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WTO won't guarantee better foreign relations

Taiwan's accession to the WTO last Tuesday won't necessarily result in a breakthrough for extending Taiwan's external relations as China continues to exert pressure on potential allies.

Obstacles still remain in the way of Taiwan signing any free-trade agreements (FTAs) with other countries and for Taiwan's desire to have the EU set up a representative office in Taipei in a timely manner, government and think tank sources said.

Chiang Pin-Kung (江丙坤), president of the KMT's National Policy Foundation think tank, said intimidation from China may stop other countries from signing free-trade agreements with Taiwan.

"Often we are keen on these agreements, but other countries may feel reluctant because of the political pressure [from China]," said Chiang, a former minister of economic affairs under the KMT administration.

Chiang also recalled his uneasy discussion on the topic with Singaporean Prime Minister Goh Chok Tong at the sidelines of the APEC meetings in New Zealand in 1999.

"When I told Goh Chok Tong that Singapore would be a good partner with which Taiwan could sign a free-trade agreement, Goh said he agreed with me in principle but he had to ask another man who had the same surname as me, meaning the PRC," Chiang said.

FTAs seek to lower tariffs and enhance trade between two countries or a small group of countries rather than members of a large group like the 144-member WTO.

Singapore has been an active player in the region in forging free-trade agreements in recent years.

The country struck its most recent deal with Japan -- the first such accord for the larger partner. Japanese Prime Minister Junichiro Koizumi is expected to sign the agreement when he visits Singapore later this month.

Taiwan has set up a task force in the Ministry of Economic Affairs to study the feasibility of free-trade agreements -- even more important after the country's accession to the WTO -- sources said.

On the long-waited establishment of the EU Commission representative office in Taipei, David Lee (李大維), Taiwan's representative to Brussels, said: "The EU's planning in principle to open the office in the latter half of this year.

"My job is to fix my eyes closely on this case and make sure the door to the representative office is open by the end of the year," Lee said.

"The EU Commission's representative trade office in Taiwan will monitor Taiwan's implementation of its market-opening commitments under the WTO," Lee added.

On July 3 last year, the European Commission issued a report on restructuring EU offices overseas that proposed opening a representative trade office "in principle" in Taiwan.

"With Taiwan soon joining the WTO, the commission is expected to play a major role in monitoring market access, the application of WTO commitments and other matters related to its policy," the report stated.

The report targeted Taiwan, Malaysia, Singapore, Saudi Arabia, Cambodia, Laos, Nepal and Paraguay as proposed destinations for opening EU representative offices or sending delegations.

The document also proposed closing EU offices in Antigua and Barbuda, Belize, Comores, the Dutch Antilles, Sao Tome and Principe, Tonga and Equatorial Guinea.

The EU has recently opened a representative office in Cambodia, with the next two set to open in Malaysia and Singapore, government sources said.

Opening an office in Taiwan was relatively low on the list and the timing for the EU to open an office in Taiwan depends on EU budgetary constraints, insiders said.

The EU office in Taiwan, once opened, will remain "unofficial" because of the EU's adherence to Beijing's so-called "one China" policy, insiders said.

The establishment of an EU representative office in Taipei on a reciprocal basis has been high on the Ministry of Foreign Affair's priority list since President Chen Shui-bian's (陳水扁) inauguration in 2000.

Beijing's sensitivity over the conferring of any international recognition to Taiwan has put a severe strain on EU-Taiwan relations, making them rather informal and relatively underdeveloped.
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