TAITRA selects 6 niche markets for trade promotion in 2005

Taipei, March 30, 2005 (CENS)--The Bureau of Foreign Trade (BOFT) under the Ministry of Economic Affairs and the government-funded Taiwan External Trade Development Council (TAITRA) have jointly singled out six emerging markets as trade promotion targets for this year, so as to help avoid trade risk ensuing from the appreciation of the New Taiwan dollar against the U.S. dollar.

The six markets include Poland, Czech the Republic, Hungary, Romania, S. Africa, and Columbia. They are picked because their currencies have posted larger appreciation against the U.S. greenback than the N.T. dollar did, which will be conducive to Taiwan's exports to the six nations, according to a senior TAITRA official. In addition, the six countries all boast robust economic growth and strong demand for imports.

The currency of Poland, for instance, recorded a sharp rise of 24.18% against the U.S. dollar as of March 10, if compared to a year ago. During the same period, the N.T. dollar appreciated by only 7.89%.

Last year, Poland's economic growth rate stood at 5.4%, and its imports surged by 87.1%. In the same year Taiwan's exports to the country posted a rise of 16.3%. Market observers believed that Poland enjoys a stable economic development and has strong potential for imports.

As for Columbia, it registered a modest economic growth rate of 4% in 2004 and its imports chalked up by 10.01%. Compared to a year ago, the nation's currency jumped by 12.72% against the U.S. dollar. Last year, Taiwan's exports to Columbia witnessed a sharp rise of 26.7%.

This year TAITRA is planning to organize four trade promotion groups to tap the markets in the above-mentioned six nations.

In related news, TAITRA's International Sourcing Center (ISC) has helped about 25 foreign firms contact 229 domestic manufacturers for purchases, valued at some US$11.65 million, in the first quarter of the year. Of the 25 foreign firms, Coinstar, a leading U.S. toy dealer, has contacted 18 toy makers here; Arvin Meritor, the world's 10th-largest auto parts maker based in the U.S., has decided to buy suspension systems, exhaust systems and air filters from its counterparts on the island; and Caterpillar, another leading U.S. auto firm, has located some makers of aluminum casting modules.

So far this month, five large foreign firms from Europe, Japan, South Asia, and Central & South America have organized procurement seminars in Taiwan. One of them is Jungheinrich, the world's largest forklift maker based in Germany; and the firm has sponsored some 20 trade talks around the island and is estimated to purchase more than US$3 million worth of products during the latest trip to Taiwan.