Taiwan on Sept. 22 finally filed its application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) — using the name “Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.” The application was made after consulting with the CPTPP’s 11 members, and concluding that the time and conditions for the bid were right.
Beijing submitted its application to join the CPTPP on Sept. 16. Despite serious concerns over China’s system of government and regulations, with many countries doubting whether it is ready for the trade bloc, China’s move casts uncertainty over Taiwan’s application. When seeking CPTPP members’ support, Taiwan — in addition to demonstrating its capacity to move toward a more open economy — must also be wary of political interference from Beijing.
CPTPP member nations have a population of nearly 500 million, accounting for 7 percent of the world’s population, and a combined GDP of more than US$11 trillion, making up 13.1 percent of global GDP. The trade value with CPTPP members takes up more than 24 percent of Taiwan’s total trade value; CPTPP members such as Japan, Malaysia, Singapore and Vietnam are among Taiwan’s primary trading partners.
If Taiwan joins the CPTPP, its market would expand through tariff reductions and other measures, while increasing economic and trade ties with member countries. This would be key for Taiwan to diversify market risks and deepen regional economic integration.
Government assessments show that joining the CPTPP would increase GDP cumulatively by more than 2 percent, and although the agriculture and auto parts industries would likely be affected, the advantages outweigh the downsides. The government would need to find ways to reduce the negative effects of integrating with the trade pact.
Having received Taiwan’s application, the CPTPP Commission is to set up a working group to initiate a review. The applicant country must negotiate with each CPTPP member to work toward a more open market.
As Japan is one of the leading members of the group, and this year’s chair of the commission, it might ask Taiwan to lift its ban on imports of food products from regions near the Fukushima Dai-ichi nuclear power plant after its 2011 disaster.
Resolving the issue has been hampered by opposition parties in the past few years, and President Tsai Ing-wen’s (蔡英文) administration has been unable to make a decisive move. The ban was extended for two years by a November 2018 referendum, which has seriously slowed Taiwan’s pace of internationalization.
Although the extension has expired, the Democratic Progressive Party government is still constrained by domestic politics and has not moved to lift the restrictions on Japan; this is a major obstacle for Taiwan to join the CPTPP.
The US government on Sept. 22 announced that it would lift all restrictions on imports of food products from Japan established in the wake of the nuclear disaster. Then-Japanese prime minister Yoshihide Suga said the US’ move was of great significance in encouraging other countries to follow suit. Taiwan submitting its CPTPP bid the same day indicates that the Tsai administration has finally decided to address the issue.
Taiwan, China, Hong Kong, Macau and South Korea are the only countries and regions that still impose comprehensive restrictions on food imports from Fukushima Prefecture and the surrounding area. Taiwan should not be ignorant of international standards in continuing this unreasonable practice that undermines its friendship with Japan and hinders its efforts to deepen regional economic integration.
The CPTPP is not only a multilateral economic and trade agreement, it is also an important, strategic method of countering China. The trade pact evolved from the Trans-Pacific Partnership, which was the most important component of former US president Barack Obama’s “pivot to Asia,” an effort to consolidate Washington’s relations with Asia-Pacific countries.
After former US president Donald Trump’s administration withdrew the US from the trade group in 2017, former Japanese prime minister Shinzo Abe’s government took over its leadership, transforming it into the CPTPP. Japan has adopted an open attitude toward countries and regions that meet its “high standards,” seeking the CPTPP’s expansion and growth. The UK in August also applied for CPTPP membership.
With the rising threat posed by China, Japan has become the US’ most important strategic partner in maintaining peace and stability in the Indo-Pacific region. In the COVID-19-pandemic era, restructuring supply chains has become a national security and economic strategy of Japan, the US and other countries.
Participation in the CPTPP would help Taiwan improve its economic security and avoid being marginalized, while consolidating strategic cooperation with its democratic allies. This is why Taiwan filed to join the group, and why Japan not only welcomed it, but emphasized that the two nations share the basic values of freedom, democracy, human rights and the rule of law.
As for Beijing’s application, although some have questioned whether it could meet the CPTPP’s high standards for inclusion, China might use its old tricks of economic incentives or coercion to win the support of some members, and leverage its leading position in the Regional Comprehensive Economic Partnership to weaken anyone who tries to contain China’s economy.
China’s participation in the CPTPP might also generate resistance to Taiwan’s bid. During consultations in preparation for Taiwan’s CPTPP application, some members reported that there was pressure from China and hoped that Taiwan would do nothing to rock the boat.
Beijing has also launched deployments to member nations, such as Chinese Minister of Foreign Affairs Wang Yi’s (王毅) visit to Singapore — which would next year chair the CPTPP Commission. After the visit last month, Wang said that Singapore “views today’s China in an objective and rational manner.” China has evidently worked hard to win Singapore’s support.
With applications from Taiwan, the UK and others, the CPTPP has attracted more free economy countries, bringing it more in line with its goal of free trade and openness. China’s intention of using its political and economic force to infiltrate the CPTPP has brought uncertainties to the agreement.
In determining whether countries applying for CPTPP membership meet the trade group’s high standards, whether members can “view today’s Taiwan in an objective and rational manner” without mixing Taipei-Beijing politics would be a test of the CPTPP itself.
Translated by Lin Lee-kai
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