Mon, Sep 22, 2008 page3

• ‘Aid for Trade’ initiative could benefit Taiwan

  • STAFF WRITER, WITH CNA
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  Taiwan should seek to bolster diplomatic ties with developing nations via the “Aid for Trade” initiative espoused by the WTO in 2005, the Council for Economic Planning and Development (CEPD) said yesterday.

  Since the initiative was proposed at a WTO ministerial meeting in Hong Kong in December 2005, the world’s major economic powers, including Japan, the US and the EU, have committed to giving financial aid via multilateral mechanisms such as the WTO and the World Bank to help developing or least-developed countries expand business opportunities and trade prospects, a CEPD official said, who declined to be named.

  “Taiwan should go with the trend to use this ‘Aid for Trade’ initiative to increase bilateral cooperation and build mutual trust with other nations, whether or not they maintain formal diplomatic relations with the country,” the official said. “By doing so, the nation can also materialize President Ma Ying-jeou’s (馬英九) ‘modus vivendi’ diplomatic strategy.”

  Ma, who took office on May 20, has been touting his “modus vivendi” diplomatic strategy to seek more international space for Taiwan. Ma has said the goal of the approach is to safeguard Taiwan’s rights while consolidating diplomatic relations with its allies and restoring mutual trust with countries that heavily influence Taiwan even in the absence of formal diplomatic ties.

  Taiwan is a full WTO member.

  The WTO-initiated “Aid for Trade” program helps developing countries, and least-developed countries in particular, to build the trade capacity and infrastructure they need to benefit from trade opening.

  Part of the program for overall Official Development Assistance (ODA) — grants and concessional loans that key member countries of the Organization for Economic Cooperation and Development (OECD) have been working on over the past several years — “Aid for Trade” targets trade-related programs and projects.

  It is designed mainly to help the world’s 40 to 50 least-developed countries to develop convenient and speedy trade systems, including nurturing customs officials and officials for international trade negotiations; lowering cross-border trade barriers and strengthening infrastructure development relevant to international trade, such as the development of port facilities and highways, the official said.

  Taiwan has accumulated rich experience and know-how after decades of providing assistance to its diplomatic allies — efforts that include providing consultancy services for small and medium-sized enterprises, vocational training, agricultural and fishery aid and aid to help the country’s allies build their own telecommunication and other high-technology infrastructure, he said.

  Taiwan has made significant contributions in the international domain, offering training in trade facilitation and customs procedures to less-developed countries, as well as helping improve their port facilities, he said.

  The official also quoted an OECD report from last year as indicating that the amounts that OECD member countries committed to providing to the least-developed countries in trade-related ODA increased to US$67.5 billion from US$51 billion between 2002 and 2005.

  OECD data shows that trade-related ODA commitments have been running at about US$25 billion to US$30 billion a year over the past few years, which is around 30 percent of the total ODA.

  Meanwhile, figures from the Ministry of Foreign Affairs and the OECD show that Taiwan provided US$515 million in international assistance last year, accounting for 0.13 percent of its GDP, while advanced and developed countries averaged 0.28 percent of GDP in foreign aid expenditures.
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