TPP and RCEP Membership Requires Comprehensive Planning

TPP and RCEP Membership Requires Comprehensive Planning
China Times editorial (Taipei, Taiwan, Republic of China)
A Translation
January 9, 2014

Summary: The Shanghai Free Trade Zone is a means by which the Chinese mainland can join the TPP. On January 6 the Mainland took another step, and allowed in seven value-added telecommunications services. The Mainland's cross-Strait trade in services agreement was supposed to give Taiwan special e-commerce treatment. Instead, these have been given to the Shanghai Free Trade Zone. Political disputes made Taiwan miss a golden opportunity. It must now catch up. It must pass the agreement as soon as possible. It must accelerate the process of trade liberalization and integration into the Asian-Pacific regional economy. Taiwan's industrial competitiveness risks disintegration.

Full text below:

The Shanghai Free Trade Zone is a means by which the Chinese mainland can join the TPP. On January 6 the Mainland took another step, and allowed in seven value-added telecommunications services. The Mainland's cross-Strait trade in services agreement was supposed to give Taiwan special e-commerce treatment. Instead, these have been given to the Shanghai Free Trade Zone. Political disputes made Taiwan miss a golden opportunity. It must now catch up. It must pass the agreement as soon as possible. It must accelerate the process of trade liberalization and integration into the Asian-Pacific regional economy. Taiwan's industrial competitiveness risks disintegration.

The United States is willing to allow the Chinese mainland to take part in TPP negotiations. The Mainland has yet to officially respond. It is promoting the ASEAN Regional Comprehensive Economic Partnership (RCEP) negotiations while it keeps an eye on TPP negotiations . The Shanghai Free Trade Zone went into effect last September. Since then the Mainland has aggressively used FTAs to achieve a new wave of trade liberalization. Its goal was obvious, and the results have been substantitive.

According to news reports, late last November the Shanghai Free Trade Zone Trade and Industry Department admitted 1,733 new companies. These funded 1675 new enterprises. Total registered capital approached 40 billion RMB. As we can see, the Shanghai Free Trade Zone has attracted considerable domestic capital. It has inspired the establishment of free trade zones in the Tianjin Binhai New Area, Guangdong, Hong Kong, and Macau Free Trade Zone, the Zhejiang Zhoushan area, Chongqing Two Rivers area, Hebei Caofeidian area, and Fujian Pingtan area.

The Chinese mainland is using free trade zones as a means of liberalization. It is loosening regulations to attract private capital and a foreign presence. This achieves its goal of promoting investment. This also enables it to meet regional trade agreement liberalization requirements. 

More importantly, Mainland China's accession to WTO constitutes its first wave of trade liberalization and integration with the global economy. Economic liberalization has enabled the Mainland to enjoy a decade of rapid growth. The Mainland has successfully transitioned from an agriculturally-based economy to an industrially-based economy. The Shanghai Free Trade Zone also explores ways of gradually transitioning from an industrially-based economy to a service-based industry. The Mainland is moving in the same direction as the developed economies. Taiwan must pay attention to the Mainland's development and seize whatever opportunities present themselves.

The TPP and RCEP are two forces for Asian-Pacific regional economic integration, and a new wave of Chinese mainland industrial restructuring. Taiwan has no time to waste. It must ride the wave of Asian-Pacific economic integration as soon as possible. It must take concrete steps to ensure Taiwan's accession the RCEP and TPP.

Taiwan may wish to join the RCEP or the TPP. If so, it must acknowledge the role of the Mainland. The Mainland is Taiwan's largest trading partner. Taiwan must sign the Cross-Strait Trade in Services Agreement and the Cross-Strait Trade in Goods Agreement, as soon as possible. These will help Taiwan's integration into the Asia-Pacific regional economy. They will reduce the impact of the FTA between Mainland China and Korea on Taiwan's economy.

Taiwan must take advantage of cross-Strait economic cooperation, as soon as possible. It must seek ways to integrate the two sides in the global economy and the East Asian regional economy. Mainland China has yet to join the TPP. Taiwan seeks early accession to the TPP. To improve its chances, Taiwan must understand the Mainland's reasons for joining the TPP. It must adjust its timetable for joining the TPP. It must realize its chances for joining may change.

Secondly, taking part in regional economic integration requires putting industry interests first. The TPP is a new style, high-standard regional trade agreement. Industry as a whole will benefit. But Taiwan must consider the impact on agriculture and traditional industries. It must provide concrete policy plans for industrial transformation.

Take the Taiwan-US Trade and Investment Framework Agreement (TIFA). The most difficult issue during negotiations was U.S. beef imports. Was Taiwan ready for the impact? Are producers of other sensitive agricultural products prepared to expand production in order to make the pie bigger? Take intellectual property. The TPP may require term extensions for patent medicines. This may increase health care costs. Are coping strategies in place? The government must communicate with industry before joining. It must mitigate the impact on industry. We believe TPP will enhance the efficiency of Taiwan's economy .

