President Chen Shui-bian (陳水扁) exchanged greetings and shook hands twice with US Sec-retary of State Colin Powell as he attended the state banquet arranged by Panamanian President Mireya Moskoso. This Chen-Powell meeting was made possible thanks to the Panamanian government's meticulous arrangements. This is the most rewarding part of Chen's trip to Panama.
Although Taiwan and Panama have maintained relatively stable relations, rumors of discord have surfaced every now and again.
Taiwan is at a disadvantage competing with China in Panama. In terms of economic statistics, China enjoys a far closer relationship with Panama than does Taiwan. China-Panama bilateral trade in 2001 reached US$1.241 billion, while the trade volume between Taiwan and Panama that same year was US$120 million.
China is the third-biggest user of the Panama Canal. Hutchison Whampoa, which operates the ports of Cristobal and Balboa at each end of the Panama Canal, enjoys close ties with China. The business fees the company pays annually are very important for the Panamanian government. Under these circumstances, Taiwanese diplomats have been under great pressure, especially after 1996 when China and Panama set up trade representative offices.
There was a breakthrough in August, however, when Taiwan and Panama signed a free-trade agreement (FTA), an important indicator of bilateral relations.
Every country has political and economic considerations when signing FTAs. Taiwan gave a great preferential deal to Panama's agricultural produce and even promised to offer an annual duty-free import quota of 5,000 tonnes of sugar. Panama could even make Taiwan its springboard to enter the Asian market.
For the Taiwanese govern-ment, however, the import value from Panama only totals US$4.8 million, accounting for a small proportion in the nation's foreign trade. Therefore, after the FTA takes effect, its impact on the Taiwanese market will be limited.
But this FTA won't just benefit Panama. The Taiwanese government also benefits from expanding businesses into American countries. Moreover, Taiwanese businesspeople investing in Panama enjoy the same treatment extended to Panamanian nationals. Panama also promised to open up its finance, land transportation, tourism, logistics and value-added telecommunications service industries.
In general, the FTA covers three main areas: trade liberalization, expedition and economic cooperation. If these can be implemented step by step, Taiwan-Panama relations will gradually develop into a more refined network. Our efforts made Panama's first Vice President Arturo Vallarino call off a trip to Beijing on Aug. 30 at the last minute. This symbolizes the fruit we have harvested from the long-term cultivation of diplomatic relations with Panama.
Chen's transit stop in the US en route to Panama implies a possibility that we can make use of the US factor. Although the US has formally returned the Panama Canal to Panama, the Panama Canal Treaty of 1977 stipulates that the US shall have primary responsibility to protect and defend the canal when facing any armed attack or other actions that threaten the security of the canal or of ships passing through it. It suggests the intervention of the US anytime in the name of security. Apart from that, Panama's deep dependence on US trade and investment has forced the country to heed the US' stance.
In the future, Taiwan should closely integrate its diplomatic efforts in the US with those in Panama and other Central American countries so as to bring its overall strength into full play.
Teng Chung-chian is a visiting scholar at the Sigur Center for Asian Studies at George Washington University and a professor of diplomacy at National Chengchi University.
Translated by Jackie Lin
A gap appears to be emerging between Washington’s foreign policy elites and the broader American public on how the United States should respond to China’s rise. From my vantage working at a think tank in Washington, DC, and through regular travel around the United States, I increasingly experience two distinct discussions. This divergence — between America’s elite hawkishness and public caution — may become one of the least appreciated and most consequential external factors influencing Taiwan’s security environment in the years ahead. Within the American policy community, the dominant view of China has grown unmistakably tough. Many members of Congress, as
After declaring Iran’s military “gone,” US President Donald Trump appealed to the UK, France, Japan and South Korea — as well as China, Iran’s strategic partner — to send minesweepers and naval forces to reopen the Strait of Hormuz. When allies balked, the request turned into a warning: NATO would face “a very bad” future if it refused. The prevailing wisdom is that Trump faces a credibility problem: having spent years insulting allies, he finds they would not rally when he needs them. That is true, but superficial, as though a structural collapse could be caused by wounded feelings. Something
Former Taipei mayor and Taiwan People’s Party (TPP) founding chairman Ko Wen-je (柯文哲) was sentenced to 17 years in prison on Thursday, making headlines across major media. However, another case linked to the TPP — the indictment of Chinese immigrant Xu Chunying (徐春鶯) for alleged violations of the Anti-Infiltration Act (反滲透法) on Tuesday — has also stirred up heated discussions. Born in Shanghai, Xu became a resident of Taiwan through marriage in 1993. Currently the director of the Taiwan New Immigrant Development Association, she was elected to serve as legislator-at-large for the TPP in 2023, but was later charged with involvement
Out of 64 participating universities in this year’s Stars Program — through which schools directly recommend their top students to universities for admission — only 19 filled their admissions quotas. There were 922 vacancies, down more than 200 from last year; top universities had 37 unfilled places, 40 fewer than last year. The original purpose of the Stars Program was to expand admissions to a wider range of students. However, certain departments at elite universities that failed to meet their admissions quotas are not improving. Vacancies at top universities are linked to students’ program preferences on their applications, but inappropriate admission
RSS