AhoyCargo

World Trade

Organization WT/MIN(01)/41

11 November 2001

(01-5316)

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MINISTERIAL CONFERENCE

Fourth Session

Doha, 9-13 November 2001

REPORT OF THE WORKING PARTY ON THE

ACCESSION OF THE SEPARATE CUSTOMS TERRITORY

OF TAIWAN, PENGHU, KINMEN AND MATSU

TABLE OF CONTENTS

Chapter I. INTRODUCTION

Chapter II. INFORMATION PROVIDED

Chapter III. INTRODUCTORY STATEMENTS

Chapter IV. ECONOMIC POLICIES

Chapter V. FRAMEWORK FOR MAKING AND ENFORCING POLICIES

Chapter VI. POLICIES AFFECTING TRADE IN GOODS

Chapter VII. TRADE RELATED INTELLECTUAL PROPERTY REGIME

Chapter VII. POLICIES AFFECTING TRADE IN SERVICES

Chapter IX. TRANSPARENCY

Chapter X. OTHER TRADE AGREEMENTS

Chapter XI. CONCLUSIONS

DECISION

PROTOCOL

ANNEX I SCHEDULE CLIII PART I - GOODS

ANNEX I SCHEDULE CLIII PART II - SERVICES

ANNEX II

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Notes:

1. This document reprints the document distributed as WT/ACC/TPKM/18 on 5 October 2001.

CHAPTER 1

INTRODUCTION

I. INTRODUCTION

1. At its meeting on 29 September-1 October 1992, the GATT 1947 Council of Representatives established a Working Party, as reflected in the respective Minutes (document C/M/259), to examine the application of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (hereinafter referred to as "Chinese Taipei") to accede to the General Agreement 1947 under Article XXXIII, and to submit to the Council recommendations which may include a Draft Protocol of Accession. Membership of the Working Party was open to all contracting parties wishing to serve on it. Following the request of Chinese Taipei, circulated in document WT/ACC/TPKM/1, and pursuant to the decision of the General Council of 31 January 1995, the Working Party was transformed into a World Trade Organization (WTO) Working Party to negotiate the terms of accession of Chinese Taipei to the Marrakesh Agreement Establishing the World Trade Organization (hereinafter referred to as the "WTO Agreement") under Article XII of that Agreement.

2. The Working Party met on 6 November 1992, 15 April 1993, 28 June 1993, 12 October 1993, 17 May 1994, 26 July 1994, 21 December 1994, 28 February 1997, 8 May 1998, 12 May 1999, and 18 September 2001 under the Chairmanship of H.E. Mr. M. Morland (United Kingdom). The terms of reference and the membership of the Working Party are set out in document WT/ACC/TPKM/6/Rev.6.

INFORMATION PROVIDED

II. INFORMATION PROVIDED

3. The Working Party had before it, to serve as a basis for its discussion, the memorandum on Chinese Taipei's foreign trade regime (L/7097 and Addenda 1 - 11) and the questions submitted by Members on the foreign trade regime of Chinese Taipei together with the replies of the Chinese Taipei authorities thereto (L/7089/Rev.1, L/7429 and Add.1), and documents Spec(94)28 (Newly Promulgated or Revised Laws and Regulations), Spec(94)30 (Description of Service Sectors), Spec(94)31 and Add.1 (Special Exchange Agreement), Spec(94)41 (Status Report of the Bilateral Negotiations), Spec(95)1 and Corr.1 (Checklist of Accession Issues - Preliminary Responses Provided by Chinese Taipei), Spec(95)8 (Laws and regulations regarding agricultural products), WT/ACC/TPKM/2 (Tariff reductions for 758 tariff lines effected as from 14 July 1995), WT/ACC/TPKM/3 (Newly Promulgated or Revised Laws and Regulations), and WT/ACC/TPKM/4 (The Customs Import Tariff and Classification of Import and Export Commodities: revised edition of August 1995); WT/ACC/TPKM/8/Rev.2 and WT/ACC/TPKM/9/Rev.2 (Information on Industrial Subsidies); WT/ACC/TPKM/10 (Adoption of Codex Standards); WT/ACC/TPKM/12 (Standards for Agricultural and Processed Agricultural Products); WT/ACC/TPKM/13 (List of Commodities Subject to Export Restriction and List of Commodities); WT/ACC/TPKM/14 and Corr.1 and Add.1 (Additional Questions and Replies Concerning Domestic Support and Export Subsidies). In addition, the representative of Chinese Taipei made available to the Working Party the following material:

