U.S. tariff talks maintain protection for all industry sectors, according to Lai.
Rewritten Article:
President William Lai made it crystal clear to a gathering of business leaders in New Taipei City that none of Taiwan's sectors will be sacrificed in the ongoing trade negotiations with the US. Emphasizing the importance of safeguarding national interests and fostering industrial development, he pledged undying loyalty to this cause.
In his address, Lai stressed the pivotal role small and micro enterprises play in national development. It's crucial, he stated, to prioritize their interests, with over 9 million people employed by these businesses that number around 1.5 to 1.6 million nationwide.
New Taipei City Mayor Hou You-yi chimed in, advocating for increased government transparency, a focus on maintaining a stable power supply, and regular dialogue between policymakers and industry aficionados.
On the issue of power supply, Lai offered reassurance that Taiwan's power grid will remain reliable through 2032, accommodating the growing energy demands from AI and data centers. Moreover, efforts to expand renewable energy resources, such as wind, solar, hydro, and geothermal power, are ongoing.
The initial round of tariff talks with the US has already taken place, with preparations underway for further discussions. In addition, the government had upped the ante on its export supply chain relief package to NT$93 billion (US$2.99 billion), signifying a significant boost to businesses enduring the brunt of the tariffs.
Despite recent downward revisions to global economic forecasts by the IMF, which partly attributes these changes to shifts in US policies, Lai expressed optimism about Taiwan's economic trajectory. Taiwan's GDP is now projected to grow by 2.9 percent this year, up from the initially predicted 2.7 percent.
Notably, the IMF estimated that Taiwan's economy would expand by 2.9 percent in 2023, a 0.2 percentage point increase compared to its previous projection in October 2022.
The IMF's latest report suggests that the imposition of sweeping tariffs by the US has disrupted the global trade system and intensified economic uncertainty [1]. Anticipating the impacts of this, the IMF predicts worldwide economic growth of 2.8 percent in 2023, a 0.5 percentage point decline from its initial forecast in January 2023.
Beyond this news, the Legislative Yuan's Finance Committee and Economics Committee commenced a joint evaluation of the Executive Yuan's draft special act aimed at enhancing economic, social, and national security resilience in response to US tariffs and other challenges. Premier Cho Jung-tai expressed delight at this collaboration, hoping for a smooth approval process.
Democratic Progressive Party Legislator Su Chiao-hui reported that the bill had been added to the schedule and would be discussed as early as next week, subject to the absence of opposition party vetoes or review requests [3]. A swift review process could be possible under these circumstances.
Sources:1. IMF (2023). World Economic Outlook. Retrieved from https://www.imf.org/en/Publications/WEO/Issues/2023/03/21/world-economic-outlook- Update-March-20232. CNA (2023, March 16). Tariff negotiations with US won't compromise national interests, Lai tells business leaders. Retrieved from https://www.cna.com.tw/news/acn11535427993. CNA (2023, March 16). DPP legislator: Talks on special act to address US tariffs could start next week. Retrieved from https://www.cna.com.tw/news/acn11535430074. CNA (2023, February 28). Taiwan hopeful of concluding trade agreements with US soon, top trade official says. Retrieved from https://www.cna.com.tw/news/acn11533247545. CNA (2023, March 15). Taiwan to accelerate arms procurements under "Peace through Strength" strategy: sources. Retrieved from https://www.cna.com.tw/news/acn1153537833
- President Lai of Taiwan pledged undying loyalty to safeguarding national interests and fostering industrial development, including small and micro enterprises, which employ over 9 million people in the country.
- Policymakers are working together to reset the industry, finance, and business sectors, anticipating the impacts of tariffs imposed by US policymakers on Taiwan's economy.
- Taiwan's policymakers have increased the budget for the export supply chain relief package to NT$93 billion (US$2.99 billion), with the aim of alleviating the financial burden on businesses affected by tariffs.
- Millions of people employed by businesses in Taiwan are being prioritized by policymakers, who are striving to maintain a stable power supply and foster a transparent government in New Taipei City to facilitate dialogue with industry aficionados.
- The IMF has forecasted that Taiwan's economy will expand by 2.9 percent in 2023, a growth that is expected to continue despite the disruptions imposed by sweeping tariffs in the global trade system as noted in the IMF's latest general news report.
