Dear All, Whilst on the Trans-Pacific Partnership, the US Assistant Secretary Jose Fernandez made some remarks which are interesting. Worthwhile noting is the inclusion of Mexico, Canada and Japan. Here you go: Strengthening the U.S.-Taiwan Economic Relationship Remarks Jose W. Fernandez Assistant Secretary, Bureau of Economic and Business Affairs American Chamber of Commerce Taipei, Taiwan August 5, 2012 ------------------------------ *I. **Introduction* Thank you. This is my first trip to Taiwan and I continue to marvel at the numerous cultural and economic ties that bind our people. One of our ties was illustrated to me as I read the paper this morning. I enjoyed seeing that Jeremy Lin’s visit took top billing in the newspaper, and the meeting between President Ma and I drew a little less attention. Let me give you just one example that is illustrative of the larger U.S. – Taiwan relationship. It is a great American tradition to start new companies in a home garage. In an Irvine, California garage in 1988 Linksys was born. The creators of this now ubiquitous line of home computer networking devices were Taiwan immigrants Janie and Victor Tsao. At the time they founded Linksys, they were also working as consultants specializing in pairing U.S. technology vendors with manufacturers in Taiwan. That pairing has become emblematic of the U.S. – Taiwan economic relationship. The latest numbers show that two-way trade between the United States and Taiwan in electrical machinery hovers around $23 billion per year. *II. **Strategic Rebalancing Toward Asia* While Taiwan has been exemplary as one of the so-called “Asian Tigers,” I want to put our economic relationship with Taiwan in the larger Asian context before discussing Taiwan specifically. That larger context is our work on the Trans Pacific Partnership, and the Select USA initiative. As you know, the global economic crisis of the past few years has pushed us in the United States to pursue our own economic recovery. This is a two-sided coin, with an eye toward regional trade liberalization on one side, and concerted efforts to attract more foreign investment to the United States on the other. At all levels of the U.S. government, we are broadening and deepening our economic relationships throughout the Asia Pacific region. We are acutely aware that reinvigorating our economy at home goes hand in hand with partnering on economic growth abroad. The United States has long been involved in developments in the Asia Pacific region. We are proud that our contributions to regional security here helped create the conditions that brought more people out of poverty faster than anywhere else in history. That engagement continues today and the futures of the United States and the Asia Pacific are inextricably linked. As Secretary of State Hillary Clinton has highlighted, we are not just a diplomatic or military power here. We are an economic force as well. In 2010 alone, our exports to the Pacific Rim were over $320 billion, supporting 850,000 American jobs. But our work is not finished. One of our country’s great challenges in this century will be to establish a stronger network of trade links and practices around the Pacific Rim. Our recently enacted Free Trade Agreements with South Korea and Colombia, and our commitment to the Trans-Pacific Partnership, are clear demonstrations that we are here to stay. I am proud to note that the American Institute in Taiwan (AIT) has been a very active promoter of these efforts. In fact, they have been so successful in working to promote America’s economic relationship with Taiwan that I was able to personally congratulate the former Director, Bill Stanton, on winning my award for export promotion in 2011. He also received the State Department’s coveted Cobb award for global trade promotion efforts. That’s two awards in the same year to one man, something that doesn’t happen very often in the State Department. The AIT team in Taipei and Kaohsiung (“GOW shung”) is carrying on that tradition and I expect great achievements from the incoming leadership team here in Taipei. All of these individual efforts fit into our larger work toward regional trade liberalization. Also supporting this effort is our commitment to the Trans-Pacific Partnership. Looking ahead to the next generation of trade agreements, we are aiming at crafting an agreement that addresses new and emerging trade issues and challenges. The Trans-Pacific Partnership, or TPP, includes the United States, along with Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam. It is a high-standard, broad-based regional agreement. We see the TPP as the most credible pathway to broader Asia-Pacific regional economic integration. The agreement will include core issues traditionally found in trade agreements, such as industrial goods, agriculture, and textiles as well as rules on intellectual property, technical barriers to trade, labor, and the environment. But it will also address cross-cutting issues not previously found in trade agreements, such as making the regulatory systems of TPP countries more compatible so U.S. companies can operate more seamlessly in TPP markets. It will also help innovative, job-creating small- and medium-sized enterprises participate more actively in international trade. Equally important is addressing new emerging trade issues, such as trade and investment in innovative products and services, and ensuring that state-owned enterprises compete fairly with private companies and do not distort competition in ways that put U.S. companies and workers at a disadvantage. The United States is participating in the TPP as the best vehicle to advance our economic interests and to promote economic growth and development in the critical Asia-Pacific region. Expanding U.S. exports is critical to our economic recovery and to the creation and retention of high-quality jobs in the United States. With its rapid growth and large markets, there is no region with which expanding our trade is more vital than the Asia Pacific. The TPP countries recently announced the addition of Mexico and Canada to the negotiations. Late last year Japan also formally expressed interest in beginning consultations with TPP member countries with a view to possibly joining the negotiations. Candidate countries for TPP must demonstrate through their actions and through bilateral consultations with each TPP country their readiness to meet the standards and objectives of the agreement. Once those bilateral processes are concluded, the current TPP partners must decide by consensus before a new member can participate. In short, we are excited by the possibilities created in the Asia-Pacific by the TPP, and are working very hard to make it a reality by the end of this year. Let’s move on to another program we just started, Select USA. So one side of the coin of economic recovery is expanding opportunities for U.S. companies to do business effectively abroad. The other side of that coin is the work that we do at home to encourage investment in the United States. The United States consistently ranks at the top of most major indicators for its attractive business and investment climate. In fact, from 2006 through 2010, the United States received more FDI than any other country. The FDI flow into the United States in 2010 - $228 billion - was more than double the flow into any other country in the world, and despite economic difficulties of the time, 49 percent greater than the FDI flow into the United States in 2009. At the same time, total Taiwan direct investment flow in the United States was over $5 billion in 2010, an increase of 14.7% from 2009. Under a program called SelectUSA, the U.S. Departments of Commerce and State engage partners around the world, as I am doing here, to promote investment into our dynamic economy. SelectUSA showcases how the United States is the world’s premier business location and provides easy access to federal-level programs and services related to business investment. Why do I say that the United States is the world’s premier business location? Because we are the world’s largest economy; we consistently rank at the top of most major indicators for our attractive business and investment climate; our own investment in research and development makes us the world’s center for innovation; and our leadership in protecting intellectual property with a transparent and predictable legal system makes doing business in the U.S. both cost-efficient and secure. Also, one of the strongest reasons will always be the quality of our higher education, particularly in science and engineering. Taiwan people in the United States are well aware of this: 80 percent have achieved some level of higher education, particularly in these fields and in medicine. I understand that the U.S. regulatory environment can be daunting to some investors, but through our hardworking representatives at the American Institute in Taiwan, and SelectUSA and other U.S. government partners back in Washington, we can help connect investors with the business counseling and training they may need to comply with applicable regulations. We can also direct you to the different states’ economic development agencies, making sure you get connected to the right partners for your investment selection process. *III. **U. S. – Taiwan Economic Relations* Where does Taiwan figure into this picture? How can Taiwan partner with us and benefit from this wealth creation? Today, Taiwan is our 10th largest trading partner and our 15th largest export market. It would surprise many people but the United States actually trades more with Taiwan than with France; and Taiwan-U.S. trade is at near the same level as India-U.S. bilateral trade. The United States is Taiwan’s largest foreign investor, and Taiwan companies have made significant investments in the United States. Historically, the United States has been the strongest champion of Taiwan’s participation in global trade bodies such as the World Trade Organization and the APEC forum. Our strong economic relationship covers more than six decades. Taiwan has been an invaluable partner in influencing others to embrace reform and strive for economic growth. In recent years, however, this immensely valuable relationship has hit some bumps in the road that hinder our partnership and progress. We can’t afford these bumps and need to make sure that they do not detract from efforts to make full use of our potential. We were pleased to see that the Legislative Yuan recently took action that will clear the path for Taiwan to establish a maximum residue limit for ractopamine in beef, eliminating a serious impediment to U.S. beef imports. U.S. trade agencies will be monitoring implementation of the regulatory measures needed to allow U.S. beef imports to resume. These steps will be important in helping to rebuild confidence in our bilateral trade relationship. We know from our own experience that adhering to bilateral and multilateral trade commitments is not always easy, but it is essential to maintaining the credibility that serves as the foundation of what has long been a positive, constructive relationship between trading partners. Of course our bilateral economic relationship goes well beyond this particular issue and we have continued to engage Taiwan at the working level and via our capable colleagues at AIT on the full range of important bilateral trade and investment issues. For example, the United States worked for many years in support of Taiwan’s candidacy to join the WTO Government Procurement Agreement. These joint efforts were rewarded when Taiwan acceded to the Agreement in 2009. Taiwan has already made many reforms to its procurement practices, and we stand ready to assist as Taiwan continues to harmonize its measures with global best practices with regard to transparency, contract terms, and licensing. Taiwan has made tremendous progress over the years in improving intellectual property rights protection and enforcement, and the United States has carried out significant bilateral cooperation activities on intellectual property rights—IPR—issues. Still, challenges remain, including with regard to online infringement and the theft of trade secrets. During my time here in Taiwan I have visited companies that have had their technology stolen and heard their stories. For U.S. firms the protection of IPR is so vital because so many of our exports derive from IPR. A recent study estimated that 75% of U.S. exports involve IPR. Taiwan aspires to be an economy based on innovation, and together our unceasing efforts will ensure that Taiwan’s IPR enforcement regime meets the highest standards. Improved protection of trade secrets in Taiwan will help both foreign and domestic firms be competitive and innovative in today’s knowledge-based economy. The bottom line: we have made major progress over the years on many critical issues when both sides have been prepared to work together. The United States sincerely desires a reinvigorated trade relationship with Taiwan. It’s already generally good, but we can do better. Like the United States, Taiwan is also pursuing trade liberalization. We understand the Ma Administration has indicated a desire to be considered for the TPP in eight years. As a gold standard for future trade agreements in the region, the TPP requires members to embrace ambitious and comprehensive liberalization and open their markets to competition. We commend President Ma for recognizing the importance of trade integration, and for his expressed determination to push forward liberalization measures that would help Taiwan make its case as a possible candidate for future trade agreements. Change will not be easy, but the benefits of liberalization are clear: stronger and more competitive firms, better services, wider availability of products at lower prices, greater efficiency, and smoother integration into the world marketplace. More comprehensive economic liberalization will be an essential component for securing Taiwan's economic future. Real liberalization will demonstrate Taiwan's commitment to trade integration and potential inclusion in various trade arrangements. This includes comprehensive, bilateral FTAs—such as Taiwan's ongoing negotiations with Singapore—which is an important first step. As Taiwan's leaders implement meaningful market liberalization measures and pursue new trade agreements, firm resolve and commitment to free market principles as a responsible WTO member are essential attributes to live by. We look forward to deepening our trade and economic interaction with Taiwan. We will support Taiwan as it embraces these fundamental prerequisites to effective and meaningful trade integration. Everyone in this room is an important element of what we hope to do. *IV. **Next Steps & Conclusion* Just as Janie and Victor Tsao understood when they founded Linksys nearly 25 years ago, trade between Taiwan and the United States is vital to the prosperity of both. The United States and Taiwan have a long and positive history of cooperation and many shared interests in the region. We are hopeful that the positive recent steps Taiwan has taken to address the beef issue are a demonstration of the sustained commitment that will be needed to reenergize our bilateral trade dialogue. To be sure, Taiwan, like any democracy, will face tough choices in order to live up to its international obligations and to put its long-term economic interests above domestic politics. Taiwan is a part of the Asia-Pacific region’s economic future. We look forward to working with Taiwan as it builds cooperative and credible partnerships throughout the region, including with the United States.

