Taiwan must refocus efforts to cut its...

Taiwan must refocus efforts to cut its lopsided trade surplus, which is helping to fuel global trade imbalances that threaten the world economy, a Joint Economic Committee report says.

The United States, which imported $15.7 billion more from Taiwan than it sold there last year, accounts for 80% of Taiwan’s trade surplus, according to the report titled “Restoring International Balance: The Taiwan Economy and International Trade.”

The report noted that Taiwan’s government has reduced import duties and launched a “buy American” campaign but said Taiwan must adopt a broader strategy if it is to succeed.

Recommendations included: a substantial revaluing of the Taiwanese dollar; relaxation of controls to permit greater overseas investment by Taiwanese business; a mini-Marshall plan that Taiwan would use to develop alternate markets in developing countries and stimulation of domestic consumer spending in Taiwan to provide a market, other than export, for Taiwanese goods.