Customs Regime:

- Customs Law;

- Rules Governing the Implementation of the Customs Law;

- Implementing Regulation on the Imposition of Countervailing Duty and Anti-Dumping Duty;

- Rules for the Collection of Customs Fees.

Trade Regime:

General:

- Foreign Trade Act;

- Enforcement Rules of the Foreign Trade Act;

- Regulations Governing the Process of Objections Against Punishment on Violation of Foreign Trade Act;

- Customs Import Tariff and Classification of Import & Export Commodities (June 1998 Revised Edition);

- Consolidated List of Commodities Subject to Import Restriction and Commodities Entrusted to Customs for Import Examination (January 2000 Edition);

- Regulations Governing Import of Commodities by Business Firms;

- Regulations Governing Registration and Administration of Exporters and Importers;

- Regulations Governing Revenue, Expenditure, Custody, and Use of Trade Promotion Fund;

- Rules for Handling Import Relief Cases;

- Import Regulations Codes.

Industrial Goods:

- Regulations Governing Export and Import of High-Tech Commodities;

- Operating Rules for Screening Applications to Import Fishing Vessels Using New Fishing Methods;

- Requirements for Imported Drug Registration;

- Veterinary Drugs Control Act;

- Agro-Pesticide Act;

- Guidelines Governing the Application for and Issuance of Fertilizer Registration Certificate;

- Operating Regulations Governing the Control of Restricted Methyl Bromide;

- Regulations of the Industrial Development Bureau of the Ministry of Economic Affairs for Controlled Substances Pursuant to the Montreal Protocol.

Agricultural Goods:

- Statute for Agricultural Development;

- Regulations Governing Relief and Aid for Major Agricultural Products Damages by Importation;

- Guidelines for Screening Applications for Letter of Approval for the Importation of Livestock and Poultry;

- Guidelines for the Issuance of Written Approval Regarding the Importation of Aquatic Animals;

- Guidelines Governing Food Companies Applying to Import Raw Glutinous Rice/Powder for Processing for Export;

- Operating Procedures Governing Applications to Import Wheat and Operation of the Stabilization Fund;

- Operating Procedures Governing Applications to Import Wheat Flour and Operation of the Stabilization Fund;

- Feeds Control Act;

- Guidelines Governing Applications to Import Aduki Beans;

- Screening Procedures and Criteria Governing the Issuance of Written Approval for the Importation of Dried Betel Nuts (Ta-Fu-Tzu).

Investment Regime:

- Statute for Investment by Foreign Nationals;

- Negative List for Investment by Overseas Chinese and Foreign Nationals;

- Statute for Upgrading Industries;

- Enforcement Rules of the Statute for Upgrading Industries;

- Statute for Development of Medium and Small Businesses;

- Statute for Establishment and Management of Export Processing Zones;

- Aeronautics and Space Industries Development Programme;

- Automotive Industry Development Policy.

Other Texts Affecting Trade:

General:

- Income Tax Law;

- Business Tax Law;

- Statute for Commodity Tax;

- Statute for Foreign Exchange Regulation;

- Fair Trade Law.

