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APCAC Appeals to Congressional Leadership to Approve TPP by Year’s End

Signed by 25 American Chambers of Commerce in Asia-Pacific, a letter demonstrating unprecedented unity and urgency was addressed to the Leadership of the U.S. Congress urging them to ratify the TPP agreement before the end of 2016.

APCAC’s collective membership represents more than 15,000 companies, 50,000 overseas American workers, and annual trade and investment volumes exceeding US$600 billion.

The letter highlights five key areas that TPP would address, enabling U.S. companies to compete against formidable Asian and European multinationals in the Asia-Pacific Region:

  1. Improving market share in Asian markets and supply chains
  2. Equalizing existing disadvantages from Asian Free Trade Agreements (FTA’s)
  3. Eliminating barriers that undermine U.S. innovations and standards
  4. Protecting opportunities in emerging markets
  5. Enhancing opportunities to shape positive outcomes.

Click here to read and download the full letter.

 

 

AmCham Holds Meetings with Members of Congress

Congressman David Schweikert (R-AZ), accompanied by his wife Joyce and research assistant Katherine Duveneck, paid a visit to AmCham Taipei on October 20 as part of a week-long stay in Taiwan. Although Schweikert has been a longtime supporter of strong U.S.-Taiwan relations, this was the first time for him to come to Taiwan.

Currently in his third term in Congress, Schweikert serves on the Financial Services Committee. His discussion with AmCham Senior Director Don Shapiro and Senior Director for Government and Public Affairs Amy Chang centered largely on trade and energy issues. The Congressman said he is a firm proponent of the Trans-Pacific Partnership, but is unsure in the current political atmosphere in the United States whether the TPP will receive Congressional endorsement. He expressed regret that the major U.S. business organizations did not make a stronger early push for TPP, giving its opponents the opportunity to shape public opinion.

On energy, Schweikert said it is important to make optimum use of all forms of available energy, including nuclear as an efficient and non-polluting source. He said he hopes to encourage cooperation between Taiwan and Arizona companies for the developent of renewable energy resources here, especially solar.

Earlier in the month, Congressman Joe Barton (R-TX) was in Taiwan, and Don Shapiro represented AmCham in attending a dinner held in his honor by Foreign Minister David Lee.

Special Event – Countdown to the US Election

For those expecting fireworks, the AmCham’s Special Luncheon, “Countdown to the 2016 US Presidential Election,” on Oct 19, might have been a disappointment. Rather than political discord, attendees were instead treated to reasoned analysis of the U.S. presidential campaign and its possible ramifications on U.S. policy toward Asia by two keen observers of U.S. politics and Asia policy: William A. Stanton, Founding Director, the Center for Asia Policy (CAP), National Tsing Hua University (NTHU) in Taiwan and former AIT Director; and Ross Feingold, Senior Adviser at DC International Advisory.

Moderated by Paul Cassingham, Senior Legal Consultant at Eiger as well as a former AmCham Chairman and current Government Relations Committee Chair, the luncheon featured 15-minute presentations by each of the speakers, followed by Q&A and open discussion.

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William A. Stanton, Founding Director, the Center for Asia Policy (CAP), National Tsing Hua University (NTHU) in Taiwan and former AIT Director, presents his analysis of the US election’s potential impact in Asia.

Stanton’s presentation, The U.S. Presidential Election and What it Means for Asia, focused on four key areas:

  • U.S. Policy toward China
  • U.S. Policy towards Taiwan
  • the Trans-Pacific Partnership
  • and the South China Sea

He noted that both of the candidates talked tough on China, with Trump’s criticisms primarily economic while Clinton’s were more broadly aimed at China’s poor human rights record, its growing military might, accusations that China is wielding an army of cyber-attackers aimed at the United States, and its lack of democracy.

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Ross Feingold, Senior Adviser at DC International Advisory, presented a broader overview of the election process up to this point.

Feingold, who identified himself as a Republican who does not support Trump, focused more broadly on the bruising primary and presidential campaigns and how each candidate has fared. He noted that while recent email leaks and other public relations disasters have resulted in low public approval for Clinton, Trump’s approval ratings are in the basement, resulting in a distinct advantage for Clinton. Feingold also said that the Democratic Party’s platform remains focused on the “One-China” policy, while the Republican Party platform is more detailed and more supportive of Taiwan.

