SMEs, innovation likely economic drivers: Tsai

By Chris Wang  /  Staff reporter

Small and medium-sized enterprises (SMEs) and innovation — not large corporations and capitalists — are what should drive Taiwan’s next-generation economy, Democratic Progressive Party (DPP) Chairperson Tsai Ing-wen (蔡英文) said in an interview published online yesterday, warning that the nation’s economic development can not afford to favor the rich and the powerful anymore.

In an interview with the Chinese-language Common Wealth magazine that touched upon the issues of the proposed free economic pilot zones and free trade, Tsai highlighted the urgency for Taiwan to develop a new economic model for prosperity and President Ma Ying-jeou’s (馬英九) administration’s fallacious economic policy scheme.

DPP’s Tsai advocates five-point plan to aid economy

By Chris Wang  /  Staff reporter

Taiwan should change its economic priority from achieving maximum growth to providing maximum well-being to its citizens, while adopting new, creative ideas to tackle the unprecedented challenges brought on by globalization and the rise of China, former Democratic Progressive Party chairperson Tsai Ing-wen (蔡英文) said yesterday.

“The goal [of maximum well-being] cannot be achieved without creating more job opportunities, raising wages, striking a balance between exports and the domestic consumption, and avoiding overdependence on one market,” she said as she delivered the keynote speech at a forum organized by the Taiwan Venture Capital Association.

Quickly ratify service pact, former KMT officials urge

‘SECOND CUBA’:：Former SEF chairman Chiang Pin-kung said the nation could lose ground to South Korea as it pursues an FTA with China, risking economic isolation
By Chris Wang  /  Staff reporter
Mon, Oct 28, 2013 - Page 3

Taiwan will have to speed up the ratification process of the cross-strait service trade agreement and negotiations for a trade in goods pact with Beijing in the wake of aggressive talks between South Korea and China for a free-trade agreement (FTA), former government officials from the Chinese Nationalist Party (KMT) administration said yesterday.

“South Korea would be ecstatic to see a prolonged stall of the service trade pact in the Legislative Yuan and a signing of the South Korea-China FTA before the cross-strait trade liberalization is completed,” former Strait Exchange Foundation (SEF) chairman Chiang Pin-kung (江丙坤) told a press conference.

Tsai outlines ‘third stage’ of community development

By Chris Wang  /  Staff reporter

Former Democratic Progressive Party (DPP) chairperson Tsai Ing-wen (蔡英文) yesterday advocated what she described as “the third stage of community development.”

“Especially now, the third stage of community development is important to Taiwan because the current state apparatus is no longer capable of resolving problems such as the wealth gap, democratic disorder and government malfunction,” Tsai told a civic forum on community development.

Jiang confirms FEZ plan, formal announcement today

PILOT PROGRAM:The premier said the zones would be the ‘first major economic task’ of his administration and would liberalize trade and upgrade industrial structure
By Chris Wang  /  Staff reporter

Premier Jiang Yi-huah (江宜樺) yesterday confirmed that a two-phase free economic zones (FEZ) plan, which aims to liberalize the nation’s international trade activity and promote industrial upgrades, would be announced today — with pilot zones established in northern, central and southern Taiwan in the first phase.

Chinese agricultural products would be allowed to be imported and processed in the zones before being shipped out labeled as “Made-in-Taiwan” products, but these products would not be sold in Taiwan, nor would the ban on 830 Chinese agricultural products be lifted, Jiang told a plenary session of the legislature.

2012 ELECTIONS: Tsai addresses business leaders’ doubts

MISUNDERSTANDING:The DPP presidential candidate said the party was not against the petrochemical industry, but that it didn’t agree with the Kuokuang plant’s location
By Chris Wang  /  Staff Reporter

DPP presidential candidate Tsai Ing-wen (蔡英文) yesterday told Taiwanese business groups that a new Democratic Progressive Party (DPP) administration would pursue further trade liberalization by adjusting Taiwan’s economic structure and seeking a cross-strait policy with an emphasis on stability if she were elected in January.

Her administration would play an active role in balancing economic development, environmental protection and labor rights without sacrificing the interests of employers and workers in a “rebalancing” global economy, Tsai told business leaders at a forum in Taipei.

Forum discusses ECFA, Taiwan's priorities for economic integration

Taipei, Sept. 3 (CNA) Taiwan is focusing on Asian regional economic integration after its historic trade agreement with China, panelists in a forum agreed Friday, but they had different opinions on Taiwan's priorities in the process.

