JCCI Taipei white paper calls for removal of Taiwan regulatory hurdles

Taipei, Oct. 4 (CNA) A group representing Japanese businesses in Taiwan issued a policy white paper Friday calling for the easing of regulations that hinder investment from Japan in Taiwan's wind energy and semiconductor industries, and for an economic partnership pact between the two countries.

The Japanese Chamber of Commerce and Industry Taipei (JCCI Taipei) listed freer trade relations, fostering a good investment environment, and promoting exchanges between students and businesses as key measures in its annual policy white paper presented to National Development Council chief Liu Chin-ching (劉鏡清).

The white paper was delivered by JCCI Taipei chairman and Mizuho Bank Taiwan Branch General Manager On Murata during a press event in Taipei.

To encourage Japanese investment in Taiwan, the JCCI Taipei called in its white paper for a stable relationship between Taiwan and China, efforts to reduce shortage of workers, talent, electricity, water supplies and affordable sites, and the elimination of regulatory hurdles for Japanese businesses.

The amendment to the Statute for Industrial Innovation passed in 2023 seeks to drive foreign investment in equipment and research and development in Taiwan, but there have been no Japanese investment projects that meet requirements under the law, such as a minimum amount of spending, the JCCI Taipei said.

In the wind energy sector, Japanese businesses have been deterred by the requirement a high percentage of components must be supplied by Taiwanese manufacturers, which the JCCI Taipei said is difficult to achieve in reality.

Renewable energy, along with biotechnology are two sectors where the JCCI Taipei said Taiwan and Japan can work together, in addition to the semiconductor and artificial intelligence industries.

In response, Liu said at the press event that Taiwan will look into the issues brought up in the white paper and relevant laws and regulations to build a friendlier investment environment for Japanese businesses and foreign investors.

"There is room for improvement we can make," said Liu, citing a 0.9 percent decline in Japanese investment in Taiwan in 2023, compared with a 55 percent surge in Taiwanese investment in Japan the same year.

Meanwhile, the JCCI Taipei said that China's suspension of favorable import tariff on products from Taiwan under the Cross-Straits Economic Cooperation Framework Agreement signed between both sides of the Taiwan Strait in 2010 impacted not only Taiwanese businesses, but also Japanese businesses.

Citing the economic partnership agreements Taiwan signed with New Zealand and Singapore, the JCCI Taipei said the governments of Taiwan and Japan should also negotiate and sign such a pact to reduce trade barriers.

On Taiwan's bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) signed in 2018 by Japan and 10 other countries, the JCCI Taipei said it hopes the Japanese government will formally support Taiwan's swift accession to the trade block.

A Taiwan-Japan economic partnership pact is one of the changes in wording from the JCCI Taipei's call for a free trade agreement between Taiwan and Japan in its white papers in 2022 and 2023. Other changes include the removal of "strongly" and "proactively."

The JCCI Taipei highlighted the move Taiwan made in September to further relax restrictions on food imports from Fukushima and four other Japanese prefectures as major progress following its years of calling for eased restrictions.

Taiwan banned food imports from five Japanese prefectures following the March 11, 2011 earthquake, subsequent tsunami and nuclear power plant meltdown. It began lifting the ban on certain items in 2022 under conditions, such as the requirement of radiation test results.

The JCCI Taipei will seek the removal of all restrictions on food imports from the five Japanese prefectures, it said in the white paper.

According to the JCCI Taipei, the goal set out in this year's white paper is to build seamless economic cooperation and developments between Taiwan and Japan by 2030, with specific targets, including growing bilateral trade between the two countries to 1.5 times the current amount.

In 2023, trade between Taiwan and Japan totaled US$75.77 billion, 14.13 percent lower than the previous year, government data shows.