The economics ministry says it opposes tacking a surcharge on exports that will enjoy lower tariffs in line with the cross-strait trade in goods agreement. Deputy Economics Minister Woody Duh made the comments on Monday… he was responding to suggestions that the government should use a surcharge to set up a fund that would help disadvantaged industries.
Duh said that the purpose of signing the cross-strait trade in goods agreement is for Taiwanese exports to enjoy lower tariffs and become more competitive in the Mainland Chinese market. He said a surcharge would cancel those benefits.
“For example, if China offers Taiwanese products a 5% tax cut, then our products will be able to compete with South Korean products in the Mainland Chinese market because we both enjoy the same tariff treatment," said Duh. "But if our government adds a 3% surcharge, then these exporters will lose their edge against competitors from South Korea.”
Duh said there’s no precedent anywhere in the world for putting a surcharge on exports after signing a free trade agreement.