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Chinese Taipei donates CHF 35,000 for implementation of Trade Facilitation Agreement
The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) has donated nearly CHF 35,000 in 2016 to help the WTO’s developing and least-developed countries (LDCs) reap the full benefits of the Trade Facilitation Agreement. This is Chinese Taipei’s first contribution to the Trade Facilitation Agreement Facility (TFAF), which aims to help developing countries implement the TFA (Trade Facilitation Agreement).
Director-General Roberto Azevêdo said: “I welcome Chinese Taipei’s generous contribution, which will support developing and least-developed countries in implementing the Trade Facilitation Agreement. Reducing the time and costs to move goods across borders will increase the economic prospects of these countries and help them to better integrate into the global economy.”
The Permanent Representative of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu to the WTO, Dr Shin-Yuan Lai, said: “By contributing to the Facility, we aim to help developing and least-developed countries increase their capacity to implement the WTO’s new Trade Facilitation Agreement. This agreement will be key in helping poorer members to achieve economic growth through trade.”
Overall, Chinese Taipei has donated nearly CHF 2 million to WTO trust funds in 15 years.
The TFA has a huge potential to reduce trade costs thereby boosting trade between countries and raising world income. OECD studies find that the implementation of the TFA could reduce worldwide trade costs between 12.5% and 17.5%. Developing country exports are expected to grow between 14% and 22% while becoming more diversified. Companies are more likely to become more profitable which should encourage domestic investment. In addition, foreign direct investment is likely to be attracted to countries that fully implement the TFA. Finally, increased trade means better employment prospects for workers and greater revenue collection by the government.