Taiwan is able to leverage on the economic cooperation framework agreement (ECFA), which was signed in June to liberalize cross-Taiwan Strait trade ties with its largest trade partner, and prevent the country from being marginalized in Asia's economic integration, said Francis Liang, deputy minister of the Ministry of Economic Affairs.

"This is the first step, but we know that it is not enough, " he said at a forum co-organized by the ministry and the Chinese National Federation of Industries (CNFI) with a theme of Taiwan's role in regional economic integration.

Taiwan is hoping that it will be able to sign free trade agreements (FTAs) with other trade partners after it liberalizes trade relations with China. It received a boost of confidence when Singapore announced last month that it would study the feasibility of signing a trade pact with Taiwan.

Southeast Asia should be the first region Taiwan sets its sights on after the ECFA, said Yang Yung-ming, a professor at National Taiwan University and former consultant of the National Security Council, adding that Taiwan should seek to strengthen its relations with countries in the Association of Southeast Asian Nations (ASEAN).

The ASEAN is Taiwan's fifth-largest trading partner after China, the United States, Japan and the European Union (EU).

With stalls in the WTO's Doha talks, which tried to establish a multilateral free-trade mechanism, countries have been looking to establish a free trade system bilaterally and regionally, Yang said.

The Free Trade Area of Asia Pacific (FTAAP) and the East Asia Summit, a forum held annually by leaders of 16 countries in the East Asian region, are not likely to be the solution because there are too many differences between member states in terms of political systems, religions and the size of their economies, he said.

Despite a Chung-hua Institution for Economic Research study concluding that a Taiwan-Japan FTA would benefit Taiwan the most, a lot of factors will have to be taken into account in FTA negotiations, including social factors, political situations and the impact on local industries, Yang said.

That appears to make the ASEAN market a realistic goal for Taiwan as the next target of regional economic integration, he added.

Yang's remarks reflected a similar mentality to Taiwan's government, which has stated that Southeastern Asian countries will be at the top of its FTA-seeking agenda.

Many local businesspeople, however, still view the U.S. and the EU as the preferred targets in the "FTA drive" because of the large trade volumes, said Rock Hsu, CNFI vice chairman and chairman of Kinpo Group, one of the largest electronics groups in Taiwan. Most Chinese products end up selling to the American and European markets, he noted.

Hsu also urged the government to lay out a vision and long-term plans so local industries will have a clearer view of the future.

"Do we want to be a 'Free Trade Island' in the future? If the answer is yes, what preparation should we be doing to achieve that goal?" he said.

Panelists in the forum praised the ECFA, with Leslie Koo, chairman of Taiwan Cement Co., saying that the deal "has helped Taiwan to regain its economic vitality and momentum and has opened a window of opportunity for a prosperous future."

"We have to grab the opportunity because it will be gone in three to five years," Koo said. (By Chris Wang) enditem/bc

Economists examine Ma's economy policy at mid-term

Taipei, May 14 (CNA) Economists on Friday examined President Ma Ying-jeou's economic policies at the halfway mark of his term and expressed hopes for a better performance in the next two years that will pull Taiwan's economy back on track.

Ma had to deal with an unexpected and difficult challenge -- the global financial crisis -- in his first year in office and has had his ups and downs along the way, but Taiwan's economy has shown signs of recovery since the second half of 2009, experts agreed at the seminar organized by the Taiwan Competitiveness Forum.

"That shows you Ma must have been doing something right, " said Lai Shyh-bao, a lawmaker whose expertise is in management and economics.

The International Monetary Fund has forecast Taiwan's gross domestic product (GDP) growth rate in 2010 at 6.5 percent while Global Insight has put it at 5 percent, both of which would be good enough to outperform Asian rivals South Korea, Hong Kong and Singapore, he said.

Concerns remain, however, especially over a recovery that has not created many jobs or increased stagnant wages, Lai said.

He suggested that the administration pay more attention to labor-intensive rather than high-tech sectors and be aware of the rapidly widening wealth gap that could possibly lead to social problems and instability.

Hong Chi-chang, a former legislator and former chairman of the Straits Exchange Foundation (SEF) , Taiwan's quasi-official organization that deals with cross-strait matters, concurred.

"Taiwan is experiencing growth that cannot be felt by the general public and a recovery without employment opportunities," he said.

