The key issues that OECD discusses and addresses tend to shape the future of global economy. Identifying the critical trade issues for OECD in recent years, therefore, provides informative insights into the future global economic and trade landscape. The study focuses on five key trade issues for OECD in recent years: industrial subsidies, fossil fuel subsidy reform, state-owned enterprises (SOEs), trade and environment, and conflict minerals and rare earths, and examines key interest areas under each topic, while exploring the policy implications for Taiwan to deepen its participation in the global governance system.

On the issue of industrial subsidies, previous OECD research has suggested China's subsidies and SOEs are the primary threats to a fair and competitive global marketplace. In addressing China's SOEs and subsidies, the current WTO rules on transparency and subsidies prove to be insufficient, as a number of Taiwanese sectors have fallen victim to such unfair competition when conducting international trade. A reform of subsidy measures is thus of top priority to maintain a fair and competitive international market and safeguard the export interests of the affected sectors in Taiwan.

On reforming fossil fuel subsidies, Taiwan’s efforts to reform and reduce fossil fuel subsidies have provided both financial and environmental benefits. As a current member of the Friends of WTO Fossil Fuel Subsidy Reform, Taiwan has been proposing the development of fossil fuel subsidy guidelines at the WTO forum in relevant international deliberations. The study suggested the government continue to follow global discussions on reforming inefficient fossil fuel subsidies, while reviewing domestic reform performance with transparency, in order for energy prices to reflect their full costs, and to pursue internalization of environmental costs.

Regarding trade and environmental issues, the study examined the environmental provisions included in regional trade agreements of three developed economies (US, EU, Canada) based on the OECD research methodology. The results indicate that environmental legislation, environmental commodities, stakeholder participation, and design of cooperation mechanism are potential factors determining the development and scaling of a green supply chain. Considering the demand from the global green supply chain, and the government’s focus on building renewable energy and a circular economy, it is desirable for Taiwan to tailor to the needs of local circular economy-related sectors when designing the environmental provisions of future RTAs.

When it comes to international discussions on conflict minerals, key areas of concern include ensuring responsible supply chain management to reduce associated risks and corporate due dilience for mineral supply chains, which involve companies across all tiers and affect trade throughout the supply chain. The studdy observed that over 90% of companies registered in Taiwan are SMEs, and the obligation to follow international practices and meet the requirements of global brands and local authorities may lead to extra costs and workload. It is suggested that the government develop measures to support businesses to fulfill relevant requirements, and explore the feasibility of government grant programs, so as to ease the burden on these enterprises and foster effective participation in the global supply chain network.

In terms of rare earth management, semiconductor device, LCD panel, integrated circuit, and wafer sectors are some of the largest users of rare earths in Taiwan, which are also key export products. Therefore, securing a stable rare earth element supply and reducing the associated risks should be the primary focus of Taiwan at international forums on rare earth management. At present, Taiwan is not able to join existing international initiatives as an owner of rare earth resources. However, Taiwan as a major exporter of high-tech products could leverage its strategic position in the semiconductor, wafer, and LCD panel supply chains to seek participation in organizations or initiatives related to rare earth supply chain security.

Chinese：https://web.wtocenter.org.tw/Page/21/388795