Joining the TPP would be a major boon for our country's biotech industry

To build consensus across all sectors for the government's push to join the TPP, the Bureau of Foreign Trade of the Ministry of Economic Affairs has taken the initiative to explain to industry the efforts being made to join the TPP and the benefits for industry, through the board and supervisory meetings or general membership meetings of various industry associations and chambers. On May 4, Yang Jenni, Director-General of the Bureau of Foreign Trade of the Ministry of Economic Affairs, was invited to speak at the general membership meeting of the Taiwan Medical and Biotech Equipment Industry Association about the progress of the TPP/RCEP negotiations and our country's preparatory work. Members of the association expressed their approval of the government's efforts to join the TPP and create business opportunities for manufacturers.

In her speech, Yang Jenni, Director-General of the Bureau of Foreign Trade of the Ministry of Economic Affairs, pointed out that from an institutional perspective, joining the TPP would deepen our country's cooperation with the respective member states in the biotech industry and technology, helping our businesses upgrade their technology and participate in global supply chains; the elimination of non-tariff barriers, information exchange and transparency rules would also help reduce our businesses' export costs, time and regulatory uncertainty, and shorten time to market.

Yang Jenni, Director-General of the Bureau of Foreign Trade of the Ministry of Economic Affairs, also welcomed businesses to notify the Bureau of Foreign Trade when they have concerns about inspection measures by local governments in export markets, and the Bureau of Foreign Trade of the Ministry of Economic Affairs would assist businesses in further verification. The association currently has about 400 member manufacturers, whose main related product categories include medical consumables, hospital equipment, rehabilitation equipment, medical instruments, diagnostic test reagents, biomedical materials and so on.

The Bureau of Foreign Trade of the Ministry of Economic Affairs has always spared no effort in helping the medical industry expand sales, through diverse 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 business centers and building sales channels; "shaping image" - enhancing Taiwan's industry image and international brand awareness. In the part about helping our businesses participate in international exhibitions, the Bureau of Foreign Trade this year subsidized the medical association to attend medical exhibitions in emerging markets such as the UAE, Brazil, Mexico, Malaysia, Myanmar, the Philippines, Vietnam and Russia, to expand overseas market opportunities.

Among our country's top ten export destinations for medical equipment, the TPP countries include the US, Japan and Australia, together accounting for nearly 1/2, with export value in 2014 exceeding NT$20 billion. Taking orthopedic and bone-setting appliances as an example, Australia still levies a 3.3% tariff; if we join the TPP, it would effectively expand the market for these medical equipment products of ours. As for other TPP members that are developing countries, such as Mexico, the average tariff on medical equipment products with non-zero tariffs reaches 5.15%, so joining the TPP would also bring positive benefits for expanding that market.

The biotech and pharmaceutical industry is a high value-added industry combining innovative R&D and value creation, and the government has enacted dedicated legislation to encourage its R&D investment. If in the future we successfully participate in regional economic integration such as the TPP/RCEP, we will further connect with the world's major markets and extend into emerging markets, and the links in the value chain of our country's biotech and pharmaceutical industry, from R&D to market launch to marketing, will be more closely integrated, making our country a major global hub for biotech and pharmaceuticals.