Taiwan’s new EU Ambassador wants: ‘a more far-reaching EU-Taiwan relationship’

by N. Peter Kramer

Mr. Tung, speaking at an event to mark his arrival in Brussels, told a 200-strong audience that ‘tremendous progress’ has been made in EU-Taiwan relations in ‘various fields’ in recent times but said that he is determined to pursue ‘a more far-reaching relationship’. In other words, Mr. Tung is aiming at an Economic Cooperation Agreement between his country and the EU.

The ambition of Taiwan to have ‘a more far-reaching relationship’ with the EU was also mentioned by President Ma Ying-jeou when members of the European Parliament visited Taipei in March. “As the EU is Taiwan’s fourth largest trading partner and leading source of foreign investment, while Taiwan is the EU’s sixth largest trading partner in Asia, an Economic Cooperation Agreement (ECA) is needed to further cement the collaborative relationship’ and he stretched that his country has now signed or is negotiating economic cooperation agreements with its top three trading partners. ‘Three years ago Taiwan inked a break-through Cross-Straits Economic Agreement (ECFA) with the People’s Republic of China. Last year we concluded an investment protection pact with Japan and we are now preparing to resume talks with the US under the Trade and Investment Framework Agreement (TIFA)’, Taiwan’s President noted.

‘Economic integration important for de-escalating East Asia’

In April, during a seminar ’Taiwan’s role in regional security in East Asia’, Ambassador Kuoyu Tung said that all parties involved should acknowledge their responsibilities, not only China but also Taiwan, and the international communities.
'No one should be demonised. Taiwan is a living proof that a mature democracy is possible in a Chinese speaking society and we hope we can someday be a model for the democratisation process of our neighbours’.

MEP Charles Tannock, chairman of the European Parliament-Taiwan Friendship Group stated that further economic integration of the region and international trade agreements are of major importance in de-escalating tensions in East-Asia.

‘Thanks to the efforts of President Ma’s administration, Mainland China - Taiwan relations went from confrontation to conciliation. But now Taiwan is left behind. Other countries in the region are signing or are negotiating Free Trade Agreements with the EU. We don’t want to see peaceful and democratic Taiwan suffering from its competition. Taiwan as a friend of peace and democracy is a natural partner of the EU’.
Brian McDonald, former head of the EU Trade Office in Taipei and retired EU Ambassador to Korea, agreed with Mr. Tannock and made even a step further: ’Growth rates in Taiwan are under pressure not only caused by the global financial crisis but also by a lack of trade agreements. The Chinese market alone, although growing fast, is not capable of keeping the Taiwanese economy alive. The international community therefore has a responsibility towards Taiwan, a full member of WTO’.

Taiwan and the US have started further talks about strengthening bilateral economic cooperation under the TIFA. An American interagency delegation including officials from the Departments of State, Commerce and Agriculture and headed by Deputy US Trade Representative Demetrios Marantis visited Taipei last month.

Why is the EU still backing off a trade agreement with Taiwan?

The European Parliament is a longtime supporter of a trade agreement with Taiwan. Is the European Commission (especially DG Trade of Commissioner De Gucht) afraid that such an agreement will affect EU’s economic ties with China? Or are there, behind the Brussels’ scenes, EU member states blocking it for the same reason? But a Taiwan freely moving on the global market would also benefit China as Taiwanese investments in China are considerable…