China's export of screws affected by the signing of the FTA

At present, South Korea and the European Union and the United States have signed FTA, exporting screw nuts can enjoy zero tariffs, and Taiwan so far only signed ECFA with the mainland, but did not sign similar agreements with the European Union, the United States, Japan and ASEAN, etc., is bound to threaten my export screws We hope that the government will accelerate its steps and sign an FTA with the European Union and other places. Apart from avoiding the marginalization of Taiwan, it can also benefit foreign export orders.

For some screws, the industry is concerned that South Korea and the European Union have signed FTA, which may impact on the export market. Chen Mingzhao, chairman of Taiwan Screw Association, said that although South Korea and the European Union have signed a free trade agreement, the quantity of screws currently exported to the European Union by the ROK is very small, and The EU import tax rate is only 2% to 3%, which is quite limited. Therefore, it has little impact on China. India, on the other hand, is actively expanding the European market. Whether or not the EU abolishes the mainland screw dumping tax is the focus of attention in the industry.

Minister of Economy Shi Yanxiang had recently invited Cai Tujin, chairman of the Federation of China’s Republic of China’s Industrial Parks Association, to specialize in the production of Okayama, a major town for screw production in the south, and held seminars with the screw industry. The invitation includes the chairman of the Screw Society, Chen Mingzhao, Jinci, Chunyu, Juheng, Chaoyou, Antuo and other representatives of the screw industry discussion.

In this regard, Chen Mingzhao believes that South Korea's current screw production capacity is not large, and the main domestic market, even if there is export, only through the Hyundai Motor and other pipelines sold to the United States automotive assembly plant, but the export market in the EU is very small, plus The EU currently imposes a tax of up to 2% to 3% on imported screws, which does not help South Korea's competitive advantage. It is therefore estimated that the FTA signed by South Korea and the European Union will have limited impact on Taiwan.

Chen Mingzhao pointed out that Taiwan’s export screws still use the United States as the largest market, accounting for as much as 30% of the export volume. After the mainland has been accused by the EU and levied anti-dumping duties, the number of Taiwan’s sales to the EU has also increased substantially, and is almost close to 30. In the future, it is worth observing that the WTO recently ruled that the EU’s dumping duty on Mainland screwers was an unfair treatment issue. The EU accepted this ruling, allowing the mainland to return to the EU market, and India’s active development of the screw industry and vigorous development. The European market is a potential threat in the future and we cannot take it lightly.