Intellectual Property Rights:

Copyright:

- Copyright Law;

- Implementation Rules of the Copyright Law;

- Copyright Intermediary Organization Act;

- Illustrated Contents of 'Each Kinds of Works' in Paragraph One, Article 5 of Copyright Law;

- Certain amounts of Items 2 and 3 of Paragraph One of Article 87bis of the Copyright Law;

- Standard for Compensation for Fair Use of Works in Paragraph4, Article 47 of the Copyright Law;

- Regulations Governing Application for Approval of Compulsory License of Musical Works;

- Regulations Governing Registration of Plate Rights;

- Implementation Regulation for Suspension of Release of Goods Infringing on Copyright or Plate Right by Customs Authority;

- Regulation of Copyright Dispute Mediation;

- Organic Charter of the Copyright Examination and Mediation Committee of IPO, Ministry of Economic Affairs;

- Agreement for the Protection of Copyright between the Coordination Council for North American Affairs and the American Institute in Taiwan;

- Agreement Concerning the Protection and Enforcement of Rights in Audiovisual Works between the Coordination Council for North American Affairs and the American Institute in Taiwan.

Trademark:

- Trademark Law.

Patent:

- Patent Law.

Standards, Quarantine, Inspection:

Standards:

- Provisional Standard for Hi-Fi and Stereo Equipment.

Quarantine:

- Quarantine Requirements for the Importation of Animal and Animal Products;

- Quarantine Regulations on Imported Fishery Products;

- Quarantine Restrictions on the Importation of Plants and Plant Products;

- Statute for Prevention and Control of Infectious Animals Diseases;

- Implementation Rules of the Statute for Prevention and Control of Infectious Animals Diseases;

- Regulations Governing the Quarantine at International Ports.

Inspection:

- Commodity Inspection Law;

- Enforcement Rules for the Commodity Inspection Law (Implementation Rules of the Commodity Inspection Act).

Others:

- Commodity Labelling Law;

- Law Governing Food Sanitation;

- Enforcement Rules of the Law Governing Food Sanitation;

- Law for the Control of Cosmetic Hygiene.

Government Procurement:

- Law of Audit;

- Rules Governing Procuring Goods of Foreign Origin;

- Ordinance Concerning Inspection Procedure Governing Construction Work, Procurement and Disposal of Properties by Government Agencies.

Others:

- Guidelines for Screening Applications for Written Import/Export Approval Regarding Wild Fauna and Flora Deserving Conservation;

- Wildlife Conservation Law;

- Implementing Regulations of the Wildlife Conservation Law;

- Rules of Royalty Rate for Public Interest Activities.

Trade in services:

Schedule of Commitments:

- Schedule of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu Concerning Initial Commitments on Trade in Services (WT/ACC/TPKM/18/Add.2).

Banking:

- Banking Law;

- Guidelines for the Screening and Approval of the Establishment of Branches and Representative Offices by Foreign Banks.

Insurance:

- Insurance Law;

- Insurance Company Establishment Criteria;

- Criteria for Approving Foreign Insurance Enterprises and the Governing Regulation;

- Central Reinsurance Corporation Act.

Securities:

- Securities and Exchange Law;

- Foreign Futures Trading Law;

- Regulations Governing the Standard for Incorporation of Securities Companies;

- Rules for the Administration of Securities Investment Trust Enterprises.

Others:

- Broadcasting and Television Law;

- Motion Picture Law;

- By-laws Governing the Execution of the Motion Picture Law;

- Employment Service Act;

- Rules Governing the Approval and Administration of Foreign Specialist and Technical Personnel Employed by Public or Private Enterprises and Ranking Executives Employed by Overseas Chinese or Foreign National Invested Enterprises.