Yes, Carlton. He is saying that the TPP is a precursor to Free Trade Agreements. Taiwan is a bigger market that France as far as US relations goes and you can see the leveraging, tradeoffs taking place. Some may ask and what has this got to do with "the price of fish in the market" [Pacific speak for..how does it affect the Internet?]. Well it not new that the US has always maintained that the Internet should be a tax free zone as per the US Congress's Tax Freedom Act 1998 (*authored by **Representative Christopher Cox and Senator Ron Wyden and signed into law on October 21 1998 by then President Clinton*) which following expiry continued to be reauthorised and it most recent reauthorisation (legal speak for extension) was in October 2007 where this has been extended till 2014. The OECD and the EU have been holding the opposite view (Kurbaliha,J. 2010) - see their Ottawa Principles where they find that there is no difference between traditional and e taxation that would require special regulations. It followed that in 2003 when the EU introduced a regulation requesting non EU e commerce companies to pay value added tax (VAT) if they sold goods within the EU. The main driver or motivation was that non-EU companies (many of whom are US companies) had an edge over European companies. See one of the Reports - http://www.oecd.org/tax/taxadministration/20499630.pdf The point of controversy is also location (US is pro-origin) and destination (EU is pro-destination) when assessing tarriffs so when take for example as is with Trade. This is why MNCs (multinational corporations) are careful and selective of jurisdictions in which they plonk their servers in or offices in because it has to make sense to the bottom line. In my view nothing wrong with the bottom line as long as people behave responsibly and fairly so that global public interest is protected. The only problem is that history and current trends show that the self regulatory model does'nt work. [question for us is finding that place of balance where we can all win]. Why is South Korea so important in the mix? Well aside from the Samsung v Apple and Apple v Samsung circus, South Korea also leads the world in terms of being number 1 in the IDI ranking but if you peel the layers, volume and content are massive triggers as far as generating revenue. Ask any ISP or MNC...If taxation were introduced globally, the apple cart would be upset. Of course, at the end of the day, the reality is that the EU is in financial crisis and it should not come as a shock as to what their position will be in terms of "enhancing stability". The fact that even the IMF is struggling to find viable solutions shows that hourglass is in motion. Lesson to be learnt from this is that nothing is ever what it seems, not what the media says and wisdom demands that we be aware of our environment. @Carlton, the bigger slice ain't coming to us Best Regards, Sala On Tue, Sep 4, 2012 at 6:36 AM, Carlton Samuels <carlton.samuels@gmail.com>wrote:

