Taiwan's decision on whether to allow direct trade with China will be made at the "highest level of government at the critical time," just prior to WTO entry, a senior economic official said yesterday.
A Ministry of Economic Affairs official who requested anonymity denied reports that the government had ruled out invoking a clause under the WTO that could continue to bar direct trade with China, saying a decision on the matter would be made just before entry into the trade body.
Invocation of the clause against China would exclude it from the free trade benefits of the WTO agreement that all other members would enjoy with Taiwan.
Observers have noted that invocation of the article would not be well received by China, who would likely interpret the move as further evidence of the new administration's independence sentiments.
Speculation over the government's intentions over Article 13 surfaced yesterday after it was reported Vice Minister of Economic Affairs Chen Ruei-long (陳瑞隆) said the mechanism restricting importation of goods fron the mainland would be scrapped after Taiwan enters the WTO.
"Cross-strait trade will be governed under the WTO framework, which mandates that restrictions on imports be lifted," said Chen.
Chen however refused to elaborate on to what extent the restrictions would be eased, declining to say whether or not Chinese imports would be treated the same as those from other countries.
Under the current mechanism only 5,777 items or 56.4 percent of all imported goods, are allowed to be imported from China, compared to the 96 percent of all items permitted to be imported from the rest of the world.
Chen said that a definitive decision on easing the restrictions would be made just before Taiwan's WTO entry, which he estimated would occur by May or June next year.
Local media interpreted Chen's remarks as suggesting the government had abandoned any intention of invoking the controversial Article 13, a claim senior economic officials denied yesterday.
According to Chen Tien-chi (
"Not to use Article 13 is a clear expression of goodwill toward China," said Chen.
"To invoke the article would only put aside the question of two-way trade, an issue that is difficult to put off for any length of time," he added.
Chen also agreed to the necessity of revision to the current restrictions on imports from China saying they did not conform with WTO regulations.
But Chen also said that the revisions should come gradually so as to lessen the impact on sectors most vulnerable to cheap imports from China like agricultural products, textiles and simple manufactured goods.
Indeed it was predicted recently by the Council for Economic Development and Planning (
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