Participants joined in a lively discussion over what the election might mean for Taiwan, including the chances of the TPP being passed under either candidate. Stanton and Feingold concurred that although both candidates expressed disapproval for the TPP, Clinton would more likely re-open negotiations for the Pacific-wide trade agreement. Regarding another issue of concern for U.S. expats in Taiwan, Clinton has expressed support for the FATCA exemption on bank reporting. The Trump campaign has said nothing on this matter.

TPP Insights from Washington DC

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Most of the reporting from the United States these days paints a bleak picture of the prospects for the Trans-Pacific Partnership (TPP) trade agreement to be ratified by Congress. But at AmCham Taipei’s “TPP: Insights from Washington D.C.” luncheon event at the Mandarin Oriental Hotel on September 13, the speakers cautioned the audience “don’t believe everything you read.”

Speaking were Wendy Cutler, formerly the lead U.S. negotiator for TPP and now vice president and managing director of the Washington office of the Asia Society Policy Institute, and Tami Overby, senior vice president, Asia, at the U.S. Chamber of Commerce.

Although there is heightened anxiety in the United States about the country’s economic future, with trade often unfairly blamed for the loss of manufacturing jobs, polls show that a majority of Americans still support free trade in general and the TPP in particular, Cutler said. Given the high priority that President Obama has attached to TPP passage, and the continued support from most of the Congressional leadership, she said she expects ratification to occur during the lame duck session of Congress that follows the November elections.

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Citing the importance of TPP as a high-standard trade pact that will bring economic benefits while also bolstering American leadership in Asia, Overby quoted Winston Churchill as saying “You can always count on Americans to do the right thing – after they’ve tried everything else.”

Cutler urged the Taiwan government not to wait, but to proceed to undertake reforms to prepare to be considered for TPP entry in a second round. She noted that investors are already beginning to think in terms of a post-TPP world, choosing to locate their investments in TPP economies because of the strong IPR and legal protections.

Among the special guests at the luncheon were Minister without Portfolio John Deng, who is in charge of Taiwan’s efforts to become TPP-ready; Bureau of Foreign Trade Director-General Jen-ni Yang; Chairman Francis Liang of the Taiwan External Trade Development Council (TAITRA); Connie Chang, Director General of the Department of Overall Planning at the National Development Council; and Jeff Horwitz, chief of the Economic Section at the American Institute in Taiwan.

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Paul Cassingham on Taiwan’s Path to TPP

The Trans-Pacific Partnership (TPP) is a multinational trade agreement between 12 Pacific Rim nations that has significant implications for Taiwan’s economic future.

One of AmCham Taipei’s top priorities this year is encouraging the Taiwan Government to coordinate its efforts towards meeting the standards required for TPP accession – an initiative emphasized in the 2016 AmCham White Paper.

Paul Cassingham, Senior Legal Consultant at Eiger as well as AmCham’s former Chairman and current Government Relations Committee Chair, has studied the TPP’s text with the aim of gaining a clearer understanding of exactly what impact the trade deal might have on Taiwan, if it comes into effect.

On August 16, he presented his findings to an audience at the AmCham Lincoln Room, at a Chamber event titled “TPP: Opportunities and Challenges for Taiwan”.

A brief summary of key points is available below.

Cassingham also authored an article on TPP for TOPICS Magazine, the Chamber’s monthly publication, which goes into greater detail on the issues Taiwan faces. Read it here:
“Taiwan’s Restrictions on PRC Investment – A Sleeping TPP Issue?”

This year’s AmCham Taipei Doorknock delegation also stressed the importance – for both Taiwan and the U.S. – of Taiwan entering the Trans-Pacific Partnership (TPP) when it expands beyond the original 12 members. Read a full report here:
2016 “Washington Doorknock” Focuses on TPP

 

Highlighted points from Mr. Cassingham’s presentation:

Taiwan & TPP Background

  • TPP Signatories include: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam.
  • Taiwan would be the 6th largest and 4th wealthiest economy in the TPP if it joined
  • Main trade benefit of TPP would be the reduction or elimination of most import duties among TPP economies

Why Join? 