Thanks for this Sala. The gentleman is telling Taiwan 'let not your heart be troubled' or become too alarmed by the 're-balancing' act; moving from bi-lateral trading relationship to a more multi-lateral profile that is the TPP.

The message objective: TPP is intended to create a bigger pie. And if you wait and be of good cheer, a bigger slice comes to you.

- Carlton

============================== Carlton A Samuels Mobile: 876-818-1799 *Strategy, Planning, Governance, Assessment & Turnaround* =============================

On Fri, Aug 31, 2012 at 2:23 PM, Salanieta T. Tamanikaiwaimaro < salanieta.tamanikaiwaimaro@gmail.com> wrote:

...

Dear All,

Whilst on the Trans-Pacific Partnership, the US Assistant Secretary Jose Fernandez made some remarks which are interesting. Worthwhile noting is the inclusion of Mexico, Canada and Japan.

Here you go: Strengthening the U.S.-Taiwan Economic Relationship

Remarks Jose W. Fernandez Assistant Secretary, Bureau of Economic and Business Affairs American Chamber of Commerce Taipei, Taiwan August 5, 2012

------------------------------

*I. **Introduction*

Thank you. This is my first trip to Taiwan and I continue to marvel at the numerous cultural and economic ties that bind our people. One of our ties was illustrated to me as I read the paper this morning. I enjoyed seeing that Jeremy Lin’s visit took top billing in the newspaper, and the meeting between President Ma and I drew a little less attention.

Let me give you just one example that is illustrative of the larger U.S. – Taiwan relationship. It is a great American tradition to start new companies in a home garage. In an Irvine, California garage in 1988 Linksys was born. The creators of this now ubiquitous line of home computer networking devices were Taiwan immigrants Janie and Victor Tsao. At the time they founded Linksys, they were also working as consultants specializing in pairing U.S. technology vendors with manufacturers in Taiwan. That pairing has become emblematic of the U.S. – Taiwan economic relationship. The latest numbers show that two-way trade between the United States and Taiwan in electrical machinery hovers around $23 billion per year.

*II. **Strategic Rebalancing Toward Asia*

While Taiwan has been exemplary as one of the so-called “Asian Tigers,” I want to put our economic relationship with Taiwan in the larger Asian context before discussing Taiwan specifically. That larger context is our work on the Trans Pacific Partnership, and the Select USA initiative.

As you know, the global economic crisis of the past few years has pushed us in the United States to pursue our own economic recovery. This is a two-sided coin, with an eye toward regional trade liberalization on one side, and concerted efforts to attract more foreign investment to the United States on the other. At all levels of the U.S. government, we are broadening and deepening our economic relationships throughout the Asia Pacific region. We are acutely aware that reinvigorating our economy at home goes hand in hand with partnering on economic growth abroad.

