The agreement is expected to cut by one year the time required for applicants from both sides to obtain plant species rights for orchids and will save them approximately NT$25,000 (US$714) in application fees for each species, the official said.

The agreement was reached during a recent visit to Taiwan by Bart Kiewiet, president of the Community Plant Variety Office (CPVO), the European agency responsible for managing a system of plant variety rights covering the 27 EU member states, according to the official.

The COA also consulted Kiewiet on issues related to expanding Taiwan's applications for CPVO's patent protection for a number of plant species.

As blooming orchids are susceptible to damage during transportation, Taiwan at present exports only orchid seedlings, the official said.

Noting that the annual global production value of blooming orchids is about US$2 billion, the official said the COA hopes the agreement will help Taiwan horticulturists gain plant variety protection rights, obtain royalties in Europe, and tap into business opportunities there.

Since March 2007, the EU has been accepting applications from Taiwanese horticulturists for orchid variety rights, which allows them to form strategic alliances with their EU counterparts on production and sales and promotes two-way trade, the official said.

Over the past two years, Taiwan has filed 50 applications for protection rights for a new butterfly orchid species, the official said, adding that this was the highest number of applications filed from outside the EU's 27 member states.

The total value of Taiwan's butterfly orchid exports to the EU in 2008 exceeded NT$300 million, triple the figure in 2005.

Taiwan's annual flower exports have been about US$100 million over the past few years, with orchid seedlings claiming the lion's share of 80 percent, or US$80 million, the official added.

Although the United States and Japan remain the two major markets for orchid exports, accounting for some 30 percent each, Europe takes some 15 percent to 20 percent, the official said.

The COA is therefore paying great attention to the European market in anticipation of growing demand, the official added.

At the moment, most butterfly orchid horticulturists in Taiwan are focused on applying for plant variety rights at home, and are hesitant to file applications with the CPVO, mainly because the application fees amount to NT$100,000 and the process is time-consuming, according to the official.