Self-economic zone dispute "opening up of 830 agricultural products in China, turning over water into MIT, Chen Jizhong: absolutely killed Taiwan's agriculture."

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KMT legislators Zeng Mingzong, Fei Hongtai, and Lai Shibao proposed the draft "Special regulations on Free Trade Special Economic zones" in early March. Kaohsiung Mayor Han Guoyu even actively shouted to the central authorities a few days ago: "Kaohsiung must be the first choice for the establishment of a self-economic zone." However, Chen Jizhong, chairman of the Council of Agriculture, said today (6) that the self-economic zone has done great harm to the agricultural sector. "it is absolutely impossible for people to come in, goods out, and everyone to make a fortune."

Chen Jizhong further pointed out that since the Economic Zone opened up 830 China's regulated agricultural products to the SEZ, they enjoyed exemption from customs duties, export taxes, and income tax on profit-making enterprises, and food processors absolutely preferred to use China's low-priced agricultural raw materials, which had an impact on domestic agricultural products. And in the special zone, even if you use Chinese agricultural raw materials for processing, you can still hang the MIT brand, but the food safety problems of raw materials in various countries are difficult to control, and the reputation of Taiwan's MIT will be greatly affected. He initially estimated that "the impact will be at least 79.9 billion yuan."

News Dictionary: the government currently controls the import of 830 agricultural products, including staple grains such as rice and corn. Vegetables: cabbage, cauliflower, garlic, edamame beans, mushrooms and so on. Fruit: banana, pineapple, mango, grape and so on. Special cereals: peanuts, red beans, black tea, green tea, oolong tea and so on. Animal products: beef, pork, chicken, duck, goose, dairy products, etc. Fish products: eel, tilapia, mackerel, nine holes, etc., and ornamental crops.

Photo source / Chen Jizhong briefing

Chen Jizhong: "the whole world will equate Taiwan with Chinese food."

In the future, agricultural raw materials imported from China can be put on MIT after processing in the special zone, affecting Taiwan's food reputation. Chen Chi-Chung is worried that "in the future, the whole world will equate Taiwan's food with food produced in China."

From the perspective of farmers, the self-economic zone harms agriculture and affects the willingness of processors to use Taiwan's agricultural raw materials, and it is also affected on the consumer side. Peanut butter, for example, is an unregulated product that can be sold domestically. since the establishment of the economic zone, peanuts imported from China have been processed into peanut butter and hung with the MIT brand, so consumers have no way to identify the origin of raw materials. Chen Zhizhi said, "in the future, peanut butter peanut butter on breakfast toast comes from China. Do consumers want to eat peanut butter like this?" Won't food safety have more doubts? "

If the self-economic zone is opened, the export output value of agricultural products used for food processing will now lose NT $79.9 billion.

The total annual output value of agriculture is about 545.1 billion yuan, and agricultural products put into processing account for about 37% of the total output value (about 201.7 billion yuan). Taiwan's agricultural food processing (including edible oils, canned foods, frozen foods, condiments, dairy products, etc.) has an annual output value of about 609.6 billion yuan and an export value of 79.9 billion yuan. Chen Jizhong stressed that since the economic zone is rewarded and exempted from customs duties and export taxes, domestic agricultural products will be replaced, "hitting at least 79.9 billion yuan."

In the case of tea, the current export output value is 3.3 billion yuan, which does not come from the opening of the economic zone. Processors put the MIT mark on the packaging of Chinese tea, which directly affects local tea exports. "it is equivalent to an impact on the tea industry of 3.3 billion yuan." Behind every open agricultural product, it represents that the local agricultural products produced by farmers are affected. "these are all victims and are very serious."

Chen Jizhong reiterated that he is totally opposed to the establishment of a self-economic zone. "this absolutely destroys Taiwan's agriculture and Taiwan brands, and causes even greater food safety problems." Politicians should not fake the development of free trade economy to redistribute income. "We strongly oppose it."

Note 1:

Article 9: the new edition stipulates that agricultural products manufactured or processed by designated enterprises in Category I shall be exported to domestic tax areas after approval by the central agricultural authority.

Article 33: the old version stipulates that profit-making enterprise income tax shall be levied for more than 10% of domestic sales, and the new version shall be engaged in the procurement, import, storage, or transportation of goods in the special zone, which shall be exempted from profit-making enterprise income tax and abolish the 10% requirement after examination and approval by the administrative organ of the special zone.

Article 42 allows all foreign agricultural products to enter the SEZ, including those under global and Chinese control, as well as any raw materials for food processing, with zero tariff if exported abroad. It is equivalent to opening up 830 Chinese agricultural products to enter the special zone, all regulated products can be exported, while non-regulated products can be sold at home and abroad.