Transcript PowerPoint 簡報 - Organization of American States

Benefits to Bilateral Trade and
Investment from the ROC-Panama FTA
Bureau of Foreign Trade
Ministry of Economic Affairs
August 2003
1
Contents
 The introduction of the ROC-Panama FTA
 The economic benefits of the ROC-Panama FTA
for goods
 The economic benefits of the ROC-Panama FTA
for services
 The economic benefits of the ROC-Panama FTA
for investment
 Conclusion
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The Introduction of the ROC-Panama
FTA
3
Why the ROC choose Panama as its first
partner for an FTA
 The willingness of trading partners ,the FTA
strategies of the ROC and the impact to our
domestic industries
 the geographical advantages of Panama
4
The Bilateral trade of Panama and the ROC
2001
Year
ROC exports to
Panama
ROC imports from
Panama
Trade value
2002
2003 (1-7)
Amt
(million)
Growth
(%)
Amt
(million)
Growth
(%)
Amt
(million)
Growth
(%)
123.96
-37.17
127.36
2.74
62.38
-24.68
4.21
160.1
4.81
14.17
2.46
-18.971
128.17
-35.56
132.17
3.11
64.85
-24.485
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The Negotiation of ROC- Panama FTA
first round : Oct.3-4, 2002 in Panama
second round : Jan.13-17, 2002 in Taipei
Third round : Mar. 17-21, 2003 in Panama
 Fourth round : May 19-23 in Miami
special meeting for agriculture:
June 20, 2003 in San Francisco
Fifth round: Aug.1-10 in Taipei
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The ROC-Panama FTA
The ROC-Panama FTA is the ROC’s first
The presidents of both countries has
signed the Agreement during the ROC and
Central American countries summit on
August 21, 2003 in Taipei
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The Content of the ROC-Panama Agreement(1)
Preamble
Ch1. Initial Provision
Ch2. General Definition
Ch3. National Treatment and Market Access for Goods
Ch4. Rules of Origin
Ch5. Customs Procedures
Ch6. Safeguard measures
Ch7. Unfair Trade Practices
Ch8. Sanitary and Phytosanitary Measures
Ch9.Measures on Standards, Metrology and
Authorization Procedures
Ch10. Investment Services and Related Matters
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The Content of the ROC-Panama Agreement(2)
Ch11. Cross-border Trade in Service
Ch12. Financial Service
Ch13. Telecommunications
Ch14. Temporary Entry for Business Persons
Ch15. Competition Policy
Ch16. Intellectual Property
Ch17. Transparency
Ch18. Administration of the Agreement
Ch19. Dispute Settlement
Ch20. Exceptions
Ch21. Final Provisions
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The Economic Benefits of the R.O.C.Panama FTA on Goods
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Pre-ROC-Panama FTA Tariff Rates:
Present tariff rates on Panama imports to ROC: 3.46%
(5.7% for agricultural products, 0.3% for industrial
products )
Panama tariff rates on ROC exports: 6.37% (10.27% for
agricultural products, 6.19% for industrial products )
In 2002, the ROC had a US$122 million trade surplus
with Panama, 25 times the value of Panama exports to the
ROC
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Pre-FTA ROC-Panama Trade in Goods
Despite many industrial products manufactured in
the ROC enjoy a comparative advantage, few are
sold to Panama for the following reasons：
Large geographical distance
Lack of familiarity with Panamanians consumption
habits
Panama’s small domestic market
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Post-FTA Trade in industrial products :
 Reduced tariffs and lower costs will increase interest
of manufacturers.
 Bilateral exchanges will increase manufacture’s
familiarity with Panama market conditions and needs
 Panama Products expected to export to the ROC:
men’s and children’s underwear, jackets, suits, shirts,
women’s blouses and men’s undershirts
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ROC Tariff Reduction Schedule
ROC
Total
Agriculture
Industry
Implemtation
Period
Number
of Items
%
Number
of Items
%
Items
%
A
6187
0.7121
670
0.4425
5517
0.769
B
1729
0.199
297
0.1962
1432
0.1996
C
532
0.0612
335
0.2213
197
0.0275
EXCL.
