WTO entry could force direct links

Taiwan's bid to enter the WTO could be blocked by China if Beijing is admitted first and uses its status as a member to request bilateral talks on Taipei's direct "three links" ban, according to Premier Tang Fei (唐飛).

Tang, who was responding to lawmakers' questions at the legislature earlier this week, said that while the Taiwan government is hoping both sides enter the WTO at the same time, China is working to see that Taiwan's entry comes after its own.

"As soon as it is granted member status, China would have the right to request bilateral discussions with Taiwan," Tang said. At that time Beijing will likely seek talks about Taiwan's ban on the direct "three links" -- trade, transport and communications -- with China, Tang said.

By requesting bilateral talks under the WTO framework "Taiwan would be forced to discuss the issue with China" or see its bid to join the trade body blocked, he said.

Indeed, simply by requesting bilateral trade discussions with Taiwan, China would be able to delay the island nation's entry into the WTO until the talks are concluded -- a process that could take months.

Taiwan has refused to enter into talks with China on the links issue until China shows "goodwill" by dropping a precondition whereby Taiwan must accept the "one China" principle.

Tang hinted at Taiwan's constricted position on the matter saying, "The schedule of Taiwan's entry into the WTO involves discussions between China and the international community ... This is not something that we alone can control," he said.

Taiwan's ban on direct links with China contravenes Article I of the General Agreement on Tarrifs and Trade -- the forerunner of the WTO -- which states that members must extend equal preferential treatment to all other members.

If Taiwan wishes to maintain the ban, it must inform the WTO General Council prior to entry that it wishes to invoke Article XIII of the WTO agreement, effectively denying China the benefits of trading rights extended to other members.

But observers say that such a move is politically unfeasible.

Minister of Economic Affairs (經濟部) Lin Hsin-yi (許嘉棟) joined Tang on the podium to address questions on WTO, saying that delays in China's discussions with the remaining four or five member countries of its accession working group, would put off entry of both Taiwan and China until the end of the year.

Speaking recently on the Taiwan accession issue, China's Minister of Foreign Trade and Economic Cooperation Shi Guang-sheng (石廣生) indicated that after Beijing enters the trade organization, it may choose to lodge an appeal with the WTO General Council over Taiwan's direct links ban.