The United States has long been involved in developments in the Asia Pacific region. We are proud that our contributions to regional security here helped create the conditions that brought more people out of poverty faster than anywhere else in history. That engagement continues today and the futures of the United States and the Asia Pacific are inextricably linked. As Secretary of State Hillary Clinton has highlighted, we are not just a diplomatic or military power here. We are an economic force as well. In 2010 alone, our exports to the Pacific Rim were over $320 billion, supporting 850,000 American jobs.

But our work is not finished. One of our country’s great challenges in this century will be to establish a stronger network of trade links and practices around the Pacific Rim. Our recently enacted Free Trade Agreements with South Korea and Colombia, and our commitment to the Trans-Pacific Partnership, are clear demonstrations that we are here to stay.

I am proud to note that the American Institute in Taiwan (AIT) has been a very active promoter of these efforts. In fact, they have been so successful in working to promote America’s economic relationship with Taiwan that I was able to personally congratulate the former Director, Bill Stanton, on winning my award for export promotion in 2011. He also received the State Department’s coveted Cobb award for global trade promotion efforts. That’s two awards in the same year to one man, something that doesn’t happen very often in the State Department. The AIT team in Taipei and Kaohsiung (“GOW shung”) is carrying on that tradition and I expect great achievements from the incoming leadership team here in Taipei.

All of these individual efforts fit into our larger work toward regional trade liberalization. Also supporting this effort is our commitment to the Trans-Pacific Partnership.

Looking ahead to the next generation of trade agreements, we are aiming at crafting an agreement that addresses new and emerging trade issues and challenges. The Trans-Pacific Partnership, or TPP, includes the United States, along with Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam. It is a high-standard, broad-based regional agreement. We see the TPP as the most credible pathway to broader Asia-Pacific regional economic integration.

The agreement will include core issues traditionally found in trade agreements, such as industrial goods, agriculture, and textiles as well as rules on intellectual property, technical barriers to trade, labor, and the environment. But it will also address cross-cutting issues not previously found in trade agreements, such as making the regulatory systems of TPP countries more compatible so U.S. companies can operate more seamlessly in TPP markets. It will also help innovative, job-creating small- and medium-sized enterprises participate more actively in international trade. Equally important is addressing new emerging trade issues, such as trade and investment in innovative products and services, and ensuring that state-owned enterprises compete fairly with private companies and do not distort competition in ways that put U.S. companies and workers at a disadvantage.

The United States is participating in the TPP as the best vehicle to advance our economic interests and to promote economic growth and development in the critical Asia-Pacific region. Expanding U.S. exports is critical to our economic recovery and to the creation and retention of high-quality jobs in the United States. With its rapid growth and large markets, there is no region with which expanding our trade is more vital than the Asia Pacific.

The TPP countries recently announced the addition of Mexico and Canada to the negotiations. Late last year Japan also formally expressed interest in beginning consultations with TPP member countries with a view to possibly joining the negotiations. Candidate countries for TPP must demonstrate through their actions and through bilateral consultations with each TPP country their readiness to meet the standards and objectives of the agreement. Once those bilateral processes are concluded, the current TPP partners must decide by consensus before a new member can participate. In short, we are excited by the possibilities created in the Asia-Pacific by the TPP, and are working very hard to make it a reality by the end of this year.

Let’s move on to another program we just started, Select USA. So one side of the coin of economic recovery is expanding opportunities for U.S. companies to do business effectively abroad. The other side of that coin is the work that we do at home to encourage investment in the United States. The United States consistently ranks at the top of most major indicators for its attractive business and investment climate. In fact, from 2006 through 2010, the United States received more FDI than any other country. The FDI flow into the United States in 2010 - $228 billion - was more than double the flow into any other country in the world, and despite economic difficulties of the time, 49 percent greater than the FDI flow into the United States in 2009. At the same time, total Taiwan direct investment flow in the United States was over $5 billion in 2010, an increase of 14.7% from 2009.

Under a program called SelectUSA, the U.S. Departments of Commerce and State engage partners around the world, as I am doing here, to promote investment into our dynamic economy. SelectUSA showcases how the United States is the world’s premier business location and provides easy access to federal-level programs and services related to business investment.

Why do I say that the United States is the world’s premier business location? Because we are the world’s largest economy; we consistently rank at the top of most major indicators for our attractive business and investment climate; our own investment in research and development makes us the world’s center for innovation; and our leadership in protecting intellectual property with a transparent and predictable legal system makes doing business in the U.S. both cost-efficient and secure. Also, one of the strongest reasons will always be the quality of our higher education, particularly in science and engineering. Taiwan people in the United States are well aware of this: 80 percent have achieved some level of higher education, particularly in these fields and in medicine. I understand that the U.S. regulatory environment can be daunting to some investors, but through our hardworking representatives at the American Institute in Taiwan, and SelectUSA and other U.S. government partners back in Washington, we can help connect investors with the business counseling and training they may need to comply with applicable regulations.

We can also direct you to the different states’ economic development agencies, making sure you get connected to the right partners for your investment selection process.

*III. **U. S. – Taiwan Economic Relations*

Where does Taiwan figure into this picture? How can Taiwan partner with us and benefit from this wealth creation? Today, Taiwan is our 10th largest trading partner and our 15th largest export market. It would surprise many people but the United States actually trades more with Taiwan than with France; and Taiwan-U.S. trade is at near the same level as India-U.S. bilateral trade. The United States is Taiwan’s largest foreign investor, and Taiwan companies have made significant investments in the United States. Historically, the United States has been the strongest champion of Taiwan’s participation in global trade bodies such as the World Trade Organization and the APEC forum. Our strong economic relationship covers more than six decades. Taiwan has been an invaluable partner in influencing others to embrace reform and strive for economic growth.

