Former American Institute in Taiwan (AIT) director William Stanton yesterday urged Taiwan to “overcome [its] protectionist feelings” in trade agreements and negotiations, because “you’ve got to give if you’re gonna get.”
Stanton was speaking on a panel organized by the Columbia Alumni Association of Taiwan exploring “Taiwan’s crises and opportunities” in a “new world order in the [US President Donald] Trump era.”
Democratic Progressive Party (DPP) Legislator Hsiao Bi-khim (蕭美琴) and Chinese Nationalist Party (KMT) Legislator Jason Hsu (許毓仁) were also on the panel.
“Taiwan should always be working toward a bilateral trade agreement with the US even if the Trans-Pacific Partnership [TPP] falls through the floor,” Stanton said. “You’ve got to expand your diversity.”
“Taiwan’s GDP is less than 1 percent dependent on agriculture,” he said. “You are a trading nation; 70 percent of your GDP depends on export of goods and services, so you have to export, but it’s not pigs or pork that you’re exporting. You have to think realistically about what your strengths and weaknesses are.”
Stanton said he did not speak on the behalf of the US government, but as a friend of Taiwan.
Hsiao earlier said the greatest challenge for Taiwan in trade and economic relations with the US is the change in the US’ general strategy regarding Asia, which has led to the end of US participation in the TPP.
“The US’ withdrawal from the TPP compels us to rethink our strategy and refocus on bilateral trade relations, not only with the US, but also with China, Japan and other TPP members in Southeast Asia,” Hsiao said.
“In terms of bilateral trade possibilities [with the US], it is not clear even after we visited Washington to figure out what was happening there,” Hsiao said, referring to a cross-party delegation of legislators who visited the US in the middle of last month.
There is indeed a degree of uncertainty over the Trump administration’s Asia policy, “but a few things are clear, that is that we have not been ruled out as a partner for the US as it considers a new set of bilateral trade negotiations. It is important for us to grasp that opportunity,” she said.
“It is a two-way street” in that potential bilateral agreements with the US would not only rely on Washington to make Taiwan a priority on the negotiation list, but also “certain regulatory adjustments in our domestic infrastructure, as well as our dealings with politically sensitive issues such as agricultural products and other less politically fumed, but equally difficult issues such as pharmaceutical, digital economy and technology services,” she said.
Hsu said that during the delegation’s visit, “we asked if Taiwan could be at the table for the next round of trade negotiations, but there are several factors that play into this, for example the pork import issue, which is I think the most significant factor.”
“However, during one of our meetings it was suggested that Taiwan should come up with its own trade framework instead of waiting” on Trump, Hsu said.
Another opportunity for Taiwan Stanton raised was an “increased likelihood of arms sales.”
“I think Taiwan now has the best chance ever to get whatever it wants if it goes for it,” Stanton said. “Why? Well you may remember [what Trump said on Twitter] after he got criticized for his phone call with President Tsai Ing-wen [蔡英文]: ‘Interesting how the US sells Taiwan billions of dollars of military equipment, but I should not accept a congratulatory call.’”
“It’s on his mind that [the US] is making money in Taiwan,” Stanton said.
“And, if it comes as predicted as [former AIT head] Steve Young said [that] there is a new AIT facility, and I think it’s a great opportunity that Taiwan should seize to celebrate and promote Taiwan-US relations to invite high-level US visitors from all walks, but also initiate new initiatives,” he added.
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