INTRODUCTORY STATEMENTS

III. INTRODUCTORY STATEMENTS

4. In his statements the representative of Chinese Taipei inter alia recalled that this Separate Customs Territory, which encompasses the islands of Taiwan, Penghu, Kinmen and Matsu, was short of natural resources. Its only substantial resource - labour - was the source of its strong rate of growth. The main economic indicators were as follows:

Chinese Taipei’s Main Economic Indicators

 

Year	GNP (Billion US$)	GNP per Capita (US$)	*Annual Final Budget (Billion US$)	Annual Changes in Prices		Unemployment Rate (%)	Foreign Exchange (Billion US$)	Export Statistics (Billion US$)	Import Statistics (Billion US$)
				Consumer price (%)	Wholesale price (%)
1993	228.6	10,964	42.7	2.9	2.5	1.5	83.6	85.1	77.1
1994	248.3	11,806	39.6	4.1	2.2	1.6	92.5	93.0	85.3
1995	269.1	12,686	42.4	3.7	7.4	1.8	90.3	111.7	103.6
1996	283.6	13,260	40.9	3.1	-1.0	2.6	88.0	115.9	102.4
1997	293.3	13,592	44.8	0.9	-0.5	2.7	83.5	122.1	114.4
1998	269.2	12,360	34.6	1.7	0.6	2.7	90.3	110.6	104.7
1999	290.5	13,235	40.7	0.2	-4.6	2.9	106.2	121.6	110.7
2000	314.4	14,216	76.2	1.3	1.8	3.0	106.7	148.3	140.0

-            Since 1960, the "Fiscal Year" refers to the 12-month period beginning from 1 July 1 of the preceding year to 30 June of the designated year. The item excludes repayment of government debt.

-            In 2000, the "Fiscal Year" refers to the 18-month period beginning from 1 July of 1999 to 31 December 2000. The item excludes repayment of government debt.

Chinese Taipei’s Expenditure on Gross National Product

Unit: Billion US$

 

Year	Gross National Product	Gross Domestic Product	Private Consumption	Government Expenditure	Gross Fixed Capital Formation	Increase in Inventory	Export of Goods & Services	Imports of Goods & Services
1993	228.6	224.3	126.9	35.0	56.4	2.3	98.9	95.2
1994	248.3	244.3	142.6	35.6	60.0	2.0	106.6	102.5
1995	269.1	264.9	155.7	37.7	66.1	1.0	127.1	122.7
1996	283.6	279.6	165.3	40.0	62.9	2.0	132.6	123.1
1997	293.3	290.2	172.0	41.7	66.0	4.2	140.1	133.8
1998	269.2	267.2	159.4	38.2	62.9	3.7	127.7	124.8
1999	290.5	287.9	174.8	37.9	65.8	1.4	139.0	131.1
2000	314.4	310.1	192.8	40.4	72.3	-1.6	168.1	161.8

Chinese Taipei’s Employment Population by Sectors

Unit: 1000 Persons

 

Year	Agriculture Sector	Industrial Sector	Services Sector
1993	1,005	3,418	4,323
1994	976	3,506	4,456
1995	954	3,504	4,587
1996	918	3,399	4,751
1997	878	3,502	4,795
1998	822	3,523	4,944
1999	776	3,492	5,116
2000	740	3,534	5,218

Chinese Taipei’s Balance of Payments

Unit: Million US$

 

Year	Current Account	Capital Account	Financial Account	Reserves
1993	7,042	-328	-4,629	-1,541
1994	6,498	-344	-1,397	-4,622
1995	5,474	-650	-8,190	3,931
1996	10,923	-653	-8,633	-1,102
1997	7,051	-314	-7,291	728
1998	3,437	-181	2,495	-4,827
1999	8,384	-173	9,220	-18,593
2000	8,903	-287	-8,019	-2,477

