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Ma needs to lead
better, AmCham says
TOUGH ROAD: The trade body¡¦s white paper
underlined the need to win public support for reform, but warned of policies
that undermine national competitiveness
By Crystal Hsu / Staff reporter
President Ma Ying-jeou (°¨^¤E) needs to improve his leadership acumen and
communication prowess to win public support for major government reforms, the
American Chamber of Commerce (AmCham) in Taipei said yesterday.
The call from AmCham came after the Ma administration¡¦s efforts to ease import
restrictions on US beef containing residues of ractopamine and introduce a
capital gains tax on stock investments encountered stiff opposition from
lawmakers and the public alike.
¡§The road ahead is very tough ... There is no room for indecision or
hesitation,¡¨ AmCham chairman Bill Wiseman told a media briefing on the release
of its annual white paper.
Ma, Premier Sean Chen and the Cabinet need to garner the support of civil
servants, lawmakers and the public to reconcile opposing interests in the reform
process, Wiseman said.
The beef dispute raises concerns over the administration¡¦s credibility, Wiseman
said.
Taiwan signed an agreement with the US in October 2009 to open the door to
bone-in beef, ground beef and other products from cattle under 30 months old.
However, two months later, the legislature revised the regulations, halting
imports of ground beef and internal organs from the US, prompting Washington to
accuse Taipei of violating the agreement and suspend talks on the Trade and
Investment Framework Agreement (TIFA).
AmCham urged the government to seek a resolution to the dispute over US beef
imports, resume TIFA talks and pursue stronger trade and investment ties with
the US and other trade partners, including participation in the Trans-Pacific
Partnership.
AmCham said it supported the government¡¦s decision to raise electricity rates to
encourage conservation, but recommended a restudy of what it called overly
ambitious carbon reduction targets and a decision not to extend the lifecycles
of existing nuclear power facilities.
¡§Simultaneously carrying out the two policies means high costs that undercut
Taiwan¡¦s competitiveness,¡¨ Wiseman said.
He shied away from comments on the capital gains tax plan, but said policy
uncertainty would have a negative impact on financial markets and the sectors
linked to their performance.
The latest white paper pressed for a more favorable environment for cultivating
startup companies and reduction of the withholding tax on foreign entities
supplying services and intellectual property to Taiwan.
The paper also suggested restoring the tax exemption on royalties for foreign
patents and know-how utilized by Taiwanese companies and increasing incentives
for the private sector to engage in research and development.
The proposed tax cuts would help Taiwan overcome the innovation gap that
constrains many of the nation¡¦s industrial sectors, Wiseman said.
AmCham also recommended stronger laws against the misappropriation of trade
secrets that takes the form of personnel recruitment by rival companies, Wiseman
said.
The paper urged the government to end job protectionism, which it said has led
to a brain drain and uncompetitive wage levels.
Policymakers should lower personal income tax rates to help attract foreign
talent and streamline immigration procedures for bringing Chinese professionals
and qualified hospitality industry workers to Taiwan, Wiseman said.
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