In recent years, however, this immensely valuable relationship has hit some bumps in the road that hinder our partnership and progress. We can’t afford these bumps and need to make sure that they do not detract from efforts to make full use of our potential. We were pleased to see that the Legislative Yuan recently took action that will clear the path for Taiwan to establish a maximum residue limit for ractopamine in beef, eliminating a serious impediment to U.S. beef imports. U.S. trade agencies will be monitoring implementation of the regulatory measures needed to allow U.S. beef imports to resume. These steps will be important in helping to rebuild confidence in our bilateral trade relationship.

We know from our own experience that adhering to bilateral and multilateral trade commitments is not always easy, but it is essential to maintaining the credibility that serves as the foundation of what has long been a positive, constructive relationship between trading partners.

Of course our bilateral economic relationship goes well beyond this particular issue and we have continued to engage Taiwan at the working level and via our capable colleagues at AIT on the full range of important bilateral trade and investment issues. For example, the United States worked for many years in support of Taiwan’s candidacy to join the WTO Government Procurement Agreement. These joint efforts were rewarded when Taiwan acceded to the Agreement in 2009. Taiwan has already made many reforms to its procurement practices, and we stand ready to assist as Taiwan continues to harmonize its measures with global best practices with regard to transparency, contract terms, and licensing.

Taiwan has made tremendous progress over the years in improving intellectual property rights protection and enforcement, and the United States has carried out significant bilateral cooperation activities on intellectual property rights—IPR—issues. Still, challenges remain, including with regard to online infringement and the theft of trade secrets. During my time here in Taiwan I have visited companies that have had their technology stolen and heard their stories. For U.S. firms the protection of IPR is so vital because so many of our exports derive from IPR. A recent study estimated that 75% of U.S. exports involve IPR. Taiwan aspires to be an economy based on innovation, and together our unceasing efforts will ensure that Taiwan’s IPR enforcement regime meets the highest standards. Improved protection of trade secrets in Taiwan will help both foreign and domestic firms be competitive and innovative in today’s knowledge-based economy. The bottom line: we have made major progress over the years on many critical issues when both sides have been prepared to work together. The United States sincerely desires a reinvigorated trade relationship with Taiwan. It’s already generally good, but we can do better.

Like the United States, Taiwan is also pursuing trade liberalization. We understand the Ma Administration has indicated a desire to be considered for the TPP in eight years. As a gold standard for future trade agreements in the region, the TPP requires members to embrace ambitious and comprehensive liberalization and open their markets to competition. We commend President Ma for recognizing the importance of trade integration, and for his expressed determination to push forward liberalization measures that would help Taiwan make its case as a possible candidate for future trade agreements.

Change will not be easy, but the benefits of liberalization are clear: stronger and more competitive firms, better services, wider availability of products at lower prices, greater efficiency, and smoother integration into the world marketplace. More comprehensive economic liberalization will be an essential component for securing Taiwan's economic future. Real liberalization will demonstrate Taiwan's commitment to trade integration and potential inclusion in various trade arrangements. This includes comprehensive, bilateral FTAs—such as Taiwan's ongoing negotiations with Singapore—which is an important first step. As Taiwan's leaders implement meaningful market liberalization measures and pursue new trade agreements, firm resolve and commitment to free market principles as a responsible WTO member are essential attributes to live by. We look forward to deepening our trade and economic interaction with Taiwan. We will support Taiwan as it embraces these fundamental prerequisites to effective and meaningful trade integration. Everyone in this room is an important element of what we hope to do.

*IV. **Next Steps & Conclusion*

Just as Janie and Victor Tsao understood when they founded Linksys nearly 25 years ago, trade between Taiwan and the United States is vital to the prosperity of both. The United States and Taiwan have a long and positive history of cooperation and many shared interests in the region. We are hopeful that the positive recent steps Taiwan has taken to address the beef issue are a demonstration of the sustained commitment that will be needed to reenergize our bilateral trade dialogue. To be sure, Taiwan, like any democracy, will face tough choices in order to live up to its international obligations and to put its long-term economic interests above domestic politics. Taiwan is a part of the Asia-Pacific region’s economic future. We look forward to working with Taiwan as it builds cooperative and credible partnerships throughout the region, including with the United States.

-- Salanieta Tamanikaiwaimaro aka Sala P.O. Box 17862 Suva Fiji Twitter: @SalanietaT Skype:Salanieta.Tamanikaiwaimaro Fiji Cell: +679 998 2851

Hmmm, helluva thing.....wonder what the fellas in South Korea, China and India are thinking?

Korea has signed the FTA with US so may well be on the way to join the negotiation perhaps after Japan's formal participation. India is not a Pacific country geographically but it all depends on interpretation. China has strongly felt that it is being surrounded by this "partnership" net by its long Pacific coast. Although China has expressed its interested in at least observing the negotiation at last APEC summit in November 2011, it was turned down. It is unlikely that China would be welcome in at the APEC summit right now in Russia. Hong

On Sat, Sep 8, 2012 at 3:47 PM, Salanieta T. Tamanikaiwaimaro < salanieta.tamanikaiwaimaro@gmail.com> wrote:

...

The TPP will be worse than the SOPA.

Add this to the EFF link:-

http://www.guardian.co.uk/commentisfree/2012/aug/27/pacific-free-trade-deal ****

** **

** http://www.alternet.org/story/156059/trans-pacific_partnership%3A_under_cove...

This was sent to me by one of the members of the ALS that I am a part of. Pay particular attention to the "NAFTA" on steroids bit. What is also interesting is the news that Russia has just signed an MoU with the US strengthening greater partnership, notwithstanding the support that it got from the US in joining the WTO, You can imagine that if Russia is persuaded to join the TPP then the likelihood that they will receive the relevant traction to widen the circle of the TPP Party/Parade will definitely cause the concerns that was raised by the EFF that was shared to us by Carlton, see: https://www.eff.org/deeplinks/2012/08/tpp-creates-liabilities-isps-and-put-y... to be a reality in the not too distant future. This means ISP liabilities amongst a host of other things.

