“AmCham...notes with concern that Taiwan appears to be falling behind the other three ‘aging’ Asian Tigers in economic competitiveness,” said Jane Hwang, president of AmCham, in her opening remarks at the news conference.

She noted that the mature economies of Hong Kong, Singapore, and South Korea can still attract investment, while new Asian Tigers China, India and Vietnam are also rapidly gaining strength.

AmCham Executive Director Richard Vuylsteke, cited the high turnover of government officials over the last seven years as a major deterrent to the country’s economy.

“Let’s face it. If you’re going to run an organization ...you have to have clear consistent leadership over a period of time ... and it’s very difficult to do that with a lot of change in leadership,” he said.

In terms of regulatory morass, Hwang remarked on inadequate transparency, violation of due process, legislator interference on behalf of private interests, inconsistent interpretations and enforcement, and regulations inconsistent with international best practices.

Vuylsteke called for the government to get rid of negative import list of products from China, not just to help foreign investment, but also to create jobs for locals.

“Indirect routes drive up cost, which means you can’t distribute as well...you don’t create jobs...and (ultimately) can’t develop a business,” he added.

Hwang said AmCham also voiced the Taiwanese people’s pleas to put an end to a protectionist mindset that discourages foreign investment and job creation, and also called for the enforcement of intellectual property rights (IPR) policies, and the insistence on legislative transparency to reduce corruption.

In reference to the “three links” issue, Hwang called for regular direct flights across the Strait to “keep families together at a time when nearly five percent of the population lives in China.” “Just do it!” she added.

The “three links” refer to direct trade, transport, and postal links with China. Of these, the issue of direct flights has the most controversial one as mainland-based Taiwanese businessmen want to cut time and expense for passenger and cargo transport across the strait.

Taiwan and China split in 1949 when the Chinese Nationalist government lost the Chinese Civil War and set up a government-in-exile in Taiwan. Since then, Taiwan has banned sea, air and trade links with China.

To expand and re-energize the trade relationship with the U.S., Hwang suggested cooperation in service-sector development, swift progress in Trade and Investment Framework Agreement (TIFA) negotiations, and a bilateral government procurement agreement.

Echoing what American Institute in Taiwan (AIT) Director Stephen M. Young said at a news conference earlier this month, Vuylsteke remarked that the chamber’s focus is on a TIFA and not on a Free Trade Agreement (FTA).

“Taiwan is already involved in a TIFA, and ... that process in many respects has parts of an FTA involved,” said Vuylsteke, adding that talks on bilateral government procurement, tax, and investment agreements are also under way.

In accordance with past practice, AmCham will send a delegation to discuss White Paper issues and related matters with American officials and representatives in the U.S. capital in June.

“When we go to Washington...our lobbying is not going to be for an FTA...(but) for extending the president’s Trade Promotion Authority so that we can go back to FTA,” said Vuylsteke.