Bert Lim, president of the World Economics Society, a policy study think tank, warned the administration it would be making a mistake if it intends to boost the economy through private investment and private consumption, because private spending and investment have been shrinking for more than a decade.

But the necessary public investment may not be forthcoming because Taiwan's economic policy has progressively moved toward "left-wing socialism, " Lim argued, citing the country's shifting budget priorities.

During former President Lee Teng-hui's time in office in the 1990s, over 40 percent of the government budget was devoted to the economy while 11.6-13 percent was spent on social welfare.

But under former President Chen Shui-bian from 2000-2008, government spending on the economy ranged from 9-15 percent while social spending grew to 36-42 percent, said Lim.

Ma is following Chen's policy rather than emphasizing free trade initiatives and aggressive entrepreneurism -- two characteristics that made Taiwan's economy blossom in the 1970s -- Lim contended.

Citing the example of former U.S. President Ronald Reagan, whose economic policy led the U.S. to a "glorious" 1980s, Lim encouraged Ma to move toward further deregulation to stimulate economic activity again.

Day Jaw-yang, a researcher at the Taiwan Research Institute, warned that the proposed economic cooperation framework agreement (ECFA) should be a tool, rather than an objective, for Taiwanese businesses to take advantage of China's resources in their global development.

The Ma administration hopes to sign the pact with China in June as a first step toward normalizing trade across the Taiwan Strait.

"How President Ma handles domestic matters in the 'post-ECFA' era will be crucial in the second half of his presidency," Day said. (By Chris Wang) enditem/ls

Economy high on President Ma's midterm agenda

Taipei, May 14 (CNA) President Ma Ying-jeou said Friday in a midterm assessment of his presidency that his efforts to reduce tensions across the Taiwan Strait have paid off and that improved Taiwan-China ties will lead to a better economic future for Taiwan.

If Taiwan can sign an economic cooperation framework agreement (ECFA) with China to relax cross-strait trade regulations and reduce tariffs, and complete an industry upgrade to build an innovation-based economy, a "Golden Decade" of sustained development would be a realistic goal, he said.

He reiterated his goal of sealing the deal with China before July and said he will head a special task force to seek free trade agreements (FTAs) with major economies, especially the European Union (EU), Japan and the U.S., after the ECFA is completed.

Ma said he believes China understands the fact that Taiwan is entitled to sign FTAs with other World Trade Organization (WTO) members and would not interfere in Taiwan's attempts to do so.

The ruling Kuomintang's (KMT's) policy toward China is a part of its carefully thought out global strategy, said the president, who is also chairman of the KMT, in an interview with the Central News Agency in the run up to the May 20 midpoint of his current 4-year term.

"China is an integral part of our internationalization and globalization strategy, " but it was not part of the opposition Democratic Progressive Party's (DPP's) global vision, said Ma, who has adopted an "economy first, politics second" approach in dealing with China.

"We should cherish the fact that the two sides (the KMT and the Chinese Communist Party) , which have fought each other for decades, are finally able to work on building mutual trust, " the president said.

However, Ma said, the time is not ripe for him to meet with Chinese President Hu Jintao as "neither side sees any urgency for this." Furthermore, Taiwan has no plans to engage in political and military talks with China at this time, he said.

On the issue of the continued military threat from China, the president said it is an "uncomfortable picture" for him to see on one hand reduced cross-strait tensions and improved economic relations, and on the other hand, more than 1,000 Chinese missiles aimed at Taiwan.

China will face increased pressure from the international community if it does not remove the missiles, especially after the ECFA is signed, he said.

Meanwhile, Ma promised, Taiwan will not engage in an arms race with China, but will still pursue U.S. weapons procurement in order to maintain its defense capability and its confidence when dealing with China.

The U.S. is reviewing Taiwan's request to purchase submarines and F-16 C/D fighters, and consultations are in progress on a new arms procurement list that will be based on an innovative and asymmetric strategy, he added.

A strong national defense capability and economic security will give Taiwan the confidence to stride forward and to make up for "the lost eight years" of the previous administration, he said.

He pledged that the economy will be high on the agenda for the remainder of his current term, with job creation as the top priority.

He noted that the Directorate-General of Budget, Accounting and Statistics has upgraded its forecast for the growth of Taiwan's 2010 gross domestic product (GDP) , from 3.39 percent to 4.72. The International Monetary Fund has also raised its forecast for Taiwan's GDP growth rate to 6.5 percent, he added.

