Economics minister remark on US investment 'only a reference': Agency

Taipei, Aug. 5 (CNA) The Ministry of Economic Affairs has objected to characterizations that Taiwan has committed to invest US$400 billion in the United States to get its 20 percent tariff rate lowered, after the agency's head said such a deal might be necessary.

At a seminar in Kaohsiung Monday with business representatives, Economic Minister Kuo Jyh-huei (郭智輝) was quoted as saying that Taiwan might have to invest US$400 billion in the United States to get a lower tariff rate and asked if it should be the public or private sector that makes the investment.

Some interpreted the comment as though Taiwan had already made a commitment on the issue, but the ministry said Kuo brought up the number "only as a reference," based on the examples of Japan and South Korea -- Taiwan's major competitors.

Japan and South Korea both secured 15 percent tariff rates on goods shipped to the United States after making vague investment commitments, while Taiwan faces a 20 percent rate starting Thursday.

Taiwanese officials, including President Lai Ching-te (賴清德), have said the figure was "provisional" and that efforts were being made to bring it down.

"[The minister] did not mean the government has made a concrete commitment to investment or that related talks are underway," the ministry said in a statement.

"Now we are the third to talk [with the U.S.]," Kuo was cited as saying by the ministry, referring to Taiwan coming after Japan and South Korea, "so it is likely not US$300 billion or US$350 billion, but something more like US$400 billion."

Kuo said he hoped to use the seminar to solicit good ideas so that the government can help local companies stay competitive in the future, according to the ministry.