ECCT urges gov’t to step up internationalization effort

"Interpretation of regulations in Taiwan is very much up to tax examiners." He went on to say that depending on who is judging a company's books, additional questions or different interpretations might follow.

"That makes things unpredictable for companies," he said.

Another of the ECCT's major concerns is Taiwan's tendency to over-regulate foreign companies through various "Taiwan-only" regulations, rather than abiding by existing international regulatory standards.

"Of course regulations are necessary but that should not be to the point where every aspect or detail of the business is regulated," he added.

Scheller noted the government sometimes implements new regulations as an emotional response, without researching the implications of these regulations thoroughly enough, and without giving foreign companies enough time or prior notice.

"What is the impact of 'double testing' on the retail industry in Taiwan," Guy Wittich asked rhetorically, ECCT's chief executive officer.

Wittich said that small importers could not afford to abide by new regulations overnight. Further, the costs of recalling products and re-labeling them would automatically translate into price hikes for consumers.

Given the current ban on the direct importation of garments from China, it would be impossible for a European company like Zara to set up shop in Taiwan because 80 percent of its products are made in China, he explained.

"We need consistency in the way regulations are being implemented," he said, hoping that candidates from both parties would take ECCT's counsel, and work toward achieving economic development rather than focus on political issues.

"Time is not on the side of Taiwan," he stressed as he recalled that officials often make promises of reform on the spur of the moment, while later on, nothing really changes.

Wittich noted that it is ECCT policy not to comment on party political issues as its interests lie in improving the regulatory and economic environment in Taiwan.

With two major elections planned in early 2008, he explained that the ECCT will emphasize two major aspects. First, the chamber is going to expand the scope of its WTO committee, which will be in charge of studying bilateral agreements between Taiwan and EU countries, as well as between Taiwan and other Asian nations.

Second, the ECCT will strive to help Taiwan better internationalize, and develop its domestic market into a knowledge-based economy.

"Seeing is believing," said Wittich, who hoped the government would put a priority on developing the economy. Chairman Scheller added that European corporations, who make up the bulk of ECCT membership have extensive experience in business and technological expertise. Taiwan would do well to strengthen its economic cooperation with European companies for the mutual benefit of the EU and Taiwan.

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