Veteran MEP calls for close trade ties with Asia


By Martin Banks
- 18th November 2010
Taiwan is the only true democracy in South East Asia

Astrid Lulling

Veteran centre-right MEP Astrid Lulling has thrown her weight behind calls for the EU to commence trade negotiations with more Asian countries.

In particular, the Luxembourg member wants Taiwan to be "next in line" for a Free Trade Agreement (FTA) with the EU.

The demand follows the recently-signed EU-Korea FTA, the first with a south east Asia country.

Tentative talks on possible similar deals with other countries in the region, including Vietnam, Singapore, India and Malaysia, are underway.

But Lulling, who is the longest serving MEP in parliament, believes that "serious consideration" should be given to forging closer trade links, including an FTA, with Taiwan, the EU's fourth largest trading partner in Asia.

Speaking in parliament on Thursday she said, "It makes a lot of sense for both the EU and Taiwan.

"Of course, China will probably disapprove but the EU should not allow itself to be pushed around by China.

"Taiwan is the only true democracy in South East Asia and there is no doubt the EU could gain as much as Taiwan from an FTA.

"Taiwan and the EU already have significant trade and investment relations. European business has a strong presence in the Taiwanese market and Taiwan firms represent a considerable part of the importation of ICT goods to Europe.

"There is also an economic potential for enhancing the bilateral relations with Taiwan and for integrating with the Chinese market in a better way through Taiwan."

Her comments followed a similar call by Sheng-Chung Lin, deputy minister of economic affairs in Taiwan.

Addressing a Brussels seminar on EU trade policy in Asia on Wednesday, he said, "In the wake of the Korea deal surely the time is right for the EU to give serious consideration to a similar agreement with Taiwan.

"Taiwan is a close ally of the EU and such a deal would be mutually beneficial.

"It would provide the EU with a trusted and valuable partner in what is a vibrant and energetic part of the world.

"Closer trade ties with Taiwan offer tremendous potential to the EU."

The respected European centre for international political economy, which organised the event, endorsed his comments.

Its director, Fredrik Erixon said that enhanced trade ties with Taiwan were "an attractive idea."

He added, "The rise of Asian countries like Taiwan is one of the great success stories of the last decade and Taiwan is an important partner for the EU."

Meanwhile, Taiwan's president Ma Ying-jeou has expressed concern over China's continued obstruction of the efforts by Taiwanese civic groups to participate in international events.

He said "Our NGOs (non-governmental organisations) have recently encountered harassment and obstruction from mainland China and this has upset many people in Taiwan.

His remarks came after a Chinese delegation attempted to downgrade the status of the Taiwan delegation at an international film festival in Tokyo last month.

Ma described the incident as "the tip of the iceberg."

The conflict arose when the head of the Chinese delegation insisted that the Taiwanese delegation should attend the event under the name of either "Taipei, China" or "Chinese Taipei" instead of "Taiwan", as was the case at previous festivals.

The incident drew a protest by the Taiwan government.

ChinesePresident Hu Jintao said on 13 November that if both sides could handle such matters through "communication and coordination, " they could avoid unnecessary friction and solve problems in an appropriate way.

During the interview with the CNA, Ma urged Beijing authorities to carefully assess the negative impact of such rows.

He said that "it would be difficult to improve cross-strait relations" if Taiwan's NGOs keep encountering obstruction by China at international events, adding that these organizations are usually among the most active in Taiwan.

"It took us a year and a half to negotiate and sign an ECFA (economic cooperation framework agreement)," Ma added, referring to the landmark cross-strait trade pact aimed at further liberalising trade in goods and services.

"However, these achievements would quickly evaporate if one or two other such incidents occur," he said.

On Taiwan's participation in international organisations, Ma puts an emphasis on the virtuous-cycle theory, which he believes would help deepen cross-strait ties.

As an example of the results that can be produced by such acycle, he cited Taiwan's participation as an observer in the annual World Health Assembly (WHA).

Since Taiwan became an observer in May 2009, there has been positive interaction at the WHA between Taiwanese and Chinese officials and on the sidelines of the meeting, they discussed cooperation in the area of health.

The president added, however, that it would be difficult for the cross-strait relationship to develop if Taiwan continues to be isolated.

Since taking office in May, 2008, Ma has pursued a pragmaticapproach to diplomacy and has sought to improve relations between thetwo sides of the Taiwan Strait.

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