Although the failure of the Fifth WTO Ministerial Conference earlier this month may sway many countries to seek bilateral or regional trade deals, Taiwan will continue to strengthen its economic ties with other countries under the WTO's auspices, government officials said yesterday.
"Taiwan has encountered difficulties about signing bilateral trade agreements with other countries due to pressure from China," Liu Jung-chuo, director-general of the Ministry of Foreign Affairs' economic and trade department said at a seminar yesterday.
"Therefore, Taiwan should play it safe and work to help other WTO members reach agreement on various issues during future WTO meetings," Liu added.
On Wednesday Minister of Economic Affairs Lin Yi-fu (
If the WTO fails to function as an arena for reducing trade barriers among member countries, Taiwan is left in an unfavorable position and is likely to be marginalized in the international community, as nations pursue bilateral agreements instead, Lin said at a seminar.
To avoid being economically isolated, the government is seeking to launch FTA negotiations with other countries and has reportedly approached the US, Japan and members of the ASEAN, such as Malaysia, regarding the issue.
Taiwan signed its first-ever FTA with Panama on Aug. 21.
Acknowledging the disadvantages of Taiwan signing bilateral trade agreements, president of the Chunghua Institution for Economic Research (中經院) Vincent Siew (蕭萬長) -- who is also head of President Chen Shui-bian's (陳水扁) economic advisory panel -- suggested Taiwan adopt a strategic role for itself in the global trade body.
"Take a look at agriculture issues. Taiwan can join more than one alliance and try to formulate a solution that both groups can accept," Siew said.
"The bigger the alliance that Taiwan participates in, the greater the possibility of bargaining with other groups and reaching an agreement," he said.
During the Cancun talks, Taiwan and nine other countries including Japan, South Korea and Switzerland, formed an alliance called the "group of 10." The group advocated the gradual removal of tariffs on agricultural exports and a reduction of export subsidies to farmers.
The nation will soon have an opportunity to test its new strategy. In an attempt to resolve various agricultural and trade dis-putes, the WTO decided to hold another meeting in Geneva by Dec. 15.
Meanwhile, one businessman suggested the government should provide more information on the year-to-year changes in trading rules which have been occuring since Taiwan's accession to the WTO.
"Taiwan has committed itself to opening its market year by year under the WTO's rules, but we are rarely informed about the changing trade policies," said Henry Kao (
"I think this information could help us to make investment decisions and adjust our business strategies," Kao said.
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