Take action on economy: ECCT

Speaking at a press conference upon the release of the annual report, ECCT Chairman Philippe Pellegrin said, "The Cabinet must capitalize on its recent achievements [with China] and seize the momentum."

"Now is the time for the government to demonstrate firm leadership in executing the bolder economic reforms that are necessary to revitalize consumption, create jobs, and strengthen competitiveness," he added.

Although the ECCT acknowledged that the recent breakthrough in cross-strait economic and political relations has given Taiwan renewed business potential, Pellegrin pointed out that the global economic slowdown has undermined the island's growth prospects, bringing about new issues and recommendations at the core of the chamber's 2008-2009 position paper.

To fully capitalize on its strategic location, competitive high-tech industrial base, and talented human resources, he noted that Taiwan must swiftly take advantage of its cross-strait achievements, implement bolder tax reforms, proactively conform to international standards, and eventually open up public procurement.

Past economic successes do not guarantee a favorable outcome for the future, as the international environment has changed dramatically since the 1990s, he continued.

"The economic challenges and remedies differ substantially from those of the past and the Cabinet should execute economic policies that are built on the current economic realities," he stressed.

In addition to the recommendations included in this year's Position Papers, ECCT CEO Guy Wittich explained that 21 ECCT industry and support committees raised a new record of 174 issues (163 in 2007).

Accordingly, there has been mounting frustration among members over some 128 issues that remain unresolved last year, in particular those affecting government procurement, pharmaceuticals product certification and the PRC import ban.

The committees also raised some 46 new issues, including such issues as lengthy and costly product approval process in various industries, inconsistent law interpretation, new taxes, and customs handling inefficiencies, Wittich indicated.

Further, he emphasized that the ECCT study on an EU-Taiwan trade enhancement measures (TEM) agreement, conducted by Copenhagen Economics, shows that fully liberalized trade would boost annual European GDP by 2 billion euro and Taiwan GDP by 3.8 billion euro, or about 1 percentage point, creating more jobs and production output for both sides.

"Full open trade between the EU and Taiwan would substantially increase business opportunities not only in Taiwan and China but also other neighboring countries with a strong Taiwanese business presence, in particular ASEAN countries," Pellegrin said.

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