Furthermore, the forecasts by most foreign institutions are higher than domestic estimates, which is an indication that "foreigners are even more optimistic about Taiwan's economy than we are," the president said.

As part of its economic goals, the government will recruit more economic and financial experts to the Cabinet in the impending reshuffle to help Taiwan achieve "its new place on the Asian economic map," he said.

Regarding government reform, Ma said that he has no intentions to amend the Constitution during his term because the executive and legislative branches are both functioning well.

He described his working relationship with Premier Wu Den-yih as "seamless, " which he said means that "the dual executive system is functioning well." (By Chris Wang) enditem /pc

Taiwan workers march on Labor Day

Taipei, May 1 (CNA) Thousands of Taiwanese workers urged the government Saturday to ban dispatch hiring and include protection of labor rights in the negotiations on a proposed cross-Taiwan Strait trade pact.

In a Lobor Day rally in front of the Executive Yuan, the workers also called for the government to stop interfering with the unions and to guarantee pensions for the country's entire workforce.

The rally will be only the first wave of a continued effort until working conditions are improved and related laws are revised and amended, said Hsieh Chuang-chih, secretary-general of the Taiwan Confederation of Trade Unions.

Crowds chanted slogans of "anti-poverty" and "down with Wang Juh-suan, " (minister of the Council of Labor Affairs) " during the three-hour protest, voicing their discontent over what they see as government incompetence that has caused shrinking job opportunities and salaries.

"It is the management, rather than the workers, who have enjoyed the vast majority of the benefits of globalization and trade liberalization, " according to Hsieh.

Private businesses and government agencies have also increased their dispatch hiring over the past few years, making it more difficult for local workers to land permanent jobs.

Premier Wu Den-yih, who was in Taichung and did not address the crowds personally, told reporters that the labor rights problem in Taiwan is a long-standing issue that first occurred during the previous administration, in which temporary jobs and numbers of foreign workers increased dramatically.

Leaders of the rally denounced the Council of Labor Affairs' (CLA's) response to their appeals issued on the eve of the protest, as "irrelevant." The CLA stated that a flexible mechanism of hiring has been a global trend since the 1990s and that termination of such hiring would jeopardize a large number of jobs. According to the CLA, there were approximately 516,000 temporary workers in Taiwan as of May 2009.

Approximately 1.3 million workers in Taiwan, including 600,000 temporary workers and 700,000 workers with less than 35 working hours per week -- more than 10 percent of Taiwan's workforce -- are working on a temporary basis with no hope of a pension or hope of landing a permanent job, Hsieh said.

According to statistics, the total workforce was 10.63 million as of March, while unemployment reached 5.67 percent, down from the historic high of 6.13 percent last August.

"We oppose the planned legalization of temporary hiring in the Labor Standards Act. We also express our regret and anger over the government's favoring of management and large corporations over the workers, " said Lo Tsai-feng, a representative of Young Fast Optoelectronics Trade Union.

In addition to unions from private businesses, their counterparts from government agencies such as Taipei City's Department of Environmental Protection and Parking Management and Development Office, also participated in the rally because most of their jobs have also been outsourced. (By Chris Wang) ENDITEM/J

ECFA could marginalize US in East Asia: DPP chair

Taipei, April 29 (CNA) The U.S. presence in East Asia could be compromised as China is expected to emerge as the region's leader if a cross-Taiwan Strait trade pact forces South Korea and Japan to seek closer economic ties with China, Taiwan's main opposition party leader said Thursday.

At a 60-minute press conference, Democratic Progressive Party (DPP) Chairperson Tsai Ing-wen addressed dozens of international media members on various political matters, most notably her debate with President Ma Ying-jeou last Sunday on the proposed economic cooperation framework agreement (ECFA).

Ma said the agreement, which he intends to sign before June, would ease cross-strait tension and benefit Taiwan's economy.

Tsai said the pact would pressure regional powers such as South Korea and Japan to actively seek free trade agreements (FTAs) with China and eventually shift the power balance in the region.

"China will be the center of this region and the U.S. will be marginalized," she said.

"We don't have a problem with China leading the region -- if it's a democracy and a market economy, " she added.

Tsai said that her party, which has been widely seen as adopting a "zero-sum" strategy in managing it's cross-strait relations, will pursue a "more stable, consistent and predictable (China) policy." The DPP will use its experience ruling the country from 2000 to 2008 to draw up "10-year policy guidelines" that will improve its ability to manage relations with China as well as the U.S. and Japan, Tsai said.

