Encouraged by the doubling of trade with Panama after signing a free trade agreement (FTA) with the Latin American nation, Taiwan is now negotiating FTAs with Nicaragua and Paraguay, the Board of Foreign Trade (BOFT) said yesterday.
"The second round of FTA talks with Nicaragua will be held in Taipei September 20-24. Nicaragua's vice minister of industry and commerce, Alejandro Arguello, will lead a 20-member delegation to Taipei for the talks," BOFT Deputy Director Wu Hsin-hua (
"Taiwan and Paraguay are also scheduled to hold their second round of FTA talks, following the first round of talks held in Asuncion on August 9," Wu said.
Those bilateral talks are scheduled to be held next January in Taipei.
Taipei signed its first FTA with Panama last year, with the agreement becoming effective from January this year.
In the first eight months of this year, Taiwan-Panama trade rose 116 percent to US$170 million, compared with US$40 million last year.
Between January and August this year, Taiwan's exports to Panama rose 103 percent, while Panama's exports to Taiwan increased 424 percent.
However, observers believe Taiwan's signing of an FTA with Paraguay may meet obstacles because Paraguay is a member of the South American Common Market (Mercosur), which requires its members to seek approval from other Mercosur members before completing an FTA.
"Paraguay's President Nicanor Duarte is consulting with the other Mercosur members -- Brazil, Argentina and Uruguay -- about signing an FTA with Taiwan," Wu said.
Panama, Nicaragua and Paraguay are among the 16 countries that recognize Taiwan.
Taiwan press reports have said China has asked Brazil, Argentina and Uruguay to persuade Paraguay to switch allegiance to Beijing, so these three countries are unlikely to approve an FTA between Paraguay and Taiwan.
Taiwan is also seeking an FTA with the United States, Japan, Singapore and other countries, but talks are moving slowly because these countries want to sign FTA pacts with China, the world's largest market.
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