Composite Fabric,bonded fabric,Lamination Fabric Lamination Fabric News If Taiwan does not seek to join the TPP, it will intensify the exodus of the textile industry.

If Taiwan does not seek to join the TPP, it will intensify the exodus of the textile industry.



With the release of the text of the Trans-Pacific Partnership Agreement (TPP), Taiwan’s Ministry of Economic Affairs and other ministries and commissions disclosed for the first time on the 10th their assessmen…

With the release of the text of the Trans-Pacific Partnership Agreement (TPP), Taiwan’s Ministry of Economic Affairs and other ministries and commissions disclosed for the first time on the 10th their assessment of the impact and benefits of the TPP on some industries in China. Among them, the textile industry has been targeted as the industry most affected by the TPP coming into effect. However, the Ministry of Economic Affairs assesses that the impact will not be significant in the short term, but the second wave of tax cuts will be launched in five years, which will severely impact the industry, which may intensify the crisis of industrial exodus.

This time the TPP text rarely stipulates “textiles and garments” as an independent chapter, which shows the importance of this industry in the entire TPP. After the TPP takes effect, textile and garment products will be divided into immediate, 5-year and 15-year tax reduction models, and the origin regulations will adopt “Yarn Forward”. For those on both sides of the Taiwan Strait that have not yet joined the TPP, many businesses are worried that their local industrial chains will leave together.

However, the TPP also proposed a “supply shortage list” of 194 items for textile raw materials that are not produced or in short supply within the region, allowing products to be supplemented with products from outside the region. The Ministry of Economic Affairs assesses that Taiwanese businessmen still have breathing room in the short term.

But such golden years may only last 5 years. Wu Mingji, director of industry at Taiwan’s Ministry of Economic Affairs, analyzed that many member countries have chosen to launch the first wave of tax cuts in five years in order to prepare for more investment. Wu Mingji believes that Taiwanese businessmen are very good investment targets for many countries. In other words, if Taiwan cannot seize the opportunity to join the TPP within five years, not only the downstream garment industry will be forced to move overseas, but even the upstream petrochemical industry may also leave.

In addition to the textile industry, agriculture and other traditional industries such as bicycles and machine tools are among the industries that have been hit harder. Wu Mingji said that machine tools will face challenges from Japan, a member of the TPP; in terms of agriculture, Xiao Dongqiong, deputy director of the International Division of the Council of Agriculture of the Executive Yuan, admitted that there will be an impact after joining, especially since the TPP stipulates that WTO defensive measures are not allowed, that is, exceeding quotas No tariffs shall be increased. However, judging from Japan’s success in obtaining exceptions for important industries involving disadvantaged groups, Taiwan may also have the opportunity to obtain exceptions when it joins.

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Author: clsrich

 
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