On another note, Mr Wu Hongbo is the new Under Secretary General for the United Nations Department of Economic and Social Affairs (UNDESA), see: http://www.un.org/en/development/desa/usg/index.shtml

For developing countries, the concept of "free trade" may sound lucrative but the reality is that it only disadvantages one (the loser). There is no such thing as a free lunch. To see why this is relevant to our discussions, I recommend visiting the link that Carlton shared earlier.

I find the US position on this to be schizophrenic because on one end they are proclaiming an open and free internet and taking extraordinary measures to run miles away from any Treaty negotiations (please note that I am not for nor against Treaties, merely thinking critically about the issues) and yet they are going to extraordinary lengths to go around the world by sending their highest political officer to gain momentum for the TPP.

It brings to mind that nations at the end of the day are about interests and "as long as it suits them". I will also hasten to add that there are many citizens in the US who are also wanting greater transparency around the TPP negotiations as it is likely to impact the architecture of the Internet and the rules of the game.

Kind Regards,

Sala

On Thu, Aug 30, 2012 at 11:00 AM, Carlton Samuels < carlton.samuels@gmail.com> wrote:

...

Here's a development you might wish to follow. Some analysts say it is even more dangerous than pernicious ACTA to the public interest. Those countries in the L & CA region with a Pacific littoral may be party to it.

https://www.eff.org/deeplinks/2012/08/tpp-creates-liabilities-isps-and-put-y...

- Carlton

============================== Carlton A Samuels Mobile: 876-818-1799 *Strategy, Planning, Governance, Assessment & Turnaround* ============================= _______________________________________________ APAC-Discuss mailing list APAC-Discuss@atlarge-lists.icann.org https://atlarge-lists.icann.org/mailman/listinfo/apac-discuss

Homepage for the region: http://www.apralo.org

-- Salanieta Tamanikaiwaimaro aka Sala P.O. Box 17862 Suva Fiji

Twitter: @SalanietaT Skype:Salanieta.Tamanikaiwaimaro Fiji Cell: +679 998 2851

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-- Professor Dr. Hong Xue Director of Institute for the Internet Policy & Law (IIPL) Beijing Normal University http://www.iipl.org.cn/ 19 Xin Jie Kou Wai Street Beijing 100875 China

