An EU commissioner said on Monday that the timing was not right for the EU to start negotiations with Taiwan on a free-trade agreement (FTA) amid concerns over the repercussions of such talks on cross-strait relations and the EU’s relations with China.
“We must remember the very unique situation of Taiwan and particularly its relationship with China,” said Dacian Ciolos, the EU commissioner responsible for agriculture and rural development.
“At this stage, it’s not appropriate to start a negotiation process for a free-trade agreement with Taiwan,” Ciolos said when concluding a statement provided by the EU Trade Commission at a debate in the European Parliament in Strasbourg, France, on Monday.
Ciolos attended the debate titled “Improving EU-Taiwan trade relations” — the first of its kind in several years — on behalf of EU Trade Commissioner Karel De Gucht, who was unable to attend.
Within the EU’s “one China” policy, trade enhancement measures between the EU and Taiwan would be a framework agreement to be “fleshed out in certain areas,” as opposed to an agreement on free trade, Ciolos said.
The reason why the EU held the position, Ciolos said, was that “we must avoid a full stop, which could endanger the relationship between Taiwan and China, which can also call into question our own relationships with Taiwan and China.”
Last year, the EU Commission presented a blueprint for its trade and investment for 2010 to 2015 in a communication to the European Council and parliament titled Trade, Growth, and World Affairs, which said the EU had to strengthen its relationships with strategic partners, such as the US, Russia and Japan, and to recognize the importance of emerging economies, particularly in Asia, without mentioning Taiwan.
“Taiwan has not been mentioned as a priority, but this communication has already given us a very useful framework for this relationship,” Ciolos said.
Ciolos said the existing trade consultation, held annually between the European Commission and Taiwan, enabled the EU to further develop its relationship with Taiwan — as long as the relationship between Taiwan and China goes well.
“It’s a tiny bit early to know precisely which opportunities this [Economic Cooperation] Framework Agreement [ECFA] will create for European industry, but we must make sure that if we strengthen our trade relations with Taiwan and if Taiwan strengthens its relations with China, this is going to give more opportunities for our businesses,” he said.
Several members of parliament said they were disappointed by the commission’s position, while others argued that the EU should not neglect Taiwan for fear of “angering” China.
Charles Tannock, chairman of the European Parliament-Taiwan Friendship Group, said he strongly believed the EU should pursue a free-trade type agreement with Taiwan, which should probably be known as a “trade enhancement measure.”
“Such an agreement is in the long-term interests of both sides, and the cake grows bigger for both as synergies and opportunities for joint ventures and free flow of investments can carry on in both directions,” Tannock said.
The EU should respond positively and judge Taiwan solely on its economic merits, without taking into consideration what is going on in ASEAN countries or any possible political objections from Beijing as and when Taiwan is ready to negotiate, he said.
Tannock said the EU should “help to ensure Taiwan’s long-term economic prosperity by helping Taiwan to diversify its global economic perspectives” because “Taiwan does not want to become over-dependent on one economic partner [China].”
Sean Kelly, a member of the European People’s Party, said he was disappointed at the tone of Ciolos’ response to “this very important topic.”
“I think the message has to go out loud and clear that we want a little more action, a little more pluck, from the commission than what we have seen and certainly from what we have heard this evening. I get the impression that there is reluctance, that China might not be happy with us if we are engaging too much with Taiwan,” Kelly said.
“We can have a good relationship with China, we want to have a good relationship with China, but that must not in any way impede us from having a good relationship with Taiwan and developing trade links with Taiwan. We have much to gain,” Kelly said.
Niccolo Rinaldi, a member of the Alliance of Liberals and Democrats for Europe, said he felt “there is some degree of hypocrisy and some degree of prevarication in what Ciolos said ... There is a principle we should always stand by, particularly in trade.”
“We have trade relations with Taiwan and Taiwan will be negotiating FTAs with many countries in the future. China is very irritated by our approach to Taiwan, but it may learn to be pragmatic,” Rinaldi said.
Laima Liucija Andrikiene of the European People’s Party said closer economic ties with Taiwan “do not contradict the EU’s ‘one China’ policy.”
“You may know that Taiwan has the status of an independent customs territory. It has been a full member of the WTO since 2002, as well as a full member of APEC and the Asian Development Bank,” Andrikiene said.
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