TAIWAN

Landmark Law Pushes Taiwan on Free-Trade Course: Taiwan has passed a landmark law that commits the island to free-trade principles while giving the nation legal authority to impose trade sanctions against other countries. The law, approved last week, will aid Taiwan’s application for membership in the General Agreement on Tariffs and Trade, officials said. “Our trade law is designed to satisfy the spirit of GATT and bring us into line with international trade practices,” said Hsu Chao-ling, deputy director-general of the Board of Foreign Trade. The 37-article law is the first omnibus trade measure passed since Taiwan’s Nationalist government assumed power over four decades ago. Although it commits the island to continue opening its markets, the law does not mandate specific reforms. It calls for trade sanctions, such as punitive tariffs and a temporary ban on imports, against countries found guilty of dumping their products or violating reciprocal agreements. Taiwan must seek negotiations before imposing any sanctions. The legislation is similar to Section 301 of the U.S. Trade Law, which Washington has used to threaten retaliation against Taiwan during trade disputes, officials said.