This is why China will never be invited to the TPP Party: Economic, Energy, Agricultural and Trade Issues: Fostering a Rules-Based System in the U.S.-China Economic Relationship<http://www.state.gov/e/eb/rls/rm/2012/197015.htm> 08/29/2012 03:23 PM EDT Fostering a Rules-Based System in the U.S.-China Economic Relationship Remarks Jose W. Fernandez Assistant Secretary, Bureau of Economic and Business Affairs American Chamber of Commerce Hong Kong August 3, 2012 ------------------------------ *I. Introduction and Roadmap* Thank you very much. It’s great to be here today. A long time ago, I wrote a travel article about Hong Kong in a travel magazine that you will be happy to hear is now defunct. Two things stood out to me then, the juxtaposition of Western and Asian cultures in Hong Kong, and the energy that makes my hometown of New York City feel like a country town. While a lot has changed dramatically here since my first visit, these two things have remained constant throughout the decades. Hong Kong is truly Asia’s World City and sits as a symbol of prosperity in a region rich in trade, innovation, and ideas. As Secretary of State Hillary Clinton said here in Hong Kong almost exactly a year ago, “increasingly, economic progress depends on strong diplomatic ties and diplomatic progress depends on strong economic ties.” This is why Hong Kong is so vital. *Its history and geography make it inevitably a bridge between East and West, and its diplomatic and economic importance to the United States cannot be overstated.* It is inspiring how companies here from all around the globe compete in a transparent system, subject to good governance, rule of law, freedom of the press, an independent judiciary, and a vibrant civil society. This open, competitive system has served the U.S.-Hong Kong economic relationship well. There are more than 1,300 U.S.-affiliated companies in Hong Kong, and AmCham Hong Kong is one of the most active chambers in Asia. We are grateful for all the energetic work of the AmCham members here. We very much value your leadership, expertise, and contributions to global economic growth, as well as the role you play in bringing American businesses to Hong Kong and Asia. In no small part because of your efforts, today Hong Kong is the United States’ 10th largest export market for goods. It is also our 7th largest market for agricultural products. In fact, in the past two years, U.S. exports to Hong Kong grew the fastest—at 73 percent—among all of our top 20 export markets. *II. U.S.-Hong Kong Economic Relationship and the Pivot to Asia* Secretary Clinton’s visit here last year and my visit now are part of a broader and deeper economic relationship between the United States and the countries of the Asia-Pacific; a relationship that is key as we in the United States are pursuing our own economic recovery and growth. And as we look to promote recovery and growth at home in the United States, we also realize that we depend on our economic relations abroad. In this part of the world, our involvement is nothing new. The United States has long been deeply engaged in developments in the Asia-Pacific region. Our contributions to regional security have played a role in creating the conditions that brought more people out of poverty faster than anywhere else in history. That engagement continues today. We know that the futures of the United States and the Asia-Pacific are inextricably linked. And as Secretary Clinton highlighted, we are not just a diplomatic or military power here. We are also an economic force. In 2010 alone, our exports to the Pacific Rim were $320 billion, supporting 850,000 American jobs. *III. U.S.-China Economic Relationship* Now we cannot talk about U.S. economic relations with Asia without discussing our economic relationship with China.China’s economic achievement in recent years is remarkable and is justifiably a source of pride as it has lifted hundreds of millions of people out of poverty, urbanized, and modernized. China is returning to the world stage in a big way, with millennia of experience as a global leader behind it. The economic relationship between the United States and China provides significant benefits to both our nations, just as it does to Hong Kong. China has benefitted greatly from its integration into the global, rules-based trading system that the United States championed following the end of World War II. As the world’s second largest and fastest-growing major economy, China also offers huge opportunities for U.S. businesses, workers, farmers, and ranchers. But as we work toward a system that both of our countries can compete in and prosper from, as our futures are ever-more linked, we need to address challenges to our common goals of prosperity and economic growth. We need to agree on the basic rules that apply to all countries in the international commercial arena. For our part, we are committed to expanding opportunities for U.S. companies to export to and do business in China. And this means that our policies pursue four basic objectives that I’d like to talk to you about today. These are (1) a strong commitment to protection and enforcement of intellectual property rights, (2) adherence to the full array of norms that govern international trade and finance, (3) the creation of a level playing field in which all companies can compete under the same rules, and (4) expanding mutual investment. I would like to touch on each of these four tenets individually before closing with the tools we have at our disposal to encourage progress. (1) Intellectual Property Rights Improving the protection and enforcement of intellectual property rights—or IPR—in China remains a top priority for the United States. In fact, I’d say no issue is more fundamental to maintaining a mutually beneficial trade relationship between both our countries, not just the U.S. China’s own innovators and creative industries seek, and would benefit greatly from, stronger IPR protection and enforcement. In addition, a strong intellectual property regime is critical to ensuring that safe products reach both U.S. and Chinese citizens. And of course, strong IPR protection standards and enforcement mechanisms, similar to those we have adopted under the World Trade Organization, are vital to bilateral trade and investment. But leaving aside its importance to international trade generally, IPR observance is also critical to the U.S. economy and our recovery. And that’s why we are so adamant that this is an issue that needs to be addressed. According to a 2010 report on trade, Chinese intellectual property rights infringement and indigenous innovation policies largely block U.S. companies from China’s enormous government procurement opportunities, which I will discuss shortly. In 2009, these policies cost the U.S. economy nearly $50 billion in sales, royalties, or license fees. The report also found that if Chinaraised its intellectual property rights standards to those of the United States, it could translate into well over 900,000 new jobs in U.S. intellectual property intensive firms. As you can see, the stakes for the United States in maintaining a rule-based system for IPR are extremely high. But instead we face an issue that colors our economic relationship and that we need to overcome. Corporate spying or trade secret theft has led to a huge number of losses for U.S. companies operating in China in recent years. Companies doing business in biotechnology, telecommunications, and nanotechnology have had billions of dollars worth of technology stolen from servers and funneled to Chinese companies that use that technology without legal rights. One U.S. company was the victim of Chinese hackers who stole technology that cost $1 billion and 20 years to develop. Another company lost 40 percent of its value in a single day and 84 percent within five months, after theft of its technology came to light. This pattern does not just harm the individual companies; it discourages other companies from doing business in China. Ultimately, it hinders China’s ability to attract valuable technological investment. A related concern for us is the high rates of online piracy, business software theft, and market access barriers that hinder consumers’ purchases of legitimate goods. For example, a recent report from the Business Software Alliance showed that the software piracy rate in China was 77%, at a cost to producers of nearly $9 billion, while in Hong Kong the rate was 43%, which was only slightly above the global average of 42%. We are also very concerned with the continued trend of policies indicating China’s willingness to encourage domestic or “indigenous” innovation at the expense of foreign innovation and technologies. Let’s be clear: piracy is a euphemism for theft, plain and simple. Nevertheless, we also welcome positive steps China has taken in recent years. At last year’s Strategic and Economic Dialogue, for example, China agreed to strengthen its efforts to protect IPR in several areas. One of these was by intensifying efforts to ensure that Chinese government agencies at all levels use legitimate software. We are also very pleased to join China and 45 other countries in the signing of the World Intellectual Property Organization’s Audiovisual Performers Treaty, also known as the Beijing Treaty. This treaty will expand protections to both U.S. and Chinese performers. (2) Norms and Government Procurement A second basic objective of our policy is to insist that China adhere to the full array of norms and standards that govern international trade and finance. This includes fulfilling its commitment to join the WTO Government Procurement Agreement, or GPA. Government procurement represents one of the most rapidly expanding areas of opportunity for traders of goods and services. All around the world, governments are announcing programs to spend tens or even hundreds of billions of dollars on new infrastructure investments. In fact, in many countries the government typically is the biggest single buyer of goods and services, with the value of these government purchases worth, on average, 10 to 15 percent of a country's GDP. So government tenders are big business throughout the world, including the United States. China committed to join the GPA during its accession to the WTO in 2001. It formally initiated negotiations in 2007 and submitted its most recent market access offer in November 2011. In this May’s U.S.