會日漸全面開放；除了農業之外，幾乎不會有任何角落可以逃避從四面八方而來的強勁競爭壓力，簡言之：台灣會加入全球經濟的主流，成為一個不折不扣的自由經濟體。

然而，當在野黨可以輕易鼓動弱勢群體杯葛ＥＣＦＡ，而且將近半數台灣人民心中仍有深重疑慮，就表示有太多國人不但昧於台灣即將漸次全面開放的事實，而且不敢張開雙臂迎對開放、擁抱自由經濟。

半世紀前，當台灣一馬當先邁入出口導向的新紀元，加工出口區就是開路先鋒；在一個封閉的區域內，將我們的優勢充分發揮，讓台灣人民對這個陌生的領域從事初次的接觸、深入的體驗；然後，在體會其中蘊藏的無限機會後，進而將整個台灣都變成加工出口區。三十年前的「新竹科學園區」複製了這個過程，引領台灣進入高科技時代。

如今，當台灣將邁步踏入一個全新的，卻無從逃避的自由經濟新時代，而且不論我們歡迎還是抗拒，未來數年之間即將置身其中；我們似乎也需要一個像加工出口區或科學園區一樣的開路先鋒，讓台灣人民可以在一個封閉的區域內，先體驗及因應一下個中滋味。

鼓吹逾兩年的經貿特區，正要扮演這個角色；從南到北，選擇幾個具備優良的海港、空港條件，周邊有足夠腹地的寬廣區域，闢為專區，進行自由經濟的實驗，模擬快則一、二年，慢不過十年，整個台灣應可勇敢地進入的自由經濟時代。

在這個封閉的試區內，商品貨物除了安全與健康的顧慮，可以全無阻礙地自由進出；資金、人員也比照全世界最自由的新加坡，最大限度地開放；關稅與非關稅障礙降至最低；企業與個人所得稅儘可能向新加坡看齊；基本設施及行政效能毫不遜色，外勞政策也一概效法。既要自由開放，當然要取法乎上。

行政效能，整個台灣或許還難及新加坡，但在特定區域之內，透過單一窗口與特別法的運作，如新竹科學園區，其靈活性已較前者不遑多讓。營所稅亦足堪與星比擬，若給予特別優惠，所得稅也不致構成重大障礙；外勞政策在區內試行，只繫乎當政者的決心；而基礎設施等相關建設，只要政府一聲號令，企業、資金一擁而至，無需任何公帑，即可快速齊備。

經濟部長施顏祥宣示，要建設若干「自由經濟區」做為模擬二、三十年後台灣現狀的試點；我們要鄭重提醒施部長，二、三年後的現狀可能已將如是，再不加緊建設，現狀就要跑在試點的前面。

在進行實驗之前，先設想一下：一個近在大陸精華地區咫尺之地的「新加坡」，其利豈可勝計？