US embassy cable - 04TAIPEI3242

UNCLAS SECTION 01 OF 02 TAIPEI 003242 
 
SIPDIS 
 
STATE FOR EAP/RSP/TC AND OES/IHA 
 
STATE PLEASE PASS TO AIT/W, USEPA AND USTR 
 
USTR FOR KI, USEPA FOR OIA/THOMPSON 
 
USDOC FOR 4431/ITA/MAC/AP/OPB/TAIWAN/MBMORGAN 
USDOC FOR 3132/USFCS/OIO/EAP/ABACHER/ADESARRAN 
USDA/FAS/ITP/MEYER, FARINA 
USDA FAS FOR ITP/AAD 
USDA FAS FOR CMP/GFD, COTS 
 
E.O. 12958: N/A 
TAGS: ECON, SENV, TW, ESTH 
SUBJECT:  TAIWAN'S EPA NARROWS SCOPE OF DRAFT PACKAGING 
RULE; AIT PROMOTES BIOPLASTICS AND BIOFUELS 
 
 
A) TAIPEI 03145 B) TAIPEI 02673 C) TAIPEI 03180 
 
1. Summary. In July 2004, Taiwan's Environmental Protection 
Administration (TEPA) introduced a draft rule to limit 
excessive packaging.  In response to industry opposition to 
the rule, TEPA issued a second revised draft of the rule on 
October 12.  The second draft is much narrower in scope than 
the original.  Instead of covering a wide variety of 
products, the revised rule primarily focuses on limiting the 
packaging of computer software and gifts.  While TEPA 
initially planned on closing the comment period in October, 
AIT persuaded TEPA to extend the comment period through the 
end of November.  When meeting with TEPA, AIT AGOFF also 
urged EPA to support the increased use of environmentally 
friendly technologies such as bioplastics, biofuels and soy 
ink.  End Summary. 
 
Background 
---------- 
 
2.  As reported in Refs A and B, TEPA is eager to pass 
regulations to reduce excessive packaging of goods in order 
to reduce waste and move Taiwan towards its ultimate goal of 
complete recycling and zero waste by 2020.  Initially TEPA 
was hoping to pass the rule by September 2004.  However, in 
part due to the strong negative reaction of foreign industry 
reported in reftel B, TEPA has redrafted the rule and 
postponed its time-line for implementation. 
 
Second Draft Narrows Scope 
-------------------------- 
 
3.  The new draft of the rule has significantly narrowed the 
scope of the rule.  Now, instead of ultimately applying to 
all confectionary items, cosmetics, optical disks, alcohol 
products and processed foods, the rule only applies to 
computer software and gift-packaged confectionary items, 
cosmetics, optical disks and processed foods.  Under the 
second draft, non-gift packaged confectionary items, 
cosmetics, optical disks and processed foods would no longer 
be subject to regulation. 
 
TEPA Extends Comment Period 
--------------------------- 
 
4.  Econ, Ag and Commercial Officers met with Yang Ching- 
shi, Deputy Director General of the Department of Waste 
Management on October 15.  While Yang initially planned on 
closing the comment period within a week or two, the AIT 
delegation persuaded Yang to allow foreign business 
interests to submit comments through the end of November, 
and then to send the draft rule to the WTO for comment.  AIT 
also persuaded TEPA to include an English translation of the 
rule on its web site by Friday October 22.  Yang estimated 
that the rule would only be promulgated by early 2005 at the 
soonest.  AIT has notified the American Chamber of Commerce 
of the new draft and of the November deadline for comment. 
 
AIT Promotes Bioplastics and Biofuels 
------------------------------------- 
 
5.   AIT AGOFF took the opportunity to also promote the use 
of bioplastics and biofuels, both of which have strong 
environmental benefits and could significantly increase the 
demand for U.S. soybeans and corn (Ref C).  AGOFF noted USDA 
and USEPA joint interest in sending an AIT delegation to 
Taipei to provide technical assistance with respect to 
bioplastics and biofuels.  AGOFF also urged TEPA to support 
the removal of a 2.5 percent import duty on corn-based 
polylactic acid (PLA), which has negatively impacted the 
competitiveness of bioplastics.  Yang appeared interested in 
hosting an AIT delegation on bioplastics and biofuels.  Yang 
also stated he supported the principle of eliminating the 
import duty on PLA, but noted TEPA has no authority with 
regard to issues of taxation.  AIT/AGR is currently drafting 
a letter to TECRO requesting the removal of the PLA duty. 
 
Paal