According to the pro-independence DPP, the guidelines will be unveiled in August and offer flexible strategies for resolving problems facing Taiwan.

In terms of the ECFA, "it's not as urgent as President Ma said and the benefit is not as much as the government claimed," Tsai said.

The ECFA is not necessary to ease cross-strait tensions, Tsai said, adding that cross-strait relations have been relatively stable due to extensive trade activity. The real tensions Taiwan needs to address are domestic economic and social matters, she said.

Tsai said that the World Trade Organization (WTO) would provide enough room, protection and mechanisms for Taiwan to boost its economy and deal with countries all over the world. "There's no need to go beyond the WTO," she said.

While Ma contended that Taiwan will be able to secure FTAs with other countries after signing the ECFA, Tsai added, it will set a bad example and appear that Taiwan needs China's consent before engaging in activities with the international community.

At the same time, trade volume between Taiwan and China is expected to increase after the pact is signed and could cause reduction of trade with other countries, compromising the incentive for them to sign FTAs with Taiwan, she said.

Responding to a question, Tsai said that if the deal is signed and the DPP returns to power in 2012, it could terminate the agreement or adjust its content after receiving public consent through either referendum or legislative discussions.

Tsai said that one of her biggest domestic concerns is the widening wealth gap. Citing a poll, she said that only one-third of Taiwan people stand to benefit from globalization, while two-thirds fail to gain -- or even suffer -- from trade liberalization.

The DPP supports a referendum proposal submitted by a minor opposition party, the Taiwan Solidarity Union (TSU), that calls for a vote on the ECFA. Tsai said it would give people "an opportunity to make decisions" on major policy issues.

The DPP is still assessing the impact of the referendum on five year-end special municipality elections, she said. (By Chris Wang) enditem/bc

ECFA will intensify left-right social issue: scholar

Taipei, Jan. 18 (CNA) The proposed trade pact between Taiwan and China will only benefit certain people and corporates and intensify a left-right economic spectrum, a scholar told the Central News Agency in an interview.

The pact, known as Economic Cooperation Framework Agreement (ECFA) , "is not an independence-unification issue but a left-right economic social issue with a core concern of wealth re-distribution, " said Lo Chih-cheng, a political scientist at Soochow University.

"A predicted gross domestic product (GDP) growth after the agreement takes effect may be impressive and appealing on the surface. However, do all those numbers and indexes announced by the government reflect people's concerns?" Lo asked.

The ECFA, which Taiwan government intends to sign with China to relax trade and financial regulations in the first half of 2010, is expected to increase Taiwan's GDP by 1.72 percent, Bureau of Foreign Trade Director-General Huang Chih-peng said in October, 2009.

Lo said that the ECFA, in essence a free trade agreement, will only benefit certain sectors and large corporates while damaging the small and medium-sized businesses (SMEs) , the backbone of Taiwan's economy, and the working class.

"Let's say a large corporate secures a NT$10 billion profit and the SMEs lose NT$90 millions because of the cross-Taiwan Strait agreement. On paper, Taiwan economy grows, but those NT$90 millions are 'survival money' for those SMEs and thousands of families behind them, " he said.

The controversial agreement reflects a fact and a concern that, while large corporates are capable of lobbying and influencing the government policies, SMEs and ordinary people are left out in the cold when "the rich gets richer and the poor get poorer", Lo said.

And that's why Lo thinks it's a left-right issue rather than a ruling Kuomintang (KMT) vs. the opposition Democratic Progressive Party (DPP) issue or an independence-unification issue.

"It's all about choice-making. A government is obliged to pursue the interests for the majority of people, " he added.

Lo saw some contradictory facts and mistakes in Taiwan's negotiations process. While the Taiwan government pointed out that the agreement is more of a framework with actual contents waiting to be made in the future and the DPP opposed for the sake of opposition, he said, it announced concrete GDP growth prediction at the same time.

And Taiwan has said on several occasions that it is eager to complete the deal in the first half of 2010, which is against the basic rule of negotiations, he said.

"When you set a timetable before the negotiations, you tie your own hands at the back and put yourself in a disadvantage, " he said.

He said that Taiwan government also needs to thoroughly explain different negotiations scenarios to the public and let people know what sacrifice they might have to make in order to secure the benefits.

The government said Taiwan is in danger of being marginalized and hollowed out after the ASEAN-China (Association of South East Asian Nations-China) free trade arrangement went into effect because Taiwan-made product will be imposed with higher tariffs in the integrated region.

