Taiwan lowers tariffs on 15 imported foods

台灣降低15種進口食品的關稅

The tariff amendments favor mostly Japanese products and have been made in a bid to join CPTPP negotiations


TIAPEI (Taiwan News) — The Legislative Yuan on Wednesday (July 3) passed amendments to lower tariffs on 15 imported food products in order to gain leverage and enter negotiations for a transnational trade pact.

Taiwan has previously expressed interest in joining second-round negotiations of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which came into force in December last year. The trade agreement is led by Japan after the U.S. withdrew from the original Trans-Pacific Partnership (TPP) in 2017.

The amendments, which will take effect three days after the president signs them into law, are considered a gesture of goodwill extended to the Japan government, reported Central News Agency. The reduction in tariffs covers Chinese yam, miso, and satsuma mandarins, among other products mainly imported from Japan.

In particular, the tariff for alcohol made from cereal grains will decrease from 40 to 20 percent, favoring the import of Japanese sake.

The 15 imported products also include seafood and processed foods, whose tariffs will be cut from 5-20 percent. It is estimated the legislation will reduce the government’s tax revenues by roughly NT$211 million (US$6.7 million), the report said.

The amendment draft of the Customs Import Tariff was proposed by the Executive Yuan in April. The aim is to bolster free trade, according to the Ministry of Finance.

However, Yeh Chi-jen (葉基仁), a researcher at the Taiwan Institute of Economic Research, said the amendments would have a “very limited” effect on ameliorating the trade relationship with Japan, another CNA report said. Japan is still most concerned about Taiwan’s ban on imports of food products from Fukushima and other prefectures, he said.

Nevertheless, Yeh noted the amendments demonstrate that Taiwan has done its part in promoting free trade and aligning with the global market. It might make it a little easier for Taiwan should the country succeed in taking part in CPTPP negotiations in the future, he added.

Taiwan prohibits importing food manufactured from the Fukushima region, due to the nuclear disaster caused by an earthquake-triggered tsunami in 2011. To abide by the result of a contentious referendum on the issue, the Taiwan government said last year it would maintain the ban on Fukushima food products for two more years.

The referendum has marred the trade relationship between Taiwan and Japan, with the Japan government expressing deep regret after the referendum, in November 2018. It even considered taking the issue to the World Trade Organization (WTO) for arbitration, reported the Japan Times.

Some countries and blocs such as the European Union have partially or thoroughly lifted Fukushima food barriers in recent years. However, the WTO, in April, backed South Korea’s import ban on seafood from Fukushima and seven prefectures.