How does the free trade economic zone affect Taiwan's agriculture? The KMT caucus invites Chen Chi-chung to a public debate
KMT legislators proposed the "Special Ordinance on Free Trade Economic Zones" draft in the Legislative Yuan in March this year, but public attention only rose rapidly after a Kaohsiung City Councilor's interpellation. Council of Agriculture Minister Chen Chi-chung went live on Facebook this Monday with the title "The Free Trade Economic Zone Harms Farmers: Minister Chen Chi-chung Analyzes It for You," explaining the pros and cons of the free trade economic zone for agriculture and saying bluntly that it "will kill Taiwan's agriculture." Then, the KMT caucus in the Legislative Yuan held a press conference on Wednesday, saying directly that "Chen Chi-chung's criticism has no basis" and inviting Chen Chi-chung to a public debate. The Minister's office at the Council of Agriculture relayed Chen Chi-chung's response, stating that if KMT legislators invite him to a public debate, "the Minister will gladly accept."
In addition to Chen Chi-chung going live to explain the free trade economic zone's impact on Taiwan's local agriculture, President Tsai Ing-wen also posted a video on Facebook on the 8th, expressing support for the Council of Agriculture's position and saying, "....I specifically told Premier Su that Taiwan's good tea must absolutely continue to be maintained, and 'Chinese tea' cannot be processed in the free trade economic zone and then disguised as 'Taiwanese tea' for export." She also demanded that Premier Su Tseng-chang of the Executive Yuan should act as gatekeeper.
In response to outside doubts that low-priced agricultural products from the mainland might be imported in large quantities after the special ordinance on the free trade economic zone is passed, replacing domestic agricultural products as processing materials, KMT legislator Tseng Ming-chung said that Article 9 of the draft special ordinance on the free trade economic zone provides, "....When agricultural products manufactured or processed by designated enterprises of the first category are shipped to the domestic taxable area, they shall be approved by the central agricultural competent authority...." The free trade economic zone will not harm farmers' rights and interests. He said, would the Council of Agriculture allow agricultural products such as bananas and pineapples, which are already grown in large quantities domestically, to be processed and then sold back into the domestic market?
Tseng Ming-chung stressed that the free trade economic zone's "four noes and one absence" include: it will not be a place for origin laundering, it will not cause unfair competition, it will not harm agriculture, it will not become an accomplice of the Chinese Communist Party, and it certainly does not open up mainland Chinese investment. Regarding outside claims that the opened items also include mainland Chinese pork, KMT legislator Lai Shyh-bao rebutted that the draft special ordinance on the free trade economic zone does not relax quarantine regulations, and mainland Chinese pork and pork products still cannot be imported into Taiwan.
In addition to inviting Chen Chi-chung to a public debate on the free trade economic zone, Tseng Ming-chung also invited Minister of Economic Affairs Shen Jong-chin, National Development Council Minister Chen Mei-ling, Minister of Finance Su Jain-rong and others to participate in the debate. In response, the Minister's office at the Council of Agriculture relayed Chen Chi-chung's response, stating that if the special ordinance on the free trade economic zone is passed, it will have a major impact on people's lives, and people across the country should pay attention to the free trade economic zone's impact on agriculture. Therefore, if KMT legislators invite him to a public debate, "the Minister will gladly accept."
Chou Miao-fang, deputy director of the Planning Division of the Council of Agriculture, pointed out that under the free trade economic zone draft proposed by the KMT caucus, firms located in the free trade economic zone could import agricultural products duty-free, process them, and then export them, which could replace domestic agricultural products. The Council of Agriculture estimates that this would impact about NT$200 billion in agricultural processing output value. As for whether the situation of MIC becoming MIT could occur? Chou Miao-fang said that although certificates of origin fall under the jurisdiction of the Ministry of Economic Affairs and the Ministry of Finance, regardless of whether MIT labeling for export is possible, after the draft is passed, firms located in the free trade economic zone will, because they can import low-priced foreign agricultural products duty-free for processing, crowd out opportunities for domestic agricultural products to enter processing plants. When agricultural product prices fall, it will affect domestic farmers' livelihoods.
As for whether the 830 controlled agricultural products from mainland China could be processed and then sold back into the domestic market, Chou Miao-fang said that under Article 9 of the draft, if these controlled agricultural products are to be sold back into the domestic market after processing, they must be approved by the Council of Agriculture. Therefore, although the Council of Agriculture acts as gatekeeper for domestic sales, a control mechanism to prevent outflow still needs to be established. In addition, does the concern exist that mainland Chinese pork could be imported through the free trade economic zone? She said that if the special ordinance on the free trade economic zone is passed, imported agricultural products will still face quarantine issues, and under current disease prevention and quarantine regulations, mainland Chinese pork still cannot be imported.
