Date: March 18, 2016
Taiwan exporters of products included in the World Trade Organization’s expanded
Information Technology Agreement can expect to save US$820 million per year once the pact takes effect July 1.
The ITA includes 136 products in which Taiwan enjoys market advantages. These are components for display devices and mobile phones, GPS navigation equipment, integrated circuits, memories, polarizers and set-top boxes, among others, according to the Office of Trade Negotiations under the ROC Ministry of Economic Affairs March 18.
Under the agreement, 73 percent of such local exports will gain duty-free access to 10 key markets this year, with tariffs on another 19 percent abolished by 2019. As Taiwan’s annual exports and imports of covered products are estimated at US$90 billion and US$62.7 billion, respectively, net savings in tariffs can reach US$820 million a year.
Display components are one of Taiwan’s most profitable exports. A total of 75 percent of shipments are sent to mainland China at rates of 6 percent to 8.4 percent, all of which will be eliminated in three years. [FULL STORY]