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Gareth Thomas MP, Former Minister for Trade, Development and Consumer Affairs (jointly with DFID)
Grand Formosa Regent Hotel, Taipei, Taiwan, 15 January 2009
It is a genuine pleasure to be here with you today.
I want to celebrate your successes, particularly those of you who are part of the British business community here; comment on the downturn and to set out how I see the future trade relationship with Taiwan.
Our current trade with Taiwan is now worth more than 200 billion Taiwan Dollars.
Our exports have risen by 30% in the last 5 years.
To demonstrate both Taiwan’s importance to British business and British businesses importance in Taiwan, allow me to not Standard Chartered’s operations here: their largest overseas investment and BP’s majority ownership of the China America Petroleum Company makes it amongst the largest foreign investors here.
Standard Chartered and BP are only two of some 300 UK businesses active here employing more than twenty thousand people, paying taxes and contributing significantly to Taiwan’s economy.
Indeed since 2002, 50 projects from Taiwan have come to the UK, creating more than 2000 new jobs.
Your work is recognised and appreciated.
It creates jobs, wealth and opportunities.
Now, more than ever, Governments must bolster business as we tackle the global economic slowdown.
My specific role here is to lead the UK delegation in bilateral trade talks.
They present an important opportunity to improve the business environment, and to address a small number of discriminatory issues.
I know from my discussions in London that the market here is not always as open as some of you might like.
So a priority for us in the trade talks has been to discuss with the Taiwanese what could be done to make it more open.
Such openness is in Taiwan’s interest too. It would give more choice for consumers, bring in new skills and create employment.
In preparation for there discussions we set out our priorities in a letter to the Taiwanese administration last summer.
Accession to the Government Procurement Agreement was our top priority.
I know many British companies here are delighted that it has now happened.
Again it is good for Taiwan too.
A project open to international tender will give that country a better bang for their buck.
For their part, the Taiwanese have pressed us to support proposals for EU Taiwan Trade Enhancement Measures.
I know the European Chamber here supports this.
We support the principle of such measures and were pleased to help pay for the Chamber’s recent work suggesting EU exports to Taiwan could increase by up to 12 billion euros over 5 years and give a boost to the EU’s GDP of as much as 20 billion euros over 10 years.
I look forward to the Commission’s response to these findings.
For our part, we see an agreement on trade enhancement measures as a business deal.
Politics should not enter into it.
If it is good for business then we will want the Commission to pursue it, subject to other priorities.
Our desire to help Taiwan make its market fairer and more open reflects our general appetite for open markets.
As Ma Ying Jeou said in his inauguration speech, 'Islands like Taiwan flourish in an open economy and wither in a closed one.'
The UK is an island economy too and we think the same.
This is not the time for countries to consider protectionist measures. One country cannot win at the expense of others.
Freer, open markets have a proven track record for helping economies to grow.
Indeed globalisation despite all its challenges has been a ladder out of poverty for the developing world.
UN figures show that people living in extreme poverty fell by 400 million between 1990 and 2005.
Indeed one powerful reason why we continue to push for a conclusion to the Doha Development Round, despite its many stops and starts, is precisely because of the extra opportunities developing countries will win for some of the poorest in their countries by the end or substantial reduction of agricultural subsidies protecting, for example, EU and US cotton markets.
A conclusion to the Round would have worldwide benefits.
It would be a huge boost to global economic confidence especially, given the times we’re in.
Closing a deal in the Doha Round is one part of the international cooperation we see as essential if we are to overcome the challenges facing the global economy.
The UK holds the Chair of the G20 in 2009 and one further reason for me coming here this week is to hear the views of Taiwan, a significant economy and contributor to global wealth as we tackle the slowdown.
Taiwan is better placed than most countries to weather the slowdown, a tribute to years of prudent economic management, but it is not immune.
The UK's response to date has been rapid and received strong international recognition.
Coordinated action is already being taken to reduce interest rates.
We are using fiscal measures to stimulate domestic demand for quick results recognising the need to maintain longer term fiscal sustainability.
Just yesterday our plans to guarantee up to £20 billion of loans to small and medium sized firms was launched.
Taiwan recognises this too with its measures and while the details may be different, we share the same goal.
We have proposed, and received support for, major reform of the international financial system based on the principles of transparency and accountability, better regulation, integrity and international cooperation.
We support the calls to reform the international financial institutions so they can handle more effectively the world’s economic governance for the 21st Century.
Finally through our offices in Taipei and Kaohsiung we will continue to support UK business already in, and looking to, Taiwan.
The Taiwanese market represents a considerable opportunity not least for UK manufacturers and infrastructure business.
As the world’s sixth largest manufacturer, with an industry that is highly innovative and already globalised there is absolutely no reason why more British manufacturers didn’t do well here.
We are very active in the services sector but I would particularly like to encourage a stronger British presence in infrastructure.
GPA accession should help.
I also want more Taiwanese businesses to come to Europe; and the UK is the place to base yourself in the world's largest single market.
The UK is a market open to investment and ideas, with a strong content and creative industries sector.
We will always strive to be the best place for the world to do business.
We are committed to promoting enterprise, we aim to simplify business support and eliminate unnecessary red-tape. And we have a new tax simplification.
With less than 1% of Taiwanese investment overseas going to Europe, there is considerable scope for more.
Taiwan’s investment record in countries like China and Vietnam suggests we can get more Taiwanese businesses to invest in the UK as long as we explain the benefits.
Taiwan is an important business partner; we will push for open markets; we will do what we can to ensure that those creating prosperity are given all the support needed during this difficult time.
Thank you.
