Responding to WTO Trade Deregulation and Boosting Farmers' Incomes
- Adjusting Administration for the import of Agricultural Products
- Drafting Short-term Price Stabilization Measures and Providing Assistance in Cases of Import Damage
- Implementing Industry Structure Adjustment Measures
- Expanding Export Markets for Agricultural Products
The COA has continued to implement response measures to minimize the impact on the agricultural sector after ROC’s accession to the WTO on 1st January 1992. These measures involve the balance of supply and demand, price stabilization programs, and agricultural structure reformation. The ROC has substituted the entire NTMs consistence with WTO agriculture Agreement since 1st Janurary 1992. The Tariff Rate Quota (TRQ) has been used for 22 items of sensitive products such as peanuts, garlic, poultry, liquid milk etc. Competitive measures and WTO consistent practices have been adopted. For rice and rice products, in order to obtain the well protection and transition to meet the challenge of liberalization, the TRQ has been replaced to import quota system since 1st January 1993.
The COA is actively consulting with other government agencies about the regimes related TRQ in order to strengthen the administrations, to maintain well-ordered for the import of sensitive agricultural products, as well as to fulfill the commitment of WTO accession. The revised Agricultural Development Statute announced on February 7, 2003 suspends the restrictions on government borrowing in the Public Debt Act and explicitly specifies that the Fund of Redressing Damage to Farmers by Agricultural Import shall be increased to NT$100 billion within three years; a supplementary budget of NT$25 billion was drafted for that purpose in 2003.
Responding to the impact of imported agricultural products on domestic prices after WTO accession, the COA has devised short-term price stabilization measures for 20 sensitive agricultural products, including rice, coconuts, Wentan pomelos, garlic, and hogs. In accordance with these measures, the COA implements a variety of price stabilization actions, including sales promotions, the purchase, processing, and refrigeration of products, the provision of low-interest loans, and the plowing under of crops and abandonment of orchards, whenever product prices fall below triggering thresholds. Thresholds levels were eased in 2003. Price stabilization measures were implemented for rice, coconuts, bananas, oriental pears, peanuts, mackerel, and carangid during the year in an effort to safeguard farmers' and fishermen's incomes, and the COA also purchased surplus grain of second rice crop.
The COA accepts applications for import damage redress from farmers' groups in accordance with the Rules for Redressing Damage to Farmers Caused by Agricultural Imports. When giant bamboo shoots used as a raw material for processing were damaged by imports in 2003, the Agricultural Product Import Damage Redress Fund approved a relief package at its conference in late October, and the COA helped producing area groups purchase giant bamboo shoots for processing, easing injury to local farmers.
The COA used the Agricultural Product Import Damage Assistance Fund to "adjust industry structure and implement preventive measures." Structural adjustments in the hog raising, poultry, aquaculture, and other related industries improved competitiveness. To further reduce the impact of WTO accession on Taiwan's agriculture, the COA also implemented agricultural labor adjustment training, plant and animal disease control technology, and pest and disease management programs.
To help exporters, food manufacturers, and farmers' groups expand export markets for agricultural products, COA sent groups to participate in international food shows in Japan and Germany in 2003, held "Taiwan Food Festival" as supermarket sales promotions in Japan, Hong Kong, Singapore, and China, and held "Taiwan Fruit Festival" promotions in Shanghai, Canada, San Francisco, Los Angeles, Singapore, and Malaysia. In addition, COA strengthened sales promotions for mangoes, guavas, oranges, and ponkans during the peak harvest seasons. Taiwan's agricultural product exports totaled US$3.24 billion in 2003, and grew by 2.83% over the previous year. Fruit exports grew by 30.20%, flower exports by 11.44%, fish and seafood product exports grew by 6.97%, and forestry product exports grew by 13.05%. These results show that the export markets for Taiwan's agricultural products have been successfully expanded.
