Thu, Aug 03, 2006 - Page 8 News List

The long road to a US-Taiwan FTA

By Nat Bellocchi 白樂崎

His remarks were about Taiwan's need to move closer to China for its own interests as well as those of US companies with China exposure -- and that might help in getting a FTA agreement. He seems to believe that it is Taiwan's policies, not China's, that are preventing this from happening.

Setting aside the internal struggle within Taiwan on matters dealing with cross-strait issues and Taiwan's liberty, the suggestion is that Taiwan's industry, more closely tagged to China, would be better for the US. There may be some US companies that would like it, but it's doubtful that leaders responsible for security -- in the US, Taiwan or other allies -- would agree.

The Taiwanese government has often called for dialogue with China to discuss the many practical issues that need to be addressed. The US government publicly encourages this.

It is still US policy that a change in Taiwan's relationship with China, such as that being suggested, would need the assent of the people of Taiwan.

Now that Taiwan has developed a sound economic basis to argue for a FTA, the USTR seems to think that Taiwan should cozy-up to China. That is close to a policy of no FTA until Taiwan is part of China (the price the PRC demands is that, ultimately, Taiwan must accept becoming a part of China). While most observers feel the US had never been interested in negotiating a FTA with Taiwan, few thought it would come to this.

In the end, the price Taiwan would have to pay for agreeing to an FTA, as suggested by the USTR, would be beyond what a free country finds acceptable. A Taiwan that can help the region maintain its economic and political liberties, might convince US businesses that the price would be too high even for them.

Nat Bellocchi is a former chairman of the American Institute in Taiwan and is now a special adviser to the Liberty Times Group. The views expressed in this article are his own.

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