5. He added that government policies had restructured the economy from agriculture towards basic and heavy industries. As part of an import substitution and integration process, intermediate goods industries were established. Transportation was streamlined and large investments were made in new ports, airports and highways. The Chinese Taipei authorities had also intensified rural development and supported the moves to improve farm income. More recently, industrial restructuring was further promoted. Educational institutions placed greater emphasis on science and technology in order to provide a highly trained workforce. In the 1990's, economic liberalization and the internationalization of the economy had continued. Infrastructure investments, the regulation of pollution and the privatization of the economy had accelerated. Employment had shifted from the agricultural sector to the industrial and service sectors. The representative of Chinese Taipei also stated that when Chinese Taipei initiated its import-substitution strategy, exports were mostly composed of sugar, rice, bananas, tea and processed agricultural products. Few industrial products were sufficiently competitive for export. Gradually the import substitution industries became capable of producing competitive export products. As a result, the share of exports of traditional products declined whilst industrial products took an increasing share of exports. At first, major export items were labour intensive products such as textiles and plywood. Recently, electronic goods had become major export items. Recent total exports value in US$000 was as follows:

 

Year	Total
1993	85,091,458
1994	93,048,783
1995	111,658,800
1996	115,942,064
1997	122,080,673
1998	110,582,300
1999	121,591,000
2000	148,320,500

 

Recent total imports value in US$000 was as follows:

 

Year	Total
1993	77,061,203
1994	85,349,194
1995	103,550,044
1996	102,370,021
1997	114,424,665
1998	104,665,300
1999	110,689,900
2000	140,010,600

6. Referring to the direction of the future economic policies, the representative of Chinese Taipei said that overall global economy expanded steadily in 1997, in contrast, Chinese Taipei’s economy reached its slowest growth rate that year at 6.8 per cent, the highest in six years. Economic growth for 1995 and 1996 had been 6.0 per cent and 5.7 per cent respectively. The upturn in Chinese Taipei’s economy could be attributed to strong private investment and consumption. In 1997 inflation was low at the rate of 0.9 per cent, compared with 3.7 and 3.1 in 1995 and 1996. Trade surplus in 1997 was US$7.7 billion. For 1998, the economy of Chinese Taipei was expected to grow 5.3 per cent, with per capita GNP expected to reach almost US$12,030 and consumer prices to rise 1.9 per cent. Nevertheless, these expectations would depend on whether public investment projects proceed according to schedule. An additional source of major impetus to growth would be the private sector as a result of strength in private consumption, steady improvement in the investment climate and greater private investment in public projects. In his statements he also outlined the sectors where Chinese Taipei would need transition periods to bring specific measures into full conformity with WTO obligations and said that Chinese Taipei was ready to assume obligations comparable to those undertaken by WTO Members with a comparable level of economic development. The representative of Chinese Taipei stated that his government would not claim any right granted under WTO Agreements to developing country Members or to a Member in the process of transforming its economy from a centrally-planned into a market, free-enterprise economy.

7. Members of the Working Party warmly welcomed the application of Chinese Taipei for accession to the WTO. Notwithstanding limitations on its natural resources and the relative size of the economy, Chinese Taipei had transformed itself into one of the world's most dynamic trade centres. Chinese Taipei's membership of the WTO would strengthen the multilateral trading system. Members also congratulated Chinese Taipei on its willingness to make the required adjustments promptly and to only seek a minimum of transition periods in which to bring its economy fully into conformity with the requirements of the WTO. Members noted, however, that membership of the WTO required full observance of the MFN and national treatment principles, in particular, GATT 1994 required the grant of any advantage, favour, privilege or immunity granted by any contracting party to any product originating in or destined for any other WTO Member or other country or separate customs territory, whether or not a contracting party, to products originating in or destined for the territories of all other contracting parties. Similar MFN requirements applied in respect of the General Agreement on Trade in Services (GATS) and the Agreement on Trade-Related Aspects of Intellectual Property (TRIPS). It also required the taking of comprehensive market access commitments on goods, including agricultural products, and services, which would be reflected in the respective Schedules of Concessions and Commitments annexed to the Draft Protocol of Accession. Several members of the Working Party were of the view that Chinese Taipei should assume a level of obligations commensurate to that of the developed economy original Members of the WTO, and that Chinese Taipei should apply the WTO Agreement fully from the date of accession, without recourse to any transition periods.

