Strasbourg, 27/09/2011 (Agence Europe) - Many MEPs from different political groups at the European Parliament spoke in favour of a free trade agreement to strengthen relations between the EU and Taiwan (the EU's 14th largest trade partner). Afraid of offending China, the Commission is hesitating and appears more in favour of negotiating sectoral agreements with Taipei.
On the initiative of Laima Liucija Andrikienë (EPP, Lithuania), Metin Kazak (ALDE, Bulgaria) and Charles Tannock (ECR, United Kingdom), the plenary debate on trade relations between the EU27 and Taiwan, which took place on Monday 26 September in Strasbourg, demonstrated a clear preference from MEPs for negotiating a free trade agreement. Andrikienë immediately emphasised the essential role played by Taiwan in the global supply chain for ICT and from which the EU clearly benefits in the supplies of top range component parts it receives: “Taiwan is an important trade partner, but our trade relationship has recently performed well below its potential. Large gains for European companies can be expected in terms of exports of goods and services, as well as foreign direct investment.” The Lithuanian MEP added: “At the same time, the Taiwanese export structure does not threaten any of Europe's most sensitive exports, such as automobiles and agriculture”. Kazak pointed out that “the EU is the biggest investor on the island and invested $1.2 billion in 2010. A second-generation agreement with Taiwan would help establish ties with its closely linked supply chains with Asia and ensure better access for EU enterprises to markets in the Asia-Pacific region”. These MEPs consider that the EU has a lot to gain from a triangular trade relationship that also includes China. Taiwan also enjoys the status of an independent customs territory and has been a member of the WTO since 2002, as well as APEC, together with China. Andrikienë said: “Consequently, closer economic ties do not contradict the EU's One China Policy.” Tannock stated: “I strongly believe that the EU should pursue a free-trade type agreement with Taiwan. Such an agreement is in the long-term interests of both sides. The EU should respond positively and judge this country solely on its economic merits, without taking into consideration what is going on in the other Asean countries or any possible political objections from China.” Speaking on behalf of the EFD, William Dartmouth also gave his support: “We should not, and must not, neglect future trade agreements with Taiwan.”
Despite the progress made by New Zealand, Singapore, India, Indonesia and the Philippines, which are all negotiating or planning to negotiate a bilateral trade pact with Taipei, the EU is still hesitating. This is obviously caused by the Commission's fear of offending Beijing. Speaking on behalf of his colleague, Karel De Gucht, responsible for trade policy and who was absent on Monday, the commissioner for agriculture, Dacian Cioloº would only state that “Taiwan is our 14th largest trade partner, with a trade balance in its favour, whilst the EU is the biggest foreign investor in the country. We want to effectively strengthen this relationship and develop it further… although we do not have a formal agreement with Taiwan, we do have a trade dialogue that is working well and which will allow us to discuss our future relations. With regard to trade relations with Taiwan and the world in general, the most recent event involves negotiations for a framework agreement for economic co-operation with China. We consider that this agreement is a positive and important step forward. Good relations between China and Taiwan are of crucial importance but in practical terms and within the context of our One China Policy.” Nicolas Rinaldi (ALDE) stated that “there is a certain degree of hypocrisy and hesitation, even with what the commissioner is telling us”. The MEP urged the Commission to take into account the fact that “Taiwan exists as a de facto sovereign state and is a full member of the WTO. It trades with the EU and has negotiated several free trade agreements with third countries”. The Italian MEP added: “China always responds in a very irritable way when we approach Taiwan but we think that it can in subsequent phases adapt itself with a certain pragmatism.” Tannock said that he