192
0.0221
164
0.1083
28
0.0039
Q
48
0.0055
48
0.0317
-
-
Total items
8688
1
1514
1
7174
1
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Panama Tariff Reduction Schedule
Panama
Total
Agriculture
Industry
Implemtation
period
Number
of Items
%
Number of
Items
%
Number
of Items
%
A
4181
0.4874
570
0.4045
3611
0.5036
B
1934
0.2253
186
0.132
1748
0.2437
C
2042
0.238
337
0.2392
1705
0.2378
EXCL.
423
0.0493
316
0.2243
107
0.0149
Q
-
-
-
-
-
-
Total items
8580
1
1409
1
7171
1
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The Percentage of Zero-tariff items of ROC
ROC
Total
Agriculture
Industry
Implemtation
Period
Number
of Items
%
Number
of Items
%
Number
of Items
%
Zero-tariff
6187
0.7121
670
0.4425
5517
0.769
Zero-tariff
after Ten Years
8448
0.9723
1302
0.86
7146
0.9961
Total Items
8688
1
1514
1
7174
1
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The Percentage of Zero-Tariff items of Panama
Panama
Total
Agriculture
Industry
Implemtation
Period
Number
ofItems
%
Number
of Items
%
Number
of Items
%
Zero-tariff
4181
0.4874
570
0.4045
3611
0.5036
Zero-tariff
after ten years
8156
0.9507
1093
0.7757
7063
0.9851
Total Items
8580
1
1409
1
7171
1
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The ROC’s Tariff Reduction on Panamanian
Agricultural Products :
 Reductions will go into effect immediately for tariffs on some
live animals and fish (chapters 1 and 3), coffee (chapter 9),
oil seeds and fruits (chapter 12), gums and resin (chapter 13),
plant materials (chapter 14), and plant and animal oils
(chapter 15).
 The ROC open up tariff quotas for certain Panamanian
products (pork belly,mackerel, sardine and herring, carangid,
liquid milk, bananas, pineapples, meat of fowls, meat offal of
fowls, and refined sugar) at a rate equivalent to between 2
and 14 % of the ROC’s WTO tariff quotas for 2004.
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The Panama’s Tariff Reduction on
ROC Agricultural Products :
Panama will open up its markets to ROC agricultural
products such as fish and other aquatic invertebrates
(chapter 3), products of animal origin (chapter 5), live trees
and other plants (chapter 6), grains (chapter 10), oilseeds
and fruits (chapter 12), and gums and resins (chapter 13).
Certain agricultural products from the ROC, including
eels, benito, beans and vegetables, and fruits, should see
increased exports after Panama opens up its markets. 19
The ROC’s Tariff Reduction on Panamanian
Industrial Products :
Reductions will go into effect immediately for tariffs on
dyes, cosmetic, photographic goods (chapters 29 to 38),
plastics (chapter 39), paper products (chapter 48), manmade fabrics, cotton and fabrics (chapter 54 and 58), shoes
(chapter 64), steel products (chapter 73), base metals
(chapter 82 and 83), machinery (chapter 84), electrical
equipment (chapter 85), optical instruments (chapter 90),
and miscellaneous manufactured articles (chapter 96).
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The Panama’s Tariff Reduction on ROC
Industrial Products :
The ROC enjoys advantage in terms of industrial products,
especially in areas such as textiles, dyes, machinery and
mechanical appliances, printed circuits assemblies, monitors,
automobile parts, and motorcycle parts.
The ROC can expect to see a considerable increase in export
opportunities after the FTA goes into effect.
 Given the complementarities of the industrial structures of the
two countries, the agreement will be sure to create a win-win
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situation for both countries once it goes into effect
Ten years after the agreement goes into effect, the ROC will
allow 97% of all Panamanian products to enter its market
tariff-free, with Panama allowing 95% of all ROC products to
enter its market tariff-free.
In the first year after the FTA goes into effect, the ROC will
save an estimated US$500,000 in tariff payments on exports
to Panama, with savings expected to grow to at least US$1.3
million after ten years. Likewise, Panama can expect to see
substantial tariff savings on its exports to the ROC.