  • If Taiwan doesn’t join TPP, it would be unable to compete with TPP exporters that benefit from reduced import duties
  • The negative impact is multiplied for Taiwan’s intermediate goods exports (70% of total)

Some Areas of focus for Taiwan

  • Improving procedures for technical regulations and reduction of technical barriers to trade. For example:
    • TPP members must publish proposed regulations 60 days in advance for public comment
    • TPP members must respond to significant issues raised regarding proposed regulation
  • Foreign investors must be allowed to remit investment cash freely into and out of Taiwan.
  • Cross-strait relations may play a role in whether or not Taiwan can gain entry into the TPP

AmCham Taipei offers its sincere thanks to Paul Cassingham for his time and effort spent studying the TPP text, and for presenting his findings to Chamber guests and community members.

2016 AmCham Taipei Washington Doorknock

2016 DK Senator John McCain

AmCham Taipei conducted its 2016 Doorknock mission to Washington D.C. from June 20 to 24. Pictured above: Arizona Senator John McCain with AmCham Chairman Dan Silver and other members of the group.

This year’s AmCham Taipei Doorknock delegation, led by Chairman Dan Silver and President Andrea Wu, stressed the importance – for both Taiwan and the U.S. – of Taiwan entering the Trans-Pacific Partnership (TPP) when it expands beyond the original 12 members.

At some points dividing into teams, the group met with representatives from 48 different offices and organizations, calling on members of the U.S. Executive Branch, U.S. Congress, the Taiwan Representative, and others. (See the full list below)

Doorknock Delegation with Congressman Matt Salmon (Arizona-R)

Delegation members with Congressman Matt Salmon (R-Arizona)

Key Takeaways

  • Although free-trade agreements have been the object of much criticism in the U.S. during this election year, the U.S. government remains committed to seeing the pact come into being. Progress is being made toward gaining broader U.S. industry support by resolving points of dissatisfaction that sectors such as pharmaceuticals and financial services have had with the TPP text.
  • A Congressional vote on TPP in a year-end “lame duck” session is a strong possibility, though not a certainty. Otherwise the vote would need to be either early in the next presidential term or after the 2018 mid-term elections.
  • Serious consideration of second-round TPP candidates will need to wait for the agreement’s entry into force. But Taiwan and Korea are being widely mentioned, along with the Philippines, Indonesia, Thailand, and Colombia.
  • China is already making known its opposition to Taiwan entering into TPP. Taiwan therefore needs to take urgent steps to demonstrate its qualifications – beyond any doubt – by showing firm commitment to international standards and practices. It also needs to work on resolving outstanding major trade issues with all 12 TPP countries.
2016 DK Ambassador Holleyman- USTR (1)

The delegation met with Ambassador Robert Holleyman, the Deputy U.S. Trade Representative

  • Preparations are under way for the annual U.S.-Taiwan TIFA talks to be held in Washington in the second half of the year. The U.S. side emphasizes the importance of making concrete progress on the various issues that will be on the table.
  • AmCham Taipei’s proposal for a second-generation Administrative Procedure Act met with enthusiastic support from many offices. There is appreciation that a single notification platform for proposed regulatory changes, ample time for the public to comment, and a mechanism for government agencies to respond would usher in a much more transparent and effective regulatory regime.
  • The U.S. government has been increasingly engaging with Taiwan in a wide variety of spheres. As the U.S. moves to devote more attention to Asia and the Tsai administration seeks to diversify Taiwan’s trade and investment, there should be more and more opportunities for productive cooperation between Washington and Taipei.
Delegation with Representative Erik Paulsen (Minessota)

Team members with Congressman Erik Paulsen (R-Minnesota)

 

Visits

U.S. Executive Branch

  • National Security Council
  • Department of State
    • Bureau of East Asian and Pacific Affairs
    • Bureau of Economic and Business Affairs
  • Office of the U.S. Trade Representative (USTR)
  • Department of Commerce – International Trade Administration
  • Department of Health and Human Services
  • American Institute in Taiwan/Washington
2016 DK Asst Secretary Kumar- Commerce

At the Department of Commerce, the group met with Arun Kumar, the Assistant Secretary for Trade Promotion

U.S. Congress

  • Offices of 10 Senators and 15 Representatives
  • House Ways and Means Committee staff
  • Senate Foreign Relations Committee staff
  • Congressional Research Service
2016 DK Senator Grassley

AmCham President Andrea Wu and Iowa Senator Chuck Grassley

Other Organizations

  • AdvaMed
  • Asia Society Policy Institute
  • Brookings Institution
  • Council for Strategic and International Studies
  • DPP Liaison in Washington
  • Emergency Committee for American Trade (ECAT)
  • National Foreign Trade Council
  • Peterson Institute for International Economics
  • PhRMA
  • Samuels International Associate
  • U.S. Chamber of Commerce
  • U.S.-Taiwan Business Council
  • U.S. -Taiwan Business Forum
  • U.S. Green Building Council

