April 24, 2015
No. 071
The Taiwan-Singapore economic partnership agreement (ASTEP), which took effect one year ago, has produced notable trade and investment benefits for both countries. According to customs statistics of the Republic of China, trade between the two countries between May 2014 and January 2015 registered a year-on-year increase of 5 percent to US$22 billion. Taiwan’s exports to Singapore grew 9 percent to US$15.8 billion. Meanwhile, statistics from the Ministry of Economic Affairs showed that Singapore invested US$406 million in Taiwan between May 2014 and February 2015, up by US$188 million year on year. During the same period, Taiwan’s corporate investment in Singapore increased US$44 million to US$131 million. At the first review of the agreement on April 13, economic and trade officials from both Taiwan and Singapore expressed satisfaction with achievements seen so far.
Singapore is a trade and investment center of the Association of Southeast Asian Nations (ASEAN), while the ASEAN Economic Community is expected to be formed by the end of this year. Taiwan and Singapore could build on their economic partnership agreement and explore the possibility of joint cooperation and development of the extensive market formed by the ever-increasing integration of ASEAN nations, as well as other markets.
To promote external trade and investment, enhance national competitiveness, advance economic growth, create job opportunities, and avoid economic marginalization, the Republic of China government has made concerted efforts to take part in regional economic integration arrangements such as the Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership. It has shown the rest of the world its determination to open up its economy and honor pledges to its trade partners by taking concrete action, which will be key to garnering international support.
ASTEP is a high-quality economic pact that covers a wide range of areas and ensures a high degree of economic liberalization. Under this agreement, Taiwan will remove tariffs on 99.48 percent of imports from Singapore while Singapore will reciprocate with 100 percent. In the one year since ASTEP took effect, Taiwan has demonstrated resolve to liberalize its economy and has achieved concrete success, creating conditions conducive to its effort to integrate with the regional economy. The ROC Ministry of Foreign Affairs will continue to work with other ministries to promote this endeavor.
ASTEP was signed on November 7, 2013, by Taiwan Representative to Singapore Fadah Hsieh and Singaporean Trade Representative to Taiwan Calvin Eu Mun Hoo. The pact entered into force on April 19, 2014.