AIT-TECRO Subcabinet Economic Dialogue July 16, 1999 Press Statement

BG9909E | Date: 1999-07-19

The fourth Subcabinet Level Economic Dialogue sponsored by the American Institute in Taipei (AIT) and the Taipei Economic and Cultural Representative Office (TECRO) was held today, July 16, 1999. Representatives of the two sides met to exchange views on a broad range of bilateral and regional economic issues.

。 We discussed trends and developments in both the economies of the United States and
Taiwan as well as the outlook for Asia. The U.S. economy continues to move ahead with
strong growth, continued job creation, and low inflation. In Asia, the economies most
severely affected by the financial crisis are showing signs of recovery and growth. What is
crucial for stability and growth is continued implementation of reforms that address the
structural problems that contributed to the crisis. Taiwan's economy has proven relatively
resilient in the face of regional financial crisis. Stronger domestic demand-oriented
macroeconomic policies are in Taiwan's interest as well as those of the Asia region more
generally.

。We also discussed a range of international financial issues to reform and strengthen the
international financial architecture, as well as financial issues in the United States and
Taiwan. In Taiwan, continued progress in strengthening the financial sector, including
improving transparency of operations, banking supervision, and the regulatory framework,
are key to sustaining market confidence.

。We are pleased that formal negotiations on a Customs Mutual Assistance Agreement will
begin soon, with the aim for completion by the fall of 1999.

。The U.S. side was pleased that Taiwan announced new anti-piracy regulations that would
significantly tighten enforcement of the requirement for SID codes on all computer discs
(CDs). The United States also welcomed Taiwan's agreement that mask ROM computer chips
produced in Taiwan would bear identifying marks to combat the use of counterfeit software.

。We reviewed a number of bilateral trade, investment, and financial issues, including :

。The need for further progress on market access in Taiwan for medical devices and
pharmaceuticals industry, both with respect to reimbursement pricing and product approvals.

。Further efforts to facilitate timely regulatory approval of investment funds offered by foreign
financial institutions and to move forward a disclosure-based registration system for securities
market products.

。The principles which should govern global electronic commerce.

。The need for greater competition in the Taiwan cable TV market.

。Taiwan's telecommunications liberalization process and the need to assure that Taiwan can
take full advantage of the most modern telecommunications services available from U.S.
companies. In a related discussion, Taiwan assured the United States that a fully competitive
cable television market would be maintained.

。The U.S. side looks forward to steps to better protect intellectual property rights.

This Subcabinet Level Economic Dialogue underscores the strong economic and commercial ties between the people of the United States and Taiwan.