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TAIWAN, PROVINCE OF CHINA: Textile, garment industries will suffer due to US-Korea FTA

TAIPEI: The US-South Korean free trade agreement (FTA) is expected to wipe out 2 billion US dollars from Taiwan-US trade and cause Taiwan to lose 20,000 jobs as per the estimates of Economics Ministry.

South Korea and Taiwan are both main trading partners of the US. 

Taiwan will affected more as it exports 2 billion US dollars worth  to the US or 5 per cent of Taiwan's total export.

Taiwan's traditional industries - textile, garment, bicycle, plastics and rubber shoes will be the biggest victims.

The US-South Korean FTA could hurt US investment in Taiwan as there would be greater incentives for US firms to invest in South Korea.

Taiwan should  speed up FTA talks with the US to avoid Taiwan's being marginalized by foreign countries and regional free- trade zones.

Taiwan's economy relies on export and the US is Taiwan's third- largest trading partner after China and Japan.

Taiwan wants to sign an FTA with the US, but Washington has been reluctant to sign it for fear of angering China, which sees Taiwan as its breakaway province.

Taiwan is recognized by only 24, mostly small, nations. So far Taiwan has only signed FTAs with Panama, Guatemala, Nicaragua, El Salvador and Honduras, which have diplomatic ties with Taipei.

Source: Agencies • News Courtesy: BharatTextile.com