Remember TISA While Signing ASTEP

Remember TISA While Signing ASTEP
China Times editorial (Taipei, Taiwan, Republic of China)
A Translation
November 8, 2013

Summary: ASTEP was supposed to be signed during a DPP administration. But three years of tough negotiations were necessary to reach an agreement. We owe the negotiating team a round of applause. The government and civil society together welcome the free market that ASTEP will initiate. Meanwhile, let us not forget TISA, which remains stalled in the Legislative Yuan.

Full text below:

After three years of tough negotiations, the Republic of China and the Republic of Singapore finally signed the Taiwan Singapore Economic Partnership Agreement (ASTEP), on the 7th of this month. ASTEP is unlikely to have any short term impact. it will not affect this year's anticipated 2% economic growth. But it will contribute to our long term economic growth. Our economy is being suffocated. ASTEP will give it a shot in the arm. The Ministry of Economy Affairs estimates that 15 years after ASTEP is signed and implemented, it will increase our GDP by 701 million USD, and total GDP by 42.1 billion NTD. As many as 6,154 more jobs will become available. But we think ASTEP will have an even more important effect.

According to statistics, 2012 ROC Singapore bilateral trade amounted to 28.2 billion USD. Singapore is our fifth largest trading partner. Singapore is our fourth largest export market. It buys over 6% of our exports. It is our eighth largest source of imports. Bilateral trade relations are close. Our agreement with Singapore follows on the heels of our ECFA agreement with the Mainland. It is an important indicator of our liberalization for the international community.

ASTEP is a finely crafted agreement. It covers trade in goods, trade in services, investments, dispute resolution, e-commerce, government procurement, customs procedures, and other issues. Singapore's trade in goods with the ROC is 100% liberalized. When Singapore joined WTO, six alchoholic beverages were not included. For the ROC, the duty on these has been eliminated. In other words, Singapore's commitments to the ROC are more favorable than those mandated by the WTO. The ROC will immediately eliminate tariffs on 83% of all Singaporean goods. Eventually tariffs will be eliminated on 99.48% of all goods. Singapore already levies no tariffs whatsoever on over 90% of all goods from the ROC. Therefore the ROC must further reduce overall tariffs.

These figures, spread out for all to see, speak louder than words. They underscore the ROC's determination to establish a free economy. They will help the ROC during future economic and trade negotiations. They will help promote ROC participation in the Trans-Pacific Partnership Agreement (TPP) and Regional Comprehensive Economic Partnership (RCEP).

Tariffs will be eliminated entirely on over 80% of all Singaporean exports to the ROC. The impact on traditional industries will be considerable. But neither the ruling nor opposition parties have voiced opposition. They have affirmed ASTEP in toto. This shows that Taiwan has not backtracked on economic liberalization. This shows that TISA running aground is entirely due to the Democratic Progressive Party's Taiwan independence stance, and not to protectionist policy. The DPP should make clear its economic strategy. Is it anti-China or is it anti-free trade?

Meanwhile, ASTEP provisions are quite comprehensive. Take the impact on sensitive sectors. Tariff reduction is divided into three stages: 5, 10, and 15 years. This provides businesses with enough time to adapt. Southeast Asian and other countries may attempt to hitch a free ride on ASTEP. But the ROC requires proof of origin. The government will implement strict verification mechanisms. The government will also conduct joint inspections with Singapore. This will deter "guo shui" or the filing of false origins reports. As long as the government takes adequate precautions, and communicates clearly, liberalization is entirely feasible.

When the legislature reviews future TISA and TIGA agreements, it should draw from experience. People are worried about TISA. Basically these worries are the result of poor communications and emotional reactivity. They are the result of subtle brainwashing in the aftermath of political struggle. The Executive Yuan must improve its communication skills. Ministry heads must stand and be heard. They must allay national security concerns. They must dissolve unwarranted fears about "the Communist threat." They must underscore the economic benefits, in order to convince the public.

Finally, ASTEP includes investment promotion, investment protection, and investment liberalization. It opens up the two sides' service sectors and e-commerce sectors. This is good for both sides. For Taiwan, the creation of value-added services is particularly important. The agreement stipulates that the two sides shall treat each as they would citizens, and that they shall not impose requirements pertaining to the number of transactions, to total assets, or to business models. They shall not require that businesses be located in certain locales or otherwise restrict service industry market access. As we all know, Singapore is an international leader in the financial, management, education, and gaming industries. Financial openness and wealth management companies have enabled Singapore to achieve an average annual per capita income of $50,000 USD..

The Singaporean government provides an excellent business environment for service industries. It clearly enumerates what is forbidden. Its rules are clear. It abides strictly by the rule of law. Its language and cultural is similar to ours. Taiwan education and wealth management services can easily adopt. They can share in the markets Singapore has opened up in Southeast Asia and even the rest of the world. Singapore's direct investment in ROC manufacturing and service industries (FDI), will bring international capital and progressive management to Taiwan. This can raise salaries and create jobs on Taiwan. This can help revive our suffocating economy. The opening up of government procurements and exchanges will also enable the ROC government to learn Singapore's efficient management techniques, and discover solutions. These are all reasons why we think the Ministry of Economic Affairs has grossly underestimated the importance of ASTEP.

