MOEA Will Seek Free Tariff for FPD Export to China

Taipei, July 9, 2009 (CENS)--The Ministry of Economic Affairs (MOEA) has decided to put flat panel display (FPD) and FPD glass on the list of early harvest for the cross-Taiwan Strait Economic Cooperation Framework Agreement (ECFA), so that local manufacturers can expand their market share in China, capitalizing on the edge of free tariff over Japanese and Korean rivals.

The decision was made in response to the request raised by local manufacturers during a meeting with MOEA officials yesterday (July 8), as makers stressed that the removal of the existing 3% tariff will greatly enhance their competitiveness in the Chinese market, which has emerged as one of their major overseas outlets. China still imposes 3% tariff on imported FPD, although the product is on the list of free tariff in the Information Technology Agreement (ITA) of World Trade Organization (WTO), according to MOEA officials.

During the meeting, MOEA officials also promised to study the request of some manufacturers urging the government to allow investments by FDP manufacturers in China.

Industry insiders noted that the Chinese government is offering the incentives of free land and funding support in order to attract investments by Taiwanese FPD manufacturers, so that China can shed its reliance on imported FPD, mainly from Japan, Korea, and Taiwan. Local manufacturers, on the other hand, are keen to tap the Chinese market, in view of its huge potential, including the demand of the Chinese color TV market boasting annual capacity of 100 million units a year.

An MOEA official pointed out that the ministry is prone to liberalize FPD investments in China, so long as local manufacturers can retain key technologies on the island.