Taiwan must pay attention to Mainland Chinese dynamics. It must maintain good communications. The Mainland has already joined the RCEP. We must promote Taiwan's accession as soon as possible, before the RCEP completes negotiations in 2015. We must get a firm handle on RCEP negotiations once they are completed in 2015. We must explain the role of our foreign economic partners to the public. We must seek to maximize public support, and minimize opposition political pressure. We must also propose a comprehensive domestic industrial policy plan, on several tracks at the same time. We must sign regional trade agreements to improve the domestic economy. Only then can we achieve early integration into the new Asian-Pacific regional economy.

社論－加入TPP及RCEP政府需全面布局
稍後再讀
中國時報 本報訊 2014年01月09日 04:09

可視為中國大陸加入TPP試點的上海自由貿易區，於1月6日進一步開放7項增值電信業務，將大陸在《兩岸服務貿易協議》中開放給台灣的電子商務優惠，先給了上海自貿區，台灣因政治爭議錯失了一次大好機會，若再不急起直追，盡速通過協議，並加速經貿自由化進程以融入亞太區域經濟整合，台灣產業競爭優勢可能有崩解之虞。

美國已表示願意邀請中國大陸加入TPP談判，大陸雖然尚未正式回應，但在積極推動參與東協區域全面經濟夥伴關係（RCEP）談判同時，始終重視並追蹤TPP談判的進展。事實上，我們從上海自貿區去年9月底掛牌啟動後的運作可以看出，大陸積極利用自貿區試點達成新一波經貿自由化的目的相當明顯，且已收到實質成效。

報載上海自貿區截至去年11月底，工商部門已辦新設企業共計1733家，其中內資新設企業1675家，註冊資本額近400億元，可看出上海自貿區的開放措施吸引許多內資入駐，也因此引起天津濱海新區、粵港澳自貿區、浙江舟山、重慶兩江、河北曹妃甸、福建平潭等地區對於成立自由貿易區的興趣。

中國大陸藉由自由貿易區各試點所進行的開放措施，以鬆綁法規方式吸引民間資金及外資進駐投資，不但達成促進投資之目的，亦符合全球經貿自由化下，積極洽談的區域貿易協定自由化要求。

更重要的是，中國大陸加入WTO做為第一波與全球經貿自由化接軌以來，已使大陸坐享十年經貿自由化所帶來的快速成長果實，並將大陸產業結構成功地從農業為主轉為工業為主。此次藉由推動上海自貿區進行試點，進一步試探大陸從工業為主的產業結構型態，逐漸轉為以服務業為主要產業型態，朝向已開發經濟體看齊的方向前進，值得台灣關注其發展，並掌握商機。

面對TPP及RCEP兩股亞太區域經濟整合的力道，以及中國大陸新一波產業結構調整，台灣實無時間繼續蹉跎，必須盡速全力融入新一波亞太經濟整合態勢之中，以具體行動，雙軌推動台灣加入RCEP及TPP。

首先，無論台灣想要加入RCEP或是TPP，都必須正視中國大陸的角色。大陸是台灣第一大貿易夥伴，盡速完成《兩岸服務貿易協議》之生效，以及海峽兩岸貨品貿易協議之簽署，將有利於台灣融入亞太區域經濟整合，並減緩「中」韓FTA對於台灣經濟之衝擊。

此外，台灣應該盡速利用兩岸經濟合作，尋求兩岸共同融入全球及東亞區域經濟整合的途徑。面對中國大陸尚未加入TPP的事實，為提高台灣盡早加入TPP之機率，台灣應積極掌握大陸加入TPP之意願，隨時修正台灣加入TPP的時程及機率。

其次，加入區域經濟整合，仍要以產業利益為先。面對TPP為新型態高標準的區域貿易協定，雖然整體產業會因而受益，然而台灣仍應重視農業及部分傳統產業所受到的衝擊，提出產業轉型的具體政策規畫。

舉例而言，台美貿易暨投資架構協議（TIFA）談判時最為棘手的美牛開放，台灣是否已準備好對策？對於其他敏感性農產品是否已經做好藉由引進產品擴大加工製造、把餅做大的準備？智慧財產權部分，面對TPP可能要求原廠藥延長專利期限所可能提高的健保成本，是否已經有因應對策？政府若能在加入之前，與產業做好充分溝通，減緩產業衝擊，相信更能提高加入TPP對於台灣經濟的效益。

台灣應關注中國大陸的動態，並與之做好溝通。對於大陸已加入的RCEP，應盡速於2015年RCEP完成談判前，推動台灣加入，並掌握2015年RCEP談判完成後，外圍經濟夥伴參與條款之發展，對內應充分溝通，爭取最大化民意支持力度，減輕反對黨的政治壓力，同時提出完整的國內產業政策規畫，多軌進行，才能提高簽署區域貿易協定對國內經濟之效能，真正達成盡早融入新一波亞太區域經濟整合的目的。