Taiwan-Japan trade protection pact enlarges market openness

According to Japanese newspaper Asahi Shimbun, the two countries will formally sign an investment protection pact Sept. 22 at the earliest, when Mitsuo Ohashi, chairman of the Japan Interchange Association (JIA), makes his first trip to Taiwan Sept. 22-24 in his capacity as chairman.

An official with the economic ministry declined to confirm the report, but said the pact will be different from similar pacts between Taiwan and other countries. It will not only involve investment protection, but will also include bilateral investment promotion and liberalization.

For the open market principles involved in the investment liberalization, the official said both sides will propose a list of products to be eligible under national treatment and most-favored-nation treatment.

The official, who preferred not to be named, revealed that Japan, Taiwan's main source of foreign investment, does not have doubt in the implementation of an open market, but cares more about how Japanese investors' rights and interests will be safeguarded.

A dispute arbitration mechanism will be listed in the pact, he said.

Once signed, the pact is expected to bring another wave of Japanese investment to Taiwan, said the official, who added that Taiwan-Japan relations have become closer after the March 11 earthquake and the signing of a major trade pact between Taiwan and China.

Meanwhile, the report said that an open skies agreement will also be signed during Ohashi's visit. The agreement will liberalize bilateral commercial aviation exchanges.

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