By Martin Banks - 17th August 2010
Increasing trade across the Taiwan straits will benefit European counterparts
European Centre for International Political Economy
A leading Brussels think tank has said that European companies stand to gain from a landmark trade deal between China and Taiwan.
The economic cooperation and framework agreement (ECFA) was signed by the two Asian neighbours on 29 June and paves the way for much closer trade links between the two.
But in a key position paper, the European Centre for International Political Economy (ECIPE) said the deal would bring "larger trade benefits" for European enterprises.
It says the deal would convert mainland China from a production base to a core market for European businesses in Taiwan.
"Increasing trade across the Taiwan straits will benefit European counterparts," it says.
"A more consolidated trade market in East Asia is in the making. Taiwan is one of the largest investors in mainland China while mainland China is Taiwan's biggest trade partner.
"This trade tie will bring larger trade benefits to European counterparts."
The report adds, "Taiwan's challenge is to get itself on the EU radar screen so that the latter starts to think seriously about options to strengthen EU-Taiwan trade relations.
"The signing of ECFA now provides a window of opportunity for Taiwan to pursue FTAs with its key trading partners, including the EU.
"The time may soon be ripe for such an initiative. But it will not succeed if there is no green light of sorts from China or if the EU feels it would compromise its all important relationship with China.
"Taiwan must reassure both the EU and China that any EU-Taiwan negotiations will be purely commercial and without wider political implications."
Meanwhile, a senior Taiwan official in Brussels says its government will continue to take a "pragmatic approach" toward Taiwan's participation in specialised agencies of the United Nations this year.
Patrick Chen-Tai Wang, director of the information division at the Taipei representative office to the EU, said that as with last year Taiwan will not make any formal UN bids during the annual session of the UN general assembly due to open on 14 September in New York.
However, he said this does not mean that the government has given up on its effort to participate in the UN but rather indicates a change in strategy in accordance with changes in cross-Taiwan Strait and international situations.
Since 1993,Taiwan has been trying - unsuccessfully, due to Beijing's objections - to have the UN discuss the issue of its representation.
In 2008, the country shifted its strategy to promoting a bid to "participate meaningfully in the activities of specialised UN agencies" in line with Taiwan president Ma Ying-jeou's policy of flexible diplomacy.
Taiwan has since 2009 promoted a campaign to take part in the UN framework convention on climate change and the international civil aviation organisation.
Wang said that over the past year, Taiwan's bids to join the groups have won the support of many countries.
For example, he said, the US house of representatives adopted a resolution on 29 July calling for observer status for Taiwan in the aviation group.
This followed a similar move by the European parliament in March. A resolution adopted by MEPs calls for Taiwan to be allowed to participate in UN specialised agencies.
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