Lo denounced the argument, saying that Taiwan's biggest trade competitor is South Korea, not ASEAN countries and the government "intentionally magnify the impact of the ASEAN-China free trade agreement." On the contrary, not only Taiwan-made products will not enjoy easier access to the ASEAN but more local businesses will relocate to China, he said.

An ECFA can neither solve Taiwan's unemployment and capital outflow nor attract Taiwanese businessmen to re-invest in Taiwan, he said, unless Taiwan is equipped with fine-tuned policy on labor, industrial parks, environment protection and tax incentives.

It is wrong to place the agreement with China as the priority of Taiwan's national development strategy. Taiwan needs to have an alternative plan, which means industry upgrade and establish pioneering sectors, Lo said.

"There's not one country I know of that formulates its national policy on outbound investment. What Taiwan needs to do is to attract foreign directive investment and create jobs, " Lo said.

It's the government's responsibility to identify what those sectors are and play a major role in fostering their development, he said.

"Businessmen will always go for profit and short-term goals, and there's nothing wrong with that. But a government has to look at this in a long-term perspective, " Lo said.

There's always a possibility that China is engaged in the negotiations for more than economic benefits, Lo noted, saying that China will still eye on an eventual goal of political gain.

International symposium discusses `glocalization' developments

Taipei, Oct. 11 (CNA) If Taiwan is serious about connecting with the international community, it needs to pay attention to education, the media and the general mentality, foreign representatives said in an international symposium Thursday.

Representatives from Japan, Singapore and South Korea and foreign representatives stationed in Taiwan participated in the two-day symposium organized by the Research, Development and Evaluation Commission (RDEC) of the Executive Yuan to discuss "glocalization, " an invented term used to describe the tempering effects of local conditions on global pressures.

As globalization integrates economies and societies around the world, the process has been affected by each country with its own special character, said RDEC Minister Shih Nun-jeh.

Because of this, the government and people should "think internationally, act both internationally and locally" and create an English-friendly environment, Shih added.

Richard Vuylsteke, Executive Director of the American Chamber of Commerce, encouraged Taiwan to welcome immigrants rather than marginalize them. Taiwan's traditional teaching methods should be revised and the media should stop focusing on Taiwan alone, Vuylsteke also suggested in his presentation.

Singapore's approach to glocalization can be summed up with a simple "three pro's" -- pro-growth, pro-talent and pro-harmony -- said Raymond Tan, International Manpower Division Assistant Director of Singapore's Ministry of Manpower.

The keys are to create an investment-friendly environment, attract international talent and maintain cultural diversity and social harmony, Tan explained.

Promoting multiculturalism, which enhances "connectedness, " is essential in the development of glocalization as well as public education, because resistance to immigrants and other cultures can be expected, said Ron McIntyre, executive director of the Canadian Trade Office in Taipei.

Conference on multilateral environmental, trading systems held

Taipei, Aug. 22 (CNA) Taiwan, like other World Trade Organization (WTO) members, should understand how to take advantage of appropriate regulations under the WTO framework in the event of trade disputes relating to environmental issues, a Japanese academic said in an international conference held in Taipei Wednesday.

There will always be trade disputes relating to food safety and environmental issues and there is limit to what the dispute settlement procedure can do, Mitsuo Matsushita, a law professor at Japan's Seikei University and a former member of the WTO's Appellate Body, said in the conference titled "Global Governance of Multilateral Environmental and Trading Systems."

There have been over 200 multilateral environmental agreements signed all over the world, including the Kyoto Protocol, aimed at protecting the environment. Some of them use a quota system, such as the International Convention for the Conservation of Atlantic Tuna, while others are supposed to resolve the problems within a trading system, such as the Kyoto Protocol and the Basel Convention, Matsushita said.

However, disputes continue to happen, he went on, citing the latest dispute between Brazil and the European Commission over retreaded tires.

Potential conflicts between Kyoto Protocol, Cartagena Protocol (which regulates biosafety) and WTO rules are possible, which is why countries are encouraged to work out different ways to resolve the problems, Matsushita said.

"Global governance is needed to solve disputes such as terrorism and trade issues because we can't do it unilaterally, " Economic Vice Minister Hsieh Fadah said, adding that regional, transnational and international networks are needed to deal with environmental issues.

Any trade restriction implementation has to consider the factors of economical gains, social welfare and environmental impact, Hsieh noted.

