tely have an adverse impact on Taiwan, which has been a major rival to South Korea in terms of industrial production and export trade, Minister of Economic Affairs Chen Ruey-long said yesterday. It is certain that the U.S.-South Korea free trade pact -- expected to be signed shortly as bilateral talks are slated to wrap up by today -- will have an effect on Taiwan, although how much and to what extent remain to be seen, Chen said.
It is believed that the U.S.-South Korea agreement will have little impact on Taiwan's agriculture sector, though South Korea may increase its imports of U.S. agricultural products under the stipulations of the agreement, which might have the side effect of benefiting Taiwan in terms of the island's imports, Chen analyzed.
The U.S.-Korea FTA will also have minor impact on Taiwan's information technology (IT) industry since the export of most IT products are duty-free under international practices, Chen said.
As to other industrial sectors, Chen said, the Economics Ministry will pay close attention to the contents of the U.S.-Korea FTA to see how it will affect related sectors in Taiwan's economy.
He added that the Economics Ministry is watching closely to determine whether the U.S.-Korea FTA will prompt more U.S. companies to invest in South Korea or bring about closer cooperation in business and trade sectors between the two countries.
