1. Economic Integration and Prospective of Mexico-Taiwan Trade and Investment Relationship Dr. Roy LEE Deputy Executive Director Taiwan WTO and RTA Center, CIER 1

2. APEC has been a hotspot in economic integration WTO Membership in PTAs in force (2010, notified and non-notified PTAs, by country) 2

3. Virtually all of the “Most active” WTO members are APEC economies 3

4. Some recent developments in Economic integration in the APEC region Japan recently joining the 11-country Trans Pacific Partnership Agreement (TPP) Accounts for over 40% of world’s GDP The ASEAN+6 based Regional Comprehensive Economic Partnership (RCEP) starts negotiation in May 2013 Accounts for 45% of world’s population, 1/3 of GDP The CJK (China-Japan-Korea) FTA also kicked off Taiwan-China Services Trade Agreement due to conclude by June Mexico is leading the development of the Pacific Alliance 4

5. The opportunities for enhancing Mexico --Taiwan trade and investment Mexico is already Taiwan’s gateway to the NAFTA and Latin-America’s markets Currently Mexico’s 9 th largest trading partner, and 4 th in the Asian region, after China, Japan and Korea. Investment over USD 600 million (Acer, Asus, Foxxcon…) Taiwan could be serving as Mexico’s gateway to China and the Asia Pacific’s area Taiwan’s strong position in the Asia Pacific supply chain The cross-strait Economic Cooperation Framework Agreement (ECFA) with China signed in 2010, followed by Bilateral Investment Agreement in 2012 Services trade agreement in 2013 Likely to be the most preferential market access treatment to China 5

6. Taiwan is also actively seeking participating in the Integration process Joining the TPP and RCEP before 2020 Domestic liberalization and reform initiatives starts to reduce trade and investment hurdles Refining relationship with mainland China Enhancing trade and investment relationship with trading partners Mexico will be a key target The most important trading partner in the Latin America and in the world Strong economic growth and outlook Population and domestic demand Access to NAFTA 6

7. Integration is more than trade agreements For Mexico-Taiwan, increase understanding, awareness and confidence: the most valuable and critical factors Enhance mutual industrial collaborations Stronger linkage to the Asia Pacific Production Network Access to major markets at the two side of the Pacific 7

8. Areas of cooperation in the future 8

9. Taiwan has been focusing on High-Tech ICT Industries Etched into the back of every iPhone are the words “Designed by Apple in California. Assembled in China.” Apple might as well have added “Made in Taiwan.” 9

10. Taiwan’s role in the global ICT supply/value chain: the case of Notebook Computers 10 Source: Based on information provided by MIC, III (2009).

11. The new Dimension: Taiwan’s Development Strategies towards 2020 Hub of International Network Hub of International Network Value Initiator and Champion Value Initiator and Champion Pioneer of New Life Style Pioneer of New Life Style Innovator of Soft Economy Innovator of Soft Economy Economic develop- ment Integration Differentiation Internationalization: Manufacturing-centric and outward expansion Local momentum: Intangible asset- driven with local cultivation Good combination of industrial and non-industrial innovative ingredients Breakthrough via niches Sustain- able environ- ment Social equity 11

12. Taiwan’s New and Emerging Industries Six Emerging Industries Biotechnology Project Vanguard for Excellence in Tourism Green Energy Health Care Boutique Agriculture and Health Creative Culture Industry Four Intelligent Industries Cloud computing Intelligent green building Smart electric vehicle Invention & patent industrialization industries Ten Key Service Industries The globalization of Taiwanese cuisine International & cross-strait medicine Music and digital content The MICE industry International logistics Innovative industries Chinese-language e-commerce, higher education Fund-raising platform for high-tech and innovative industries Re-structuring of Taiwan industries from manufacturing intensive to soft economy development; such as, System Service, and Smart Industries. 12

13. Main areas for Mexico-Taiwan networking Manufacturing (supply and value chain) Electronics ICT and smart devices Photoelectric Biotech (pharmaceuticals) Solar and new energies Auto parts Hi-tech textile Petrochemical Services targeting at the AP and China region Banking Tourism Communications and cloud computing Healthcare 13 Also: Agricultural technologies

14. Cooperation at G-G level Customs cooperation and trade facilitation Small & Medium Enterprises (SME) development and facilitation Agricultural and fishery development R&D facilitaiton (Wireless) Broadband development (e.g. Wimax) 14

15. Thank You for Your Attention Roy.lee@cier.edu.tw 15