8. The representative of Chinese Taipei acknowledged the importance of observing the principles of MFN and national treatment in the WTO and the broad scope of that obligation. He stated that upon accession Chinese Taipei would fully observe its MFN and national treatment obligations in respect of any advantage, favour, privilege or immunity granted to WTO Members or other countries or separate customs territories, unless specifically exempted from its GATS commitments.

Chapter IV

ECONOMIC POLICIES

IV. ECONOMIC POLICIES

Foreign Exchange Policies

9. In response to requests from members of the Working Party for information on the foreign exchange system prevailing in Chinese Taipei, the representative of Chinese Taipei stated that all current account transactions were free from foreign exchange controls. As for residents, any company or individual could freely settle foreign exchange with authorized banks up to an amount of US$50 million and US$5 million respectively per year. As for non-residents, any non-resident could open a NT dollar account with local commercial banks. However, foreign financial institutions outside the territory of Chinese Taipei could only deposit locally earned revenue of NT dollars into their accounts. There was no restriction when the remittance was related to an outward/inward investment project approved by the competent authority. The foreign exchange rate was determined by the market, and there were no discriminatory currency practices. In response to further questions, he said that enterprises established under the Company Law of Chinese Taipei could freely purchase the foreign exchange required for imports or for invisible trade settlements through the authorised foreign exchange banks without any restriction. There was no restriction on the use of foreign exchange for overseas investment provided that the investment had been approved by the authorities. Authorized foreign exchange banks and foreign banks were free to take part in the Chinese Taipei foreign currency call loan market. Since 1991, forward foreign exchange transactions had been permitted. The representative of Chinese Taipei said that these requirements would be gradually phased out as market conditions permitted. He expressed the view that Chinese Taipei's foreign exchange practices were fully consistent with Article XV of the GATT 1994.

10. Some members of the Working Party noted that Chinese Taipei was not a member of the International Monetary Fund (IMF) and thus would have to enter into a Special Exchange Agreement as provided for in Article XV:6 of the GATT 1994 incorporating obligations consistent with Fund Article VIII. Some members also expressed concern that elements of Chinese Taipei's foreign exchange system provided scope for practices that distorted trade flows. The representative of Chinese Taipei said that in the context of accession to the WTO, Chinese Taipei was prepared to comply with the provisions of Article XV of the GATT 1994 regarding its foreign exchange restrictions. He added that in order to comply with GATT 1994 Article XV, Chinese Taipei had negotiated a Special Exchange Agreement with the WTO.

- Pricing Policies

11. Some members of the Working Party noted that Chinese Taipei had price controls for the domestic prices of certain commodities and that there were no price controls applied exclusively to imports, they requested a full list of the products subject to price controls, and the plans to eliminate such price controls. In response the representative of Chinese Taipei stated that price controls applied primarily in the area of public utilities under control of the Public Utility Rate Commission. The products specified in the list reproduced in Attachment A to this Report were the only ones subject to price controls. In relation to the sale of tobacco and alcoholic beverages, the representative of Chinese Taipei stated that minimum profit or pricing of tobacco and alcohol products had been abolished. The regulation on the maximum retail margin would cease to be effective when the monopoly system was formally abolished. He further added that petroleum, natural gas and liquefied petroleum gas were subject to price controls in order to maintain stability in energy prices. Salt, sugar and fertilizer were subject to price controls to stabilize farmers' income and production costs. Chinese Taipei intended to phase out price controls as soon as possible, keeping in view the objectives noted above. Future liberalization of price controls would take into account the timetable for privatizing state enterprises which had been involved in exercising price controls, such as the Taiwan Fertilizer Company, and the Taiwan Salt Industrial Corporation The Chinese Petroleum Corporation's monopoly on activities had been phased out since 1996 and price controls on petroleum and liquified petroleum gas were removed in 2000. Fertilizer had also been removed from price controls in 1999 due to the privatization of the Taiwan Fertilizer Company. Some members of the Working Party noted that they could see no justification for price controls on sugar and salt. In response, the representative of Chinese Taipei stated that the price controls on salt were expected to be abolished by the end of June 2002. Domestic sugar prices were set by Taiwan Sugar Corporation, which was the sole supplier of sugar. The sugar price set by Taiwan Sugar Corporation took into account the price at which Taiwan Sugar purchased sugar cane from local growers (which was set 10 years ago according to the farmers' production cost at that time), and its own cost of production. The domestic sugar price had been decreasing, as the increase in import of sugar (the cost of which was lower), helped to bring down Taiwan Sugar's cost. Industrial users of sugar were consulted, in order to ensure that the price control would not seriously affect their competitiveness. There was no discrimination between cane and beet sugar. The price control system would be replaced by the implementation of a tariff rate quota system upon Chinese Taipei's accession. The private sector would be free to import sugar at out-quota rates. Upon accession, the private sector would have access to an annual sugar tariff quota. Therefore, importation of sugar would not be subject to monopoly. With the private sector free to import sugar, market prices would be determined by market forces. It was expected that the oil product market would be fully liberalized by the end of 2001. It was not Chinese Taipei's policy to add to the list of products subject to price control set out in Attachment A to this Report, unless the economy or a specific sector thereof was in serious difficulty or in a state of emergency.

