Taiwan moving to counter trade deficit with South Korea

Taipei, Sept. 29, 2004 (CENS)--Taiwan's government will organize a trade association with the private sector as part of its plan to cope with the island's escalating trade deficit with South Korea by boosting exports to the Eastern Asian nation.

Taiwan's trade deficit with South Korea is estimated to expand to US$5 billion by the end of this year, up from last year's US$4.1 billion. To reduce the deficit, Taiwan's Ministry of Economic Affairs (MOEA) will coordinate the island's Importers and Exporters Association of Taipei, Taiwan Electrical and Electronic Manufacturers' Association, Taiwan Association of Machinery Industry, Taipei Hsien Computer Association, and Taiwan External Trade Development Council to organize an association to boost exports to South Korea.

Director General T.P. Huang of the ministry's Bureau of Foreign Trade will assume chairmanship of the new organization, which will be established on October 8 this year. Over one hundred local manufacturers have singed up to join the planned association.

Huang pointed out that South Korea is another country, next to Japan, with which Taiwan has suffered the worst trade surplus. Electrical machinery, machinery and organic chemistries accounted for up to 78% of Taiwan's imports from South Korea. Huang's board opened an office in Seoul last year to help Taiwan tap more business opportunities there.

Huang and chairman of the Importers and Exporters Association of Taipei, S.H. Hsu, visited their counterparts at Korea Importers Association early this year to discuss about the feasibility of opening a liaison at each other's organization. Huang pointed out that Korea Importers Association represents the majority of South Korean importers, posing Taiwanese manufacturers huge business opportunities. The South Korean association has organized a committee to handle Taiwan business.