Raul Delapena Setiawan
The Committee on Transportation and Tourism has issued a comprehensive set of recommendations aimed at dismantling the systemic inefficiencies currently hindering Taiwan’s competitiveness in the global market. At the heart of the proposal is a call for the Executive Yuan to bridge the gap between fragmented government agencies, whose overlapping jurisdictions and outdated regulations have created barriers to innovation. Taiwan’s tourism and transport sectors currently face a complex web of challenges ranging from mobility service frameworks and international visitor experiences to vehicle import standards and electric vehicle (EV) infrastructure. While the government has demonstrated a commitment to safety, the Committee argues that the lack of horizontal coordination—where agencies work in silos rather than in concert—is preventing Taiwan from fully capturing the benefits of international trade agreements and technological advancements.
As Taiwan deepens its economic partnership with the United States through the U.S.-Taiwan Initiative on 21st-Century Trade, the need for regulatory alignment has become a matter of national economic priority. The Committee emphasizes that the current environment, characterized by redundant certification processes and inflexible licensing, not only inconveniences citizens but also deters foreign investment and reduces the quality of the visitor experience. By modernizing these frameworks, Taiwan can demonstrate its capacity for effective governance while building a sustainable, digitally-integrated transport ecosystem.
A Chronology of Regulatory Evolution and Current Stagnation
The push for reform follows several years of incremental policy shifts. In 2019, the National Land Management Agency took a significant step by incorporating EV charging requirements into the Building Technical Regulations. This was followed by the "Taiwan Tourism 2030 White Paper," which set ambitious targets for international arrivals. Most recently, the conclusion of the first agreement under the U.S.-Taiwan Initiative on 21st-Century Trade, often referred to as the Agreement on Reciprocal Trade (ART), established a new baseline for cross-border commerce.
However, the implementation of these policies has hit a series of roadblocks. For instance, while the ART was intended to streamline the import of U.S.-specification vehicles, a discrepancy between the English and Chinese versions of the text has created legal ambiguity. Furthermore, despite the 2019 building code changes, many new constructions remain ill-equipped for modern EV charging needs due to a lack of specific technical standards for wiring conduits. The Committee’s current roadmap serves as a critical intervention to align these past initiatives with future economic goals, particularly the target of attracting nine million international visitors by 2026.
Harmonizing International Trade: The U.S.-Taiwan Agreement on Reciprocal Trade
One of the most pressing issues identified by the Committee is the inconsistent implementation of the ART. The agreement includes provisions for zero tariffs and simplified certification for U.S.-made vehicles that comply with Federal Motor Vehicle Safety Standards (FMVSS). However, a significant linguistic discrepancy has emerged: the English version of the agreement uses the broad term “vehicle,” which includes motorcycles and commercial vehicles, whereas the Chinese-language version specifies only “passenger car.” This narrow interpretation risks excluding a wide range of U.S. exports and limits the diversity of the Taiwanese automotive market.
The Committee urges the Ministry of Transportation and Communications (MOTC) to align its implementation with the full scope of the English text. Beyond linguistic alignment, there are concerns regarding redundant documentation. Despite the ART’s commitment to mutual recognition, a February 2026 press release from the MOTC suggested that U.S.-spec vehicles must still obtain separate domestic certifications for energy efficiency, emissions, and noise from the Ministry of Economic Affairs and the Ministry of Environment. These "redundant" procedures are seen as a violation of the spirit of Article 3.2 of the ART, which aims to eliminate additional conformity assessment procedures.
Furthermore, trade facilitation is being hampered by "frequent importer" restrictions. Current Ministry of Finance regulations impose quotas on duty exemptions for express shipments. The Committee argues that these numerical limits are inconsistent with Article 2.14 of the 21st-Century Trade initiative and should be removed to allow for the seamless flow of cross-border e-commerce and industrial parts.
Reimagining Tourism: Integrated Resorts and Regional Development
Taiwan’s tourism sector has shown resilience, but the Committee believes it requires a structural overhaul to reach "world-class" status. The government’s “Smile South Taiwan” project and the “Tropic of Cancer Peak Flagship Project” are praised as strong conceptual starts, but their execution is often bogged down by environmental impact assessment (EIA) delays and fragmented local-central government approvals.
To address this, the Committee proposes designating "integrated-resort development" as a priority national project for the 2026–2029 period. This would involve the creation of a cross-ministerial task force under the National Development Council to act as a "single window" for investors. Such a project office would coordinate agency responsibilities, streamline EIAs, and manage the complex zoning requirements that currently stall large-scale developments.
Investment viability remains a concern for many developers. The Committee suggests that the government provide targeted tax incentives and financing support for Build-Operate-Transfer (BOT) projects. Additionally, to solve the talent shortage in high-end tourism management, the eligibility for the Employment Gold Card should be expanded. Connectivity is the final piece of the puzzle; for sites like the Dapeng Bay National Scenic Area to succeed, they require integrated transport links, including expanded high-speed rail access and improved ferry services to offshore islands.
