The New Southbound Policy is mitigating the impact of coronavirus on Taiwan’s economy and will remain a cornerstone regional engagement and integration measure going forward, according to the Ministry of Economic Affairs July 5.
 
Taiwan’s exports to NSP target countries slowed due to a slump in demand caused by the virus first reported in the Chinese city of Wuhan late last year, the MOEA said. But this trend is less pronounced than in Japan and South Korea, which concluded free trade area agreements with the Association of Southeast Asian Nations in 2005 and 2008, respectively, the ministry added.
 
The country experienced a cumulative decline in exports growth of 5.1 percent to NSP target countries for the first five months of the year, the MOEA said, adding that this compares to 12.3 percent for Japan and 13.8 percent for South Korea.
 
In addition, the policy is paving the way for Taiwan to benefit from the U.S.-China trade war as more firms shift supply chains to NSP target countries like Thailand and Vietnam, the ministry said. Such a development is supported by the visible commitment of NSP governments to welcoming fast-tracked foreign investment in manufacturing sectors and a reduced reliance on imports, the ministry added.
 
The NSP is a key plank in the government’s national development strategy. It aims to enhance Taiwan’s agricultural, business, cultural, education, tourism and trade ties with the 10 ASEAN member states, six South Asian countries, Australia and New Zealand. (TYT-E)
 
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