The two-day conference was organized by the Chunghua Institution for Economic Research and invited scholars from Japan, South Korea, the U.S. and the WTO to participate.

CONFERENCE ON CULTURE DIVERSITY HELD

Taipei, June 28 (CNA) Academics from more than 10 countries are taking part in a two-day international conference on culture diversity under international trade regimes that started Thursday to discuss conflicts and difficulties between preserving cultural diversity and trade practices.

Taiwan is "rich in cultural diversity as it has been ruled by Spanish and Dutch" and is currently facing the challenge of globalization at a time when it is working hard toward developing a cultural creative industry, said Minister of Council of Cultural Affairs (CCA) Wong Chin-chu in her opening remarks.

On Oct. 20, 2005, the UNESCO General Assembly adopted the Convention on the Protection and Promotion of the Diversity of Cultural Expression (CCD), which became effective March 18 this year. Taiwan has been paying great attention to the convention although it is not a U.N. member, Wong said.

The debate between preserving cultural diversity and international trade practices has been going on in Geneva, where the World Trade Organization (WTO) headquarters are located, said Deng Chen-chung, chief negotiator of Taiwan's Office of Trade Negotiations who was based in Geneva in his previous job.

In most countries, trade and cultural officials do not talk to each other often, Deng said, adding that even in Geneva, representatives from different countries know very little about the UNESCO convention.

"Currently, the WTO is not equipped to handle this issue, " he said, urging a mechanism between the WTO and UNESCO and clearer rules of the convention to be set up.

A total of 16 theses will be presented at the conference, and new rules to address cultural policy issues within the WTO framework in future trade negotiations will be explored. The participants are from New Zealand, Canada, India, Israel, Germany, South Korea, Hong Kong, France, the U.K., the U.S. and Taiwan.

FRENCH OFFICIAL: PRESERVING DIVERSITY SHOULD BE TAIWAN'S PRIORITY

Taipei, March 3 (CNA) Facing the challenges of globalization, preserving cultural diversity should be Taiwan's priority, a French official said in a conference Saturday.

At the same time, contrary to what most people think, France is not resisting globalization, according to Jean-Claude Poimboeuf, director of the French Institute in Taipei, in the conference titled "Globalization: How Do the French Do It?"

"The uniqueness and the richness of Taiwan is precisely its cultural diversity, " Poimboeuf said. He pointed out that Taiwan is a mix of Chinese and Japanese heritage, the cultural influence of the U.S. and local cultures, including Hoklo, Hakka and indigenous cultures, adding that France has likewise absorbed influences from other European countries.

Cultural diversity is what makes Taiwan unique in Asia and why Taiwan should preserve it. "You are the result of this unique combination," he said.

On how French deal with globalization, Poimboeuf admitted that France is sometimes perceived as a country that fears globalization and is seen by many as unable or unwilling to adapt to change as a declining power. This "oversimplified view" is far from the actual France, he said.

"France is aware that it is a major actor and beneficiary of globalization... and has also its own strong view on how globalization impacts the planet, " he said.

To meet the challenge of globalization, France places emphasis on its education, he said. The French education system asks students to learn at least two foreign languages to prepare for the world and puts strong emphasis on science, engineering and technology.

Spreading the use of the Internet is also one of the keys, he added.

The conference was part of the Taipei Salon, organized by the Lung Ying-tai Foundation.

FBI PROGRAM AN EXAMPLE FOR TAIWAN TO FIGHT CYBER CRIME

Taipei, Nov. 28 (CNA) A U.S. FBI program combining the efforts of government agencies, academia and the private sector can be an example for Taiwan in fighting cyber crime, representatives from law enforcement agencies said Tuesday.

Representatives in Taipei and Kaohsiung attended an 80-minute digital video conference in which FBI Cyber Division Deputy Assistant Director Raul Rolden discussed cyber crime issues with panelists from the two cities.

Rolden found out after his brief on cyber crime basics that his audience were most interested in the "InfraGard" program, which Taiwan badly needs, according to the attendees.

InfraGard, which began in 1996, is a partnership between the FBI, the private sector, academic institutions, and state and local law enforcement agencies, Rolden said.

It is an information sharing system and analysis effort serving the interests and combining the knowledge base of a wide range of members, he said. InfraGard currently has more than 15,000 members.

Rolden said InfraGard can be described as an FBI outsourcing program that "lets companies bring in the information, analyze it...and identify the crime" because the expertise in the private sector is far more advanced than that of the FBI.

