Taiwan may open cross-strait trade

Taiwan may open up direct trade with China after both sides join the WTO, but not for direct investment, transport or communication, economics minister Wang Chih-kang (?y揮??/CHINESE>) said after addressing the WTO's Third Ministerial Conference in Seattle.

Wang, who is heading up Taiwan's delegation, made the comment pointing out that current WTO rules do not require Taiwan to completely open all links.

Li Zhaoxing, Beijing's ambassador to Washington on Wednesday said Taiwan should liberalize direct trade, transportation and communications.

Taiwanese officials have said that they might open direct air links with China if Beijing shows goodwill after both countries enter the trade body.

During his address, Wang appealed to members to support Taiwan's formal accession during the new round of trade negotiations and called for full participation in the next series of talks.

Wang also reiterated Taiwan's support for the assistance of developing countries, saying that Taipei is ready to share the island's experience in the development of trade and investment.

Earlier this week, Chinese officials had urged Taiwan to drop restrictions on trade and investment for China.

Currently Taiwan does not conduct direct aviation and navigation links with China under its "three-links" policy of no direct trade, communication or transportation. Thus flights to China go via Macau or Hong Kong.

According to Younger Wu (吳榮貴), director general of the Aviation and Navigation Department under the Ministry of Transportation and Communication, direct air links involve consideration of national security and could only be conducted under the condition that Taiwan stand on an equal footing with China.

Direct shipping is also forbidden, thus Kaohsiung harbor serves as the offshore shipment hub for handling cross-strait shipping. Current regulation allows ships bearing "flags-of-convenience" to ship goods to the Chinese harbors of Xiamen and Fuzhou in southeastern China.

Officials have indicated that the opening up of direct aviation and navigation links have been studied with a view to closer contacts being forged between both sides.

"We have been working on different strategies in preparation for the possible gradual lifting of current restriction," said Wu.