ASTEP was supposed to be signed during a DPP administration. But three years of tough negotiations were necessary to reach an agreement. We owe the negotiating team a round of applause. The government and civil society together welcome the free market that ASTEP will initiate. Meanwhile, let us not forget TISA, which remains stalled in the Legislative Yuan.

社論－迎台星協定 勿忘冬眠中的服貿
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中國時報 本報訊 2013年11月08日 04:10

歷經3年多的艱苦談判，我國與新加坡的台星經濟夥伴協定（ASTEP）7日終於簽署，短期而言，雖然不太可能讓今年經濟成長率立即產生保二效果，但長遠來看，對經濟發展一定會有正面的效益，這對我國目前的悶經濟，無疑是重要的強心劑。經濟部估算，簽署生效並執行15年期滿後，將使我國GDP增加7.01億美元，總產值則可成長新台幣約421億元，增加6154個就業機會。但我們認為，ASTEP將會創造更大的效果。

根據統計，2012年我國與新加坡的雙邊貿易額達282億美元，是我第五大貿易夥伴。新加坡也是我第四大出口市場，占我出口總額超過6%，也是我第八大進口來源，雙邊貿易關係緊密。我與新加坡的協議，是繼與大陸簽署ECFA後，國際審度我自由化的重要標準。

ASTEP是高品質與高標準的協議，涵蓋內容包括貨品貿易、服務貿易、投資、爭端解決、電子商務、政府採購、關務程序等議題。新加坡對我商品貿易是100%自由化，包括星加入WTO時未開放的6項酒類產品，將對我降為零關稅，換句話說，星對我比對WTO的承諾更優惠。我方擬對新加坡貨品83%立即降為零關稅，最後要達到99.48%項目零關稅。因為新加坡本就超過9成貨品零關稅，因此整體而言我方降稅較多。

這些數字攤出來看，事實勝於雄辯，足以顯示台灣追求自由經濟的決心。對未來我國的經貿談判，及推動參與跨太平洋夥伴協定（TPP）與區域全面經濟夥伴關係（RCEP）有相當正面的幫助。

星國輸往我國貨品超過8成將降為零關稅，對傳統產業的衝擊相當劇烈，但朝野政黨並沒有傳出懼怕或負面的聲音，對ASTEP完全肯定，顯示台灣對於經濟自由化的認知並沒有走回頭路。這也證明兩岸服貿協議的觸礁，完全是民進黨堅持台獨立場，而非保護主義作祟，民進黨應該說明清楚自己的經濟戰略立場為何，反服貿究竟是反中或反自由化？

另一方面，ASTEP配套的規畫相當完整，例如對於衝擊敏感行業，降稅分成5、10、15年三階段完成，給予業者足夠的時間來因應。而擔心東南亞他國搭便車享受 ASTEP優惠，我方要求必須提供原產地證明，政府也會有嚴格的查證機制，與新加坡政府也會加強合作審查，來遏阻過水或假報產地的違法行為。因此相信只要政府能夠有全盤的規畫，充分的溝通，自由化的推動是可行的。

立法院未來審議兩岸服務貿易協議及後續要簽訂的貨品貿易協議，應該記取經驗。目前國人所擔心的服貿問題，基本上大都是溝通不良造成的情緒性反彈，及「洗頭兼洗腦」等政治鬥爭訴求的後遺症。未來行政院一定要加強溝通，部會首長應站出來說清楚、講明白，把國安的疑慮去除，政治的恐共化解，讓經濟的效益能凸顯出來，以說服百姓。

最後，有關ASTEP的投資促進、保障、自由化，服務業及電子商務的互相開放，不但對雙方都有好處，對於台灣服務業附加價值的創造尤其重要。協議中雙方同意提供對方服務提供者國民待遇；且不得採取數量、交易、資產總值、經營形式等要求，或規定設立營業據點等影響服務提供者市場進入機會之限制措施。　眾所周知，新加坡在金融、管理、教育、博弈等諸多服務業已經是國際佼佼者。金融開放及財富管理業務，更是星國平均國民所得達到年均5萬美元的重要推手。

新加坡政府提供服務業良好的經營環境，採負面表列方式監理，管理規則明確，法制嚴明。由於語言及文化的相通，台灣教育及財富管理業大可以布局新加坡，共享星國打造的東南亞甚至國際市場。而星國對我製造業及服務業的直接投資（FDI），將帶來國際資金活水及進步管理，可以提升我薪水及創造就業機會，讓我國悶經濟有解套機會。政府採購的開放及交流，也可讓台灣政府學習新加坡的效率管理，尋求治理的突破。以上種種都是我們認為目前經濟部低估ASTEP效益的原因。

台星ASTEP協議，雖然從民進黨時代就說要簽，但看來近3年的談判，還是經歷很不簡單的過程才能達成協議。這裡我們該給談判小組一個熱烈的掌聲。在政府與民間共同迎接ASTEP帶來自由經濟新時代的同時，不要忘了還躺在立法院的服貿協議。