Taiwan Representative

  • Taipei Economic and Cultural Representative Office

AmCham Releases 2016 Taiwan White Paper at Annual Luncheon

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Revamping the Taiwan government’s rules-making procedures, preparing a stellar case for Trans-Pacific Partnership (TPP) candidacy, ensuring a stable and reliable supply of energy and water, and boosting Taiwan’s ability to attract and retain talent – these were the main recommendations presented by the American Chamber of Commerce in Taipei when launching the 2016 Taiwan White Paper on June 2.

Nearly a hundred AmCham Taipei members and guests gathered at the Regent Taipei for the release of the annual benchmark advocacy document, which provides the Chamber’s recommendations to the Taiwan government on ways to strengthen the Taiwan business climate. This year’s White Paper proposed a total of 80 suggestions from 20 AmCham committee plus three other industry groups.

Accepting the White Paper on behalf of the Taiwan government was Deputy Minister Kung Ming-hsin of the National Development Council (NDC).

AmCham Chairman Dan Silver told the audience that “Taiwan can be a leader across many, many fields and can achieve things that other economies and countries in the region cannot.” But he added that “action is needed” for these positive developments to occur.

Deputy Minister Kung accepted the White Paper on behalf of the Taiwan government.

Deputy Minister Kung accepted the White Paper on behalf of the Taiwan government.

Silver emphasized the government’s need for a more transparent regulatory process, calling attention to Taiwan’s Administrative Procedure Act (APA), a statute that governs the country’s regulation-making procedures. “We are calling on the administrative to look at the APA as an opportunity to step up engagement with the public at the Executive Yuan level,” he stated. Currently, Taiwan’s public-comment period is only seven days, which Silver argued does not allow ample time for feedback. In addition, government agencies normally do not respond to the public comments.

Extending the notification and comment period to 60 days, providing a single website as the platform for feedback to proposed regulations by all government agencies, and requiring the agencies to post their response would create a more transparent process and result in more effective and practical regulations, Silver said. APA reform would also “provide solid evidence of Taiwan’s seriousness about promoting its second-round candidacy for the Trans-Pacific Partnership,” he added.

APA reform would “provide solid evidence of Taiwan’s seriousness about promoting its second-round candidacy for the Trans-Pacific Partnership.” 

The chairman also highlighted the need for the government to ensure a stable energy supply as it tries both to phase out nuclear power and sharply decrease greenhouse gas emissions. In the White Paper, AmCham urges the government to present a detailed, data-driven and realistic plan for meeting future energy demand. Silver also discussed the need for labor regulations that suit the desire by knowledge workers to enjoy flexible working conditions that spur innovation and creativity. 

Chairman Dan Silver presented (?) the WP earlier that day at a press conference

Chairman Silver presented the advocacy document as a press conference earlier that day.

Looking back at the issues raised in the 2015 edition of the White Paper, Silver noted that six issues had been completely resolved, while another eight have shown significant progress. The resolved issues include two each from the Asset Management and Banking Committees, one from Sustainable Development, and one from Technology.

In remarks after accepting the 2016 White Paper, Deputy Minister Kung emphasized the crucial importance for Taiwan’s economic future of gaining membership in the second round of TPP. He also touched on the issues of attracting foreign talent and curbing domestic brain drain, suggesting possible stipends for Taiwanese students to matriculate abroad in exchange for commitments to return to work domestically after graduating.

“Within the first 100 days after Tsai’s inauguration, there is a real opportunity to articulate goals and point the economy in the right direction for improvement.”

He also underscored the new government’s desire to improve public communication and coordination among government agencies. He noted that under the Tsai Ing-wen administration, the NDC will play an even more important role, in that Cabinet ministers will attend Council meetings and develop a consensus on economic policies before they are submitted to the Executive Yuan for final approval.

As the new government has been in office only since May 20, the White Paper comes at an important transitional time for Taiwan. Silver noted that “within the first 100 days after Tsai’s inauguration, there is a real opportunity to articulate goals and point the economy in the right direction for improvement.”

The 2016 Taiwan White Paper can be found online at www.amcham.com.tw/advocacy/white-paper.