TAIPEI (Taiwan News) – The Ministry of Economic Affairs opposes proposals from lawmakers to cut tariffs on car imports from 17.5% to 0% to help Taiwan’s bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), reports said Friday (Dec. 13).

Taiwan’s application to join the trade bloc is expected to come under review soon, with the government expanding contacts with the 12 member nations. Taiwan also hopes to prevent interference from China, which applied for membership slightly earlier.

A group of 17 lawmakers led by DPP Legislator Wang Shih-hsien (王世堅) submitted a proposal reducing the car tariffs to 0%, per CNA. They argued the change would help consumers buy cars and show the country was serious about promoting international trade.

However, a report by the MOEA argued the tariff cut would not help consumers, but harm the local car industry. Allowing imported cars to become cheaper would result in international car groups losing interest in having cars manufactured in Taiwan, the MOEA said.

The sales of imported cars were already eating into the market for domestic vehicles, the report also argued, so there was no need for a tariff cut as drastic as the legislators proposed. The cuts might also cause a loss of NT$60 billion (US$1.84 billion) in income for the treasury, leading the MOEA to conclude there should be no tariff reduction for imported cars.