Tough times ahead for Taiwan’s exports, especially after South Korea’s trade deal with China kicks in, analysts say.
Channel News Asia
Date: 08 Jul 2015
By: Victoria Jen, Channel NewsAsia’s Taiwan Correspondent
TAIPEI: Competition from China’s domestic suppliers is squeezing Taiwan’s exporters
A general view shows cargo containers at Taiwan’s northern Taipei Port which lies south of the Tamshui River, in the Bali district of New Taipei City. TAIPEI
and officials fear things could get worse once the Sino-Korea FTA kicks in.
“In the first year, as much as US$17 million of Taiwan’s exports to China are estimated to be replaced by those of South Korea. In the 20th year, it is US$6 billion,” said David Hsu, Bureau of Foreign Trade Deputy Director.
Over two decades, tariffs on 90 per cent of the goods traded between China and South Korea will eventually be eliminated.
Many of those goods are exactly what Taiwan supplies to China, so Taiwanese automobiles, electronics and machinery could be hit hard.
Huge protests last year saw Taiwan’s own trade deal with China stalled. [FULL STORY]