Austria can serve as Taiwan's bridgehead to the European Union market, Austria's Economics and Labor Vice Minister Josef Mayer said at the fourth Taiwan-Austria Economic Cooperation Conference and the Austrian High Tech Forum held Tuesday in Taipei.

Also present at the forum included an 11-member delegation led by the Austrian Federal Economic Chamber's Foreign Trade Department Director-General Walter Koren, Vice Economic Affairs Minister Hou Ho-shong, and Tong Lung Metal Industry Co. Chairman Wang Chung-yu.

Mayer said at the forum that the Austrian government supports bilateral economic and trade cooperation with Taiwan and that Austria can serve not only as one of Taiwan's trade partners but also as Taiwan's bridgehead to the E.U. market.

Koren, for his part, said Taiwan's high tech industry is world famous and that Austria imports many Taiwan-made products.

However, it is rarely known that these quality products are often made using Austrian expertise and machinery, he went on, giving examples of computer screens, cell phone components, a tunnel construction project on the east coast of Taiwan, as well as communications facilities that Taiwan airports use to control aircraft takeoffs and landings.

Koren pointed out that in the past, Austria collaborated with Taiwan in the area of machinery and plastic components. Austria is Taiwan's largest buyer of communications equipment in Europe.

Ho said both governments are discussing the signing of a bilateral investment agreement in an effort to lower business costs and facilitate investment.

He described Austria as an ideal location for Taiwan businesses to invest in the E.U. market as it has a well-developed high tech industry and sound infrastructure, while Taiwan also can serve as Austria's regional operation center in the Far East and a springboard into China and Southeast Asia.

Noting that the trade exchanges between Taiwan and Austria have been on the rise in recent years, Wang cited customs statistics showing that the total trade amount last year posted a 31.9 per cent increase to reach US$770 billion.

Compared with the previous year, Taiwan's exports to Austria jumped 12.9 per cent to US$314 million in 2006, Wang said, while Taiwan's imports from Austria rose 48.9 per cent to US$463 million.

He said Austrian investors are attracted by Taiwan's high quality manpower, geographic location and trade network, while Austria enjoys competitiveness in transportation management, the machinery industry and the service industry.