Retired Ass't Secretary of U.S. Treasury Suggests Taiwan Join TPP

Ernst & Young Global Ltd. (EY) Chairman and Chief Executive Officer (CEO) Mark A. Weinberger, former U.S. Assistant Secretary of the Treasury, suggests that Taiwan join the Trans-Pacific Partnership (TPP) to enhance opportunities with which the nation can build its economy.

Weinberger points out that the U.S.-led TPP agreement aims to facilitate economic cooperation among 11 major economies on the Pacific Rim and Taiwan will likely become economically marginalized in global trade if failing to join the group simply because the TPP members include almost all of Taiwan's major trade partners.

A study recently released by Chung Hua Institution for Economic Research, a Taiwan government-backed think tank, estimates the TPP membership to boost Taiwan's gross domestic product (GDP) by 1.95 percent and create 65,200 jobs, and conversely could lose 0.27 percent of GDP and 7,038 jobs.

Kenda Rubber Industry Co., Ltd. Chairman Y.M. Yang warns of dire consequences if the island fails to join TPP and Regional Comprehensive Economic Partnership (RCEP) because the headwinds will make doing business with compromised competitiveness to force mass exodus of the island's industry.

Weinberger also suggests Taiwan to complete necessary procedures toward economic liberation in preparation to help it win a seat at the next TPP talks, adding that the membership will further boost Taiwan's integration into the policy, trade and economic framework of Asia Pacific nations that enable more accommodating technology licensing and cash flow, hence providing the island's enterprises opportunity to pursue business growth and develop cross-border business.

He also believes entry into TPP will help Taiwan maintain its key position in global supply chains and attract more inward foreign investment capital, especially when membership improves policy-making transparency.

Weinberger says Taiwan has proven to the world its admirable success in economic development since the 1970s to have built a sound reputation as the world's contract supplier backed by competitive prices and mostly commendable quality. He suggests Taiwan to advance its international competitiveness from the current position by paying more attention to added-value, innovation, R&D and advanced technology.

In reaction to the mainland China-led Asian Infrastructure Investment Bank (AIIB), the top EY executive believes the bank could play a complementary role to boost the global economy by specifically investing in infrastructures of Asian nations, adding that the bank and TPP create synergy, with the bank dedicated to infrastructural investment and the TPP focusing on fostering trade in the Pacific Rim.