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The Economic Benefits of the R.O.C.Panama FTA on Services
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Benefits of Legal Assurance
(Investments)
National Treatment and Most-Favored-Nation
Treatment
No Performance Requirement unless specified
in the negative list
No Nationality Requirement of Senior
Managers unless specified in the negative list
Investors Can Sue the Government to settle
disputes
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Benefits of Legal Assurance
(Cross-Border Trade in Services and others)
Cross-Border Provision of Services without
Commercial Presence should be allowed unless
specified in the negative list
Facilitate the Temporary Entry of Business Persons
Establish Committees to Monitor and Review the
Enforcement of this Agreement
Telecom: access to networks, anti-competitive
behaviors forbidden, laboratory test recognition
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Benefits of Market Access (1)
Negative list: Enabling bilateral commitments of
larger extent of market access, with reservations made
for the sectors by listing legal measures that do not
conform to the articles of this FTA.
Exceptions(1): Measures beyond the scope of this
FTA: such as government services, government
procurement, air services under traffic rights.
Exceptions(2): Measures maintained by local or
municipal governments.
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Benefits of Market Access (2)
WTO-plus (FTA>WTO) of this FTA
ROC
Panama
Larger
extent
market
access
Health and Social;
Transport; Recreation,
Cultural, and Sports
Services
Business; Health and
Social; Communications;
Tourism; Recreation,
Cultural, and Sports;
Transport Services
Certain
extent
market
access
Business; Financial;
Communications;
Tourism Services
Distribution; Education;
Financial Services
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Benefits to Market Access (3)
Example- Multi-Modal Transport: ROC maritime
and air transport investors are allowed to invest 100%
in Panamanian road transportation companies.
Example- Financial: Panamanian banks without
being ranked as top 500 or 1000 of the world’s banks
are granted a waiver to establish branches in ROC.
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Benefits Market Access (4)
Example-Telecommunications: For Panamanian
investors, they can invest up to 49% of telecom
companies in ROC, not the 20% ceiling in ROC’s WTO
commitments. For ROC investors, they can invest in
value-added services in Panama.
Example- R&D, leasing, market survey, technical
testing and analysis, advertising, equipment maintenance:
these business-related services are opened for foreigners
to provide services.
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Benefits of Corporate Strategy (1)
ROC’s Advantage
Location: heart of east Asia economic zone.
Korea
China
Japan
ROC
ASEAN countries
high-tech industries and supporting services such as
R&D, transportation, financial, and
telecommunications.
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Benefits of Corporate Strategy (2)
Panama’s Advantage
Location: heart of Americas and bridge of oceans.
NAFTA
Pacific Ocean
Panama
Atlantic Ocean
Latin America
Canal; Colon Free Zone ; No foreign exchange risk
against US$
Member of future FTAA
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The Economic Benefits of the R.O.C.-Panama
FTA on Investment
32
The ROC investment in Panama
The Firms
Amount（Unit:million）
58
932.76
The Main Investors
Evergreen Group、ICBC 、Central Trust of China、Yihsin
Plastic Corporation、OECC
Shipping, Finance, Management of export-processing zone,
The Main Industries Plastic processing, construction, Import-export business,
Restaurant, Retail
Resource: IDIC, MOEA
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Panama could serve as Gateway to
FTAA
The FTAA (free trade agreement of the Americas)
will be completed by 2005.
Panama and the other American countries will combine
with the North American Free Trade Area to form the
biggest economic entity in the world, a $13 trillion market of
34 countries and nearly 800 million people .
This will make Panama an even more attractive destination
for investment from Taiwan.
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Geographical Advantage of Panama
Panama is located at the central point of
Central America and serves as a link between
North and South America, and between the
Pacific and Atlantic ocean
It also offers high-quality manpower, and it
has become a base for investment by
Taiwanese companies.
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Investment Protection Agreement
The ROC signed an investment protection agreement
with Panama in March, 1992, providing an extra level of
assurance for investors.
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Conclusion- benefits After the
signing of the ROC-Panama FTA
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The Benefits After the Signing of the
ROC-Panama FTA
the industries of ROC and Panama are
complementary
Expanding the overseas market
Increasing bilateral economic corporation and
serving as the gateway for FTAA
Increasing the willingness of other trading partners to
negotiate an FTA with ROC
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Taiwan
Your Global Market Partner
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