The draft"free economic exemplary zonea"program is scheduled to come out in November.Yiin Chii-ming,minister of the Council for Economic Planning and Development(CEPD),noted yesterday(Sept.26)that there will be two sets of management modes in the zone,granting super-WTO(World Trade Organization)treatment to foreign firms and WTO treatment to mainland Chinese firms.
WTO treatment refers to commitments to all WTO members made by Taiwan upon its accession to the WTO membership.These commitments will be applicable to all mainland Chinese firms in the free economic exemplary zone.
In soliciting mainland Chinese firms to station in the exemplary firm,the regulator will place priority on those firms which can supplement the local industry,such as home-appliances brands which can help Taiwanese FPD(flat panel display)firms consolidate their export and auto brands which can help local auto and auto parts firms tap the mainland Chinese market.
Due to the special cross-Taiwan Strait condition,Taiwan doesn't provide treatments to mainland Chinese firms equal to those for foreign firms,including the treatments available to mainland Chinese firms under the auspices of ECFA(Economic Cooperation Framework Agreement).In the free economic exemplary zone,mainland Chinese firms will enjoy WTO treatment,marking a milestone in the development of cross-Strait economic and trade relationship.
Yiin noted that the government will relax the restrictions for the entry of foreign and mainland Chinese firms into the exemplary zone;foreign firms will be entitled to super-WTO treatment,so long as they contribute to the nation's major industrial development.
Presently,mainland Chinese firms can only invest in the items included in a list formulated by the government.In the future,mainland Chinese firms allowed to enter the exemplary zone will be able to invest in hi-tech businesses,similar to the existing treatment for foreign firms.
Yiin remarked that initial evaluation shows that Kaohsiung City can meet the conditions for the setup of the exemplary zone.The CEPD,however,will also accept applications by other municipal governments for the establishment of the exemplary zone,taking into account such factors as municipal development,infrastructural facilities,and balanced regional development.
