Formosa Petrochemical Corp. (6505.TW) said it is concerned about rising competition from Asean countries for oil products exports to China, because only a fraction of oil products requested by the Taiwanese oil industry will benefit from the planned wide-ranging trade pact with China, Formosa Petrochemical Chairman Wilfred Wang said Thursday.

"Of course, we are disappointed. We hope we still have a chance to revise the outcome," Wang said at the annual general meeting of Taiwan's only privately run oil refiner.

There is increasing competition from oil products exports from Singapore and Thailand to China, as China removed import tariffs on oil products from these Asean countries earlier this year, Wang said.

Taiwan and China are set to sign an extensive trade agreement in next few weeks covering trade, investment, services and a list of industrial items, including oil products, that will be the first benefit from lower or zero tariffs.

Taiwan government officials said Monday China has agreed to lower or remove tariffs on around 500 Taiwanese items, and Taiwan has decided to lower or remove tariffs on more than 200 items from China.

Source: Downstream Today

Although both sides haven't disclosed details of the lists, Taiwan's petrochemical industry has started expressing its frustrations, because much fewer than the 100 products requested by the industry will likely be on the final list, local media reported.

Taiwan's exports to China totaled US$83.7 billion last year, accounting for 41.1% of the island's exports. Petrochemicals exported to China totaled US$7.88 billion, or 9.4% of the island's exports to China in 2009.

Formosa Petrochemical is the largest member of Taiwan's Formosa Plastics Group, which operates an integrated refining and petrochemical complex in Mailiao in western Taiwan.