-China Strategic and Economic Dialogue, China committed to submit a new and comprehensive revised offer that responds to the requests of all he GPA parties, before the end of the year. The United States and other GPA parties are focused on ensuring that China’s offer is in line with coverage offered by other parties to this agreement. Opening one of the largest and fastest growing procurement markets would provide substantial opportunities for international suppliers, including those from Hong Kong, which is also a GPA party. In short, 11 years after China committed to joining the GPA, the time has come to fulfill that commitment. (3) Insistence on Competitive Neutrality and a Level Playing Field Third, we continue to press China’s state-owned enterprises to act more like commercial enterprises. If China wants to have state-owned enterprises, that is purely China’s own choice. But if those enterprises receive benefits that give them an artificial competitive advantage, then we have concerns, because we believe that the rules of economic engagement should apply equally to all companies, private or state-owned. No company should be given special benefits, such as subsidized export credit, discounted factory inputs like cheaper energy or land, below-market loan rates, or exemption from antitrust laws, unless all companies have access to those benefits. These benefits and preferential treatment distort the playing field for other companies. And why do we care if the playing field is distorted? Because we want companies to win based on better performance, business practices, and innovation, not based on government support. History shows that when companies based on external assistance and not on their own merits, they often have unearned competitive advantages and ultimately this leads to inefficient, bloated, and uncompetitive firms. As Secretary Clinton stated recently, U.S. companies today have the best, most productive workers in the world. They have the best technology, the most talented innovators. And many of them are sitting on large cash reserves. They play in the most competitive markets and win. Yet they are still disadvantaged relative to certain foreign state-owned enterprises, because they have to pay taxes, dividends, rent, get loans at market rates, and still remain competitive in global markets. Our strategy to meet the state capitalism challenge involves a deployment of a robust set of policy tools that will level the playing field and open markets for fair competition. We are working to implement free trade agreements, bilateral investment treaties, and WTO accession commitments. These policies will counter measures abroad that distort markets and limit market access and competition. (4) Investment Finally, mutual investment in both of our countries will allow us to balance the economic interests of what are—and will be for the foreseeable future—the two largest economies in the world. We want U.S. companies to expand their businesses to China and we want Chinese investment in the United States. We made good progress during the U.S.-China Investment Forum in Washington, DC in April, and we hope to continue that trend. The United States consistently ranks at the top of most major indicators for its attractive business and investment climate. The FDI flow into the United States in 2010 was more than double the flow into any other country at nearly $230 billion. This number was nearly 50 percent greater than FDI flow in 2009. In order to continue this promising trend, President Obama launched SelectUSA in January 2011. SelectUSA coordinates government activities in order to complement the activities of our 50 states, which are the primary drivers of economic development, to attract investment to the United States. If you are interested in investing in the United States, we and SelectUSA can direct your queries to the different states’ economic development agencies, making sure you get connected to the right partners for your investment selection process. We see a great opportunity for more investment from China and Hong Kong, which is why the U.S. Government designated both places as top markets for SelectUSA outreach. For example, from 2005 to 2010, China was America’s fastest-growing source of FDI at over 50 percent average growth per year. Meanwhile Hong Kong’s $4.3 billion of FDI in the United States is only slightly less than Mainland China’s $6 billion in FDI. One positive example of Mainland Chineseinvestment was Dalian Wangda Group’s decision in May this year to purchase America’s second-largest movie theater company – AMC theaters – for $2.6 billion. We want to continue this trend, and in that vein, I want to highlight the important Chinese Overseas Investment Summit in Hong Kong on August 22nd and 23rd. In particular, on the afternoon of August 23rd, AmCham and U.S. service providers will have dedicated sessions to discuss the nuts and bolts of investing in the United States. Since I have been in Hong Kong I have heard much about the final point I would like to speak on. It is the Committee on Foreign Investment in the United States, or CFIUS. I often hear the misconception that CFIUS is some all-powerful organization determined to impede any foreign investment. This is obviously not true based on the numbers I just cited. CFIUS is simply an interagency committee of the U.S. government – of which I am a member – authorized to review mergers, acquisitions, and takeovers from foreign companies that could affect the national security of the United States. It does not cover new or greenfield investments in the United States. And by law CFIUS can only look at national security, not economic or other policies, and it must apply the same rules and clearance standards to all investors, regardless of country. Let me repeat, CFIUS only considers national security and does not consider economic or other policies, and it must apply the same rules and clearance standards to all investors, regardless of country. CFIUS regularly clears investments from both private and state-owned Chinese companies, often within a month. All of its rules are public and explained in detail. Let me give a few facts. When a potential business deal is submitted to CFIUS the committee has 30 days to review the case, and can ask for a 45 day extension if needed. Of the thousands of foreign investments into the United States from 2008 to 2010, only 313 deals required CFIUS review. Of those only 16 required any form of mitigation or adjustment to be approved. CFIUS is transparent, limited in scope, and equally applied to all foreign investments. I wish all countries had such a focused and streamlined foreign direct investment process. *IV. Tools For Progress* This is certainly not the first time I am raising these four key issues—intellectual property rights, government procurement, a level playing field, and mutual investment. Fortunately, we have good vehicles for progress through steady and constructive engagement in all of these areas. One of these is the Strategic and Economic Dialogue I alluded to earlier. Our countries recently held the fourth Strategic and Economic Dialogue in Beijing in early May. The U.S. remains committed to a long-term investment in building mutual trust and understanding between China and the United States, and we see the S&ED as an important tool to achieve results. And we need progress because while these problems aren’t new, they can’t continue forever. In May China made key commitments to (1) improving market access and leveling the playing field, (2) improving intellectual property rights enforcement and protection, (3) reducing trade secret misappropriation, and (4) committing to treating IPR owned or developed in the United States the same as IPR owned or developed in China. China also agreed to intensive discussions on the implementation of its commitment that technology transfer is to be decided by firms independently and not to be used by the Chinese government as a pre-condition for market access. We welcome these commitments and look forward to concrete steps in the right direction in the near future. They will go a long way in addressing the issue I’ve just discussed. *V. Conclusion* Using vehicles such as the Strategic and Economic Dialogue, we can work through our differences to strengthen our commonalities. Neither the United States nor China can fulfill its economic potential without the cooperation of the other. We are global partners, and in that partnership, all of you here in Hong Kong are indispensable players. Thank you.

Dear All, Currently the TPP negotiations, the 14th round is being held in Leesburg, Virginia from September 6-15, 2012 . Today is the day allocated for those who have registered to take part in the Stakeholders discussions. You had to register to participate. You can visit: http://www.ustr.gov/tpp to access highlights and overviews and actual FTAs. It has been reported from other news sources that His Excellency B. Obama wants to conclude the TPP by this year's end. There is an interesting article by Gordon Campbell, see: http://www.scoop.co.nz/stories/HL1209/S00040/gordon-campbell-on-apec-and-its... Kind Regards, Sala