Digital Mobility: Transitioning to App-Based Ecosystems
The transport sector is currently in a state of transition between traditional operating models and digital-first solutions. The Committee notes that outdated taxi license caps and inflexible pricing structures are no longer suitable for an era of real-time demand. These restrictions often result in a shortage of vehicles during peak hours and a surplus during low-demand periods, creating inefficiencies for both drivers and passengers.
A key recommendation is the authorization of "smart taximeters" or "soft meters"—app-based GPS metering systems that integrate payment and trip planning. Current regulations, such as the “Regulations Governing the Management of Automobile Transportation Businesses,” are built around traditional dispatch models and do not fully recognize the safety and accountability benefits of digital platforms. The Committee proposes a regulatory sandbox for autonomous vehicles to prepare for future commercial deployment, building on the existing Unmanned Vehicles Technology Innovation Experimentation Act.
Electrification of commercial fleets is another priority. Because buses and taxis have much higher utilization rates than private cars, their transition to electric power offers the highest impact for emissions reduction. However, the upfront costs remain a barrier. The Committee recommends increasing subsidies and introducing "usage-based" incentives, such as allowing electric commercial vehicles access to priority lanes or designated loading zones, to make the transition economically viable for operators.
Enhancing the Visitor Experience: From Arrival to Payment
The first impression of an international visitor often occurs at the airport, and the Committee finds Taiwan’s current airport ground transportation lacking. While the MOTC has begun introducing e-hail services, the system remains inconsistent across different international airports. The reliance on queue-based dispatch leads to long wait times and a lack of choice for travelers.
Beyond the airport, the "digital journey" of a visitor is often interrupted by payment barriers. While the MRT systems in major cities now accept contactless cards, many other tourism-related services do not. The Committee suggests that the government mandate the acceptance of international contactless payments for all public transport and major tourist attractions.
A particularly innovative suggestion involves the "Trusted Corporate Sponsor" fast-track mechanism for MICE (Meetings, Incentives, Conferences, and Exhibitions) events. Currently, American multinational corporations (MNCs) find it difficult to bring regional teams from non-visa-exempt jurisdictions to Taiwan for corporate retreats. The complex, multi-agency sponsorship process often leads these companies to choose Singapore or Tokyo instead. By allowing verified corporations to act as guarantors for their employees, Taiwan could capture high-yield corporate tourism revenue while maintaining national security standards.
Infrastructure Modernization: EV Readiness and Road Safety Standards
As the number of registered Battery Electric Vehicles (BEVs) in Taiwan exceeded 130,000 by 2025, the strain on home charging infrastructure has become apparent. A survey by Taipower indicates that 80% of EV owners prefer to charge at home, yet many new buildings are constructed with conduits that are too small for standard 7kW chargers. The Committee recommends an immediate amendment to the Building Technical Regulations to require a minimum nominal conduit diameter of 28 mm, ensuring that residents can install the necessary wiring for modern charging systems without expensive retrofitting.
Road safety also requires a technological upgrade. The Committee points out that current road-marking standards (CNS1333 and CNS4342) focus on material composition but fail to mandate performance-based outcomes, particularly retroreflectivity in wet or nighttime conditions. This is a significant safety risk in Taiwan’s rainy climate. The Committee urges the government to adopt CNS15834 standards, which emphasize visibility and durability. Transitioning to higher-performance, all-weather retroreflective markings would reduce long-term maintenance costs and, more importantly, reduce the social costs associated with traffic accidents.
Official Responses and Institutional Alignment
In response to these challenges, government agencies have shown varying degrees of engagement. The MOTC has acknowledged the need for better airport transportation but has cited the need to balance the interests of traditional taxi unions. The Ministry of Finance has remained cautious regarding the removal of import quotas, citing potential impacts on tax revenue. However, the Committee argues that these are short-term concerns that pale in comparison to the long-term economic growth stimulated by a more open and efficient regulatory environment.
The National Development Council has expressed openness to the idea of a "single window" for tourism projects, noting that the 2030 White Paper already aligns with many of the Committee’s goals. The challenge remains in the execution—ensuring that the Ministry of Environment, the Ministry of the Interior, and local governments are all working toward the same timeline.
Broader Impact and Economic Implications
The implications of these reforms extend far beyond the tourism and transport sectors. Successful implementation would signal to the international community that Taiwan is a leader in regulatory transparency and innovation. By aligning with U.S. standards and international best practices, Taiwan can solidify its position as a key node in global supply chains and a premier destination for high-value tourism.
The shift toward digital mobility and EV infrastructure also aligns with Taiwan’s broader "2050 Net Zero" emissions goals. By modernizing building codes and incentivizing commercial vehicle electrification, the government can achieve significant environmental milestones while simultaneously fostering a new domestic industry centered on green transport technology.
In conclusion, the Committee emphasizes that Taiwan stands at a crossroads. The existing fragmented governance model served its purpose in a different era, but the demands of the 21st-century economy require a more integrated, agile, and transparent approach. By prioritizing cross-ministerial coordination and modernizing outdated regulations, Taiwan can ensure that its transport and tourism sectors serve as engines of economic growth, providing world-class experiences for citizens and visitors alike.
Lina Irawan
Asro
