Taiwan says as WTO member, it has FTA rights
Reuters | 5 June 2010
Taiwan says as WTO member, it has FTA rights
SAPPORO Japan (Reuters) — Taiwan’s economics minister said on Saturday that as a World Trade Organization member, Taiwan has the right to seek free trade deals with many partners, a move China opposes as the two work on a trade pact.
The spat between Beijing and Taipei over whether Taiwan can pursue free trade agreements with governments besides China poses a risk to a trade pact between the two sides under negotiations that could mark a quantum shift in its ties.
"Pursuing EPAs and FTAs is a part of rights as a WTO member. Taiwan, of course, is a member and has these rights," Economics Minister Shih Yen-shiang told Reuters, referring to Economic Partnership Agreements and Free Trade Agreement.
"We would like to do our best and continue EPA and FTA negotiations with our main trading partners," he said, speaking through a translator on the sidelines of the trade ministers meeting of Asia-Pacific Economic Cooperation in northern Japan.
Some $109 billion worth of products a year flow across the Taiwan Strait and while the pact will slash tariffs on hundreds of these goods, it has split Taiwan between those who see its $390-billion economy benefitting from more access to China’s markets and those who fear over-reliance on its political rival.
While many expect the pact, called economic cooperation framework agreement (ECFA), to be signed in June, Shih declined to say if that would be the case.
"Of course, both sides have expected to see difficulties and obstacles in ECFA," he said. "We are trying to sign this as soon as possible."
Taiwan officials have said they expect the ECFA to open doors to FTAs with Japan, the United States and Southeast Asian nations.
They had already started discussion with foreign governments and two in the Asia-Pacific have said they were interested, the premier told Reuters last month.
(Reporting by Yoko Kubota; Editing by Sugita Katyal)
