Taiwan textile industry not in jeopardy
A free trade zone including the Association of Southeast Asian Nations (ASEAN) and China took effect on January 1. However, while 94% of the products made within the ASEAN Plus One zone are now tariff-free, textiles were not among the listed items.
However, the Taiwan Textile Federation (TTF) says this will not have a long-term impact on the competitiveness of Taiwanese textiles and apparel goods. The tariffs will only remain in place until a proposed economic cooperation framework agreement (ECFA) with China can be signed, it says.
Meanwhile, although Taiwanese textile products are currently subject to an average tax rate of 10.3%, the TTF claims the quality of the goods and ease of delivery makes them highly competitive. It also points out the country has a strong petrochemical industry to provide raw materials for the textile industry.
Taiwan’s textile exports reportedly totalled $9.7 billion in 2008, with exports worth $3.4 billion being shipped to China. The country’s textile firms reportedly paid tariffs of $350 million to China last year. However, the TTF believes the ECFA will soon be signed and is reassuring textile producers that the industry will really benefit from the tariff cuts.
