Siew sees economics as key to China ties

Taipei Times: Why do you propose the concept of a "cross-strait common market" (兩岸共同市場) as a means for promoting relations across the Strait just as Taiwan is looking forward to accession to the WTO? Is it intended to replace the WTO framework?

Vincent Siew (蕭萬長): Let me first clarify this point by saying that my common market proposal is in tandem with the WTO framework. Both China and Taiwan expect to join the WTO [later this year] but we will both be more susceptible to the influence of the world economy after WTO accession.

Under such circumstances, [economic] cooperation to the mutual benefit of both sides will be the core issue. The establishment of a cross-strait common market will therefore be supplementary to our WTO memberships. The market will not conflict with the WTO framework; on the contrary, it will further enhance our power in the WTO.

TT: Minister of Economic AffairsLin Hsin-yi (林信義) has given his endorsement to your proposal, but has also said that the idea is not attainable since major trade policies such as the "no haste, be patient" (戒急用忍) and "big three links" (大三通) policies have not been relaxed. How do you react to this?

Siew: The establishment of a cross-strait common market is a long-term goal and will not be attained right away. The concept is a strategic direction and a future goal for the development of cross-strait trade. If the two sides reach an agreement on my proposal, these trade obstacles across the Strait will eventually be resolved.

TT: Can you briefly elaborate on this cross-strait common market?

Siew: [It's aim is] to enhance mutual benefits and economic cooperation across the Strait. It follows the example of the European model, but is definitely not a transplant since our relations with China differ greatly [from relations in the EU].

As we implement step-by-step procedures to accomplish [the common market] along a timeline of 20 to 30 years, economics, not politics, should be the top priority in promoting the market. I hope both sides will put aside their political differences and ideologies.

In terms of measures for its establishment, there are several proposed stages. In the first stage, we should promote the normalization of economic and trade relations across the Strait to remove trade obstacles. Secondly, both sides should coordinate the development of economic rules and regulations with the aim of harmonizing policies in order to reach a Free Trade Agreement. Thirdly, economic integration, including a customs union and monetary mechanism, can then be set up to facilitate the establishment of the cross-strait common market.

TT: Some academics have argued that the concept will be too market-driven to ignore severe political differences with China and have therefore concluded that economic approaches to enhancing cross-strait relations are problematic.

Siew: For the past few years, political approaches to solving the cross-strait impasse have proven unfeasible. The impasse hasled to increasing political confrontation since we have different political positions and political systems.

Where economic interaction is concerned, however, it is based on mutual interest irrespective of governments. It is therefore an inevitable trend for the two sides to become economically closer and to allow cooperation to take place.