Joining the Trans-Pacific Partnership (TPP) Will Help Our Country's Frozen Vegetable and Fruit Industry Expand into Overseas Markets

Understand the Trans-Pacific Partnership (TPP) in Two and a Half Minutes

To build consensus across all sectors on the government's push to join the Trans-Pacific Partnership (TPP), the Ministry of Economic Affairs, through the board and supervisory meetings or general membership meetings of various industry associations, has taken the initiative to explain to industry the impact of joining the TPP and the government's approach to advancing this case. On August 11, Hung Ching-ting, Secretary of the Office of Trade Negotiations under the Ministry of Economic Affairs, was invited to the Taiwan Frozen Vegetable and Fruit Industry Association to brief industry operators on the progress of the TPP/RCEP negotiations and our country's preparatory work.

According to the briefing, in 2014 Taiwan's exports of frozen vegetable and fruit products to TPP countries amounted to about US$82.22 million, accounting for about 85.26%, with Japan, the United States, Canada, Australia and Singapore being the main export markets. The tariff treatment is detailed in the attached table.

Tariff reductions in the above main export markets of our country will have a positive benefit for our exports. As for other TPP members such as Vietnam and Mexico, the average tariffs on non-zero-tariff items for frozen vegetable and fruit products are 18.75% and 15.84% respectively, so joining the TPP will also help us expand into these new markets.

Association Chairman Liu Kuei-ping stated that the industry's main product at present is edamame, with Japan as the main export market, and it has maintained a growth rate of 6% every year, which is quite an achievement. However, this product now faces competition from countries such as Thailand, China and Indonesia, and Chairman Liu called on members to continue maintaining the competitiveness of Taiwan products through mechanization, expanding productivity and improving product quality.

Association members expressed approval of the government's push to join the TPP and of sending personnel to explain it in person, and hoped that the government, through joining the TPP/RCEP negotiations, signing bilateral FTAs or other feasible means, would help manufacturers reduce the cost of exporting edamame to Japan, so that Taiwan manufacturers can compete on equal terms with countries such as Thailand and Indonesia.

Secretary Hung responded that the government attaches great importance to the opinions of the manufacturers present, and will therefore strive to strengthen communication with the industry, with the aim of building consensus across all sectors, seeking to join regional economic integration such as the TPP/RCEP, and actively working through various channels to reduce trade barriers between Taiwan and Japan, so as to enhance the international price competitiveness of our country's frozen vegetable and fruit products and consolidate our industry's position in the global supply chain.

In addition, the Ministry of Economic Affairs has always spared no effort in helping industry expand sales, through diversified promotional approaches, including "going out" - helping our businesses participate in international exhibitions; "bringing in" - expanding foreign buyers' procurement in Taiwan; "boosting capacity" - strengthening support in talent, capital and information; "expanding networks" - adding locations, dispatching frontline staff, setting up commercial centers and building sales channels; "shaping image" - enhancing Taiwan's industry image and international brand awareness. Among these, in the part about helping our businesses participate in international exhibitions, the Ministry of Economic Affairs this year subsidized the Frozen Vegetable and Fruit Association to attend exhibitions in Germany and Japan, in order to expand overseas market opportunities.