12. The representative of Chinese Taipei stated that, from the date of accession, Chinese Taipei would ensure that price controls applied to the products covered in the list reproduced in Attachment A to this Report, and to any other product, would be applied in a WTO-consistent fashion, taking account of the interests of exporting WTO Members as provided for in Article III:9 of the GATT 1994. The price levels of the goods subject to price controls would be published in accordance with Article X of GATT 1994. The Working Party took note of these commitments.

FRAMEWORK FOR MAKING AND ENFORCING POLICIES

V. FRAMEWORK FOR MAKING AND ENFORCING POLICIES

Powers of Executive, Legislative and Judiciary, Administration of Policies on WTO-related Issues

13. In response to requests for information, the representative of Chinese Taipei stated that the subject matter of international trade, including all matters covered by the WTO Agreements fell within the power of the government of the Separate Customs Territory. In the event that measures taken by local levels of government had an impact upon international trade, those measures became subject to regulation by the government of the Separate Customs Territory which could overrule or invalidate measures of local levels of government. By way of example, he noted that the procurement decisions of local levels of government were subject to the disciplines of the Government Procurement Law made by the government of the Separate Customs Territory. He further noted that a natural or juridical person whose rights and interests in a matter relating to issues covered by the WTO Agreements were impaired by an administrative action in Chinese Taipei was permitted to appeal such action. In cases of administrative action allegedly contrary to law, such appeal would be to the Administrative Court. In cases of an administrative action that was allegedly improper, but not illegal, an appeal committee, organised by a higher administrative level, drawn from government officials not involved in the enforcement of the matter at issue, experts from academia and other experts, would review the matter and recommend a correction to the administrative action.

14. Some members of the Working Party enquired whether international treaties were self-executing under the law of Chinese Taipei and sought a commitment that Chinese Taipei would bring its foreign trade laws and regulations into conformity with WTO provisions at the time of accession. In response, the representative of Chinese Taipei said that international treaties enter into force after being duly ratified and promulgated and would have the same force and effect as domestic laws.

15. The representative of Chinese Taipei confirmed that Chinese Taipei would fully implement its obligations under the WTO Agreement and its Draft Protocol of Accession upon accession to the WTO, unless specifically provided in this Report and Draft Protocol. Further, the government of the Separate Customs Territory would eliminate or nullify measures taken by local levels of government in Chinese Taipei that were inconsistent with WTO provisions from the date of accession. An illustrative list of the laws that would be amended as part of Chinese Taipei's implementation of its obligations is reproduced in Attachment D to this Report. The Working Party took note of this commitment.

 

 

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