The FBI Fusion Center, which is located in Pittsburgh, Pennsylvania, is able to tackle cyber crime with the help of the program and has received relative success, Rolden said.

Cyber criminals are very creative and can even be called "innovators, " Rolden noted.

The conference, titled "Emerging Cyber Crime Trends and Enforcement Approaches, " was hosted by the American Institute in Taiwan.

TAIWAN CAN PLAY IMPORTANT ROLE IN WAR ON TERROR: OFFICIAL

Taipei, Nov. 25 (CNA) While international terrorism is not an issue on the minds of most of Taiwan's people, Taiwan can play an important role in the "global war on terrorism, " an official said Saturday.

"Taiwan should never underestimate itself, because it can play an important role in the global war on terror, " said Kuo Lin-wu, director of Executive Yuan's Counter Terrorism Office, in a seminar on international terrorism.

Taiwan has thousands of active and competitive small and medium-sized enterprises (SMEs) , Kuo said. This fact, coupled with the country's top machinery manufacturing and regional distribution capabilities in the Asia Pacific region, means that Taiwan could easily be exploited by terrorists, he said.

This is why Taiwan can play a big part in the war on terrorism and in preventing the proliferation of weapons of mass destruction, he noted.

And Taiwan should find its place in the global campaign because, contrary to what most Taiwan people think, Taiwan's national security is already threatened by international terrorism, which is spreading through the "globalized network, " Kuo added.

At the same time, Taiwan can learn a lot from taking part in the anti-terrorism campaign. As countries all over the world strengthen their crisis management mechanisms, Taiwan will be able to learn from others' experiences, Kuo said.

Taiwan can even explore new business opportunities in the anti-terrorism process, he said.

"Taiwan will have opportunities to leverage its technology competitiveness and get involved in various homeland security-related industries, " Kuo said.

GLOBAL E-COMMERCE TRUSTMARK ALLIANCE IN THE MAKING

Taipei, Nov. 8 (CNA) Participants from 15 countries and regions walked away from an international meeting in Taipei Wednesday confident of establishing a global e-commerce trustmark alliance in the future.

The initiative that seeks to establish a global online consumer protection network -- "Trustmark Alliance" (TA) -- gathered 30 self-regulatory organizations in the one-day meeting, which was co-sponsored by Asia Trustmark Alliance (ATA) and Taiwan-based Secure Online Shopping Association (SOSA).

To win the confidence of online consumers, the meeting concluded that merchants and organizations need to establish a trustmark or label, an alternative dispute resolution, a privacy protection mechanism and an international collaboration to ensure cross-border online transaction safety.

Governments and law-enforcement agencies should also play important roles in resolving online transaction disputes, meeting participants said.

Participating organizations came from Asia, Europe and America. Among them were BBB Online from the U.S., ECNetwork from Japan, the Korea Institute for Electronic Commerce, TrustSG from Singapore, Certifida from Switzerland, and representatives from Thailand, Germany, and the European Commission.

TAIPEI TO HOST INTERNATIONAL FORUM ON E-COMMERCE

Taipei, Nov. 7 (CNA) For the first time, an international forum on e-commerce will be held in Taipei that will have a stake in determining the future direction of global e-commerce develepment, organizers said Tuesday.

The Global Business Dialogue on e-commerce (GBDe) will be a two-day forum Nov. 9-10 and attended by over 200 e-commerce business leaders, company representatives and government officials from around the world.

"The new age of global e-commerce has arrived and e-commerce will be integrated very soon into our daily activities. And if Taiwan works hard enough in the field, it will be able to play an important role in Asian and global e-commerce, " said GDBe overall chair Ho Chen-tan, who serves as president and CEO of Chunghwa Telecom, the event's main organizer.

Topics to be discussed include the rise of ubiquitous network security, cyber-security threats and countermeasures, the impact of next generation networks, creating a cross-border market, winning the confidence of consumers and the rise of mega media digital content.

Chunghwa Telecom, a key member in the GBDe working group on international micro-payment, demonstrated how it has successfully worked with partners in China and South Korea to develop a cross-border platform and micro-payment measures allowing users to view and download digital content, such as movies, music and animation.

"With secured online verification, consumers can access the payment system by mobile phones, fixed line phones or the Internet, " Ho said.

Technological development and global integration and cooperation will one day make e-commerce truly borderless, Ho said, adding that the mechanism of micro-payment will benefit non-credit card holders such as teenagers.