Taiwan has revealed that pilot free trade zones are to be established to liberalize the island’s economy and upgrade the industrial structure. The Council for Economic Planning and Development (CEPD) aims to attract high value-added industries into the zones. The first phase of development of the zones is to take place in the next few months and will involve the development of zones in seaports.
The free trade zones may enhance cooperation with mainland China, possibly by importing and processing Chinese agricultural products for export. Tax incentives granted to enterprises within the zones are expected to include a reduced corporate tax rate and tax reductions for individuals working within the zones. Customs duty reduction or exemption will apply to imports of materials into the zones for processing and exports of goods from the free trade zones.
