Editorial

Tackling a challenge

(CNA)

• Publication Date：06/16/2012
• Source： Taiwan Today

The need to ensure Taiwan is not left on the sidelines as the Asia-Pacific region embraces greater economic integration is one of the most pressing challenges facing the ROC government today. While there are a number of ways to tackle this challenge, the most effective is building on strong ties with major trading partners and hammering out state-of-the-art economic and investment pacts.

This approach, which has been championed by the Ma Ying-jeou administration since taking office in May 2008, forms the backbone of the government’s economic policy. It has already paid handsome dividends for Taiwan in the guise of the landmark Cross-Straits Economic Cooperation Framework Agreement (ECFA), as well as the arrangement on investment liberalization, promotion and protection with Japan.

But even more impressive progress is expected to be made in the days ahead. The government is negotiating an economic cooperation agreement with Singapore and New Zealand. Other countries also seriously considering the merits of entering into similar pacts with Taiwan include India, Indonesia and the Philippines.

In promoting Taiwan’s pedigree as an ardent free-trader, the government is sending a strong message that participation for the island in regional economic integration is a win-win situation for all. This is further underscored by Taiwan’s important role in the global supply chain for information communications technology products, one that continues to grow as local firms expand investment in mainland Chinese and Southeast Asian manufacturing operations.

(Photo: Huang Chung-hsin)

While concluding ECAs with Asia-Pacific economies is a priority for the government, the need to commence free trade agreement negotiations with Japan and the U.S. has not been overlooked. The government views both longstanding friends as ideal partners for FTAs and understands that these pacts are necessary precursors to taking part in more expansive undertakings such as the Free Trade Area of the Asia-Pacific and Trans-Pacific Partnership.

The FTAAP, which Asia-Pacific Economic Cooperation members agreed to take concrete steps toward realizing at their 2010 leaders’ meeting in Yokohama, Japan, would do much to level the playing field for Taiwan. Similarly, the TPP—a trade agreement between Brunei, Chile, New Zealand and Singapore now being widened to include Australia, Malaysia, Peru, the U.S. and Vietnam—is an effective way of delivering increased commerce, investment flows and growth to the island.

As the Asia-Pacific region becomes a bona fide engine of growth in the world economy, the government will continue highlighting the need for Taiwan’s involvement in regional integration and potential to be a center for trade and commercial activity. The island can play an important role in reducing trade barriers and expanding cross-border economic exchanges, a process that delivers domestic prosperity while liberalizing markets and freeing up global trade.

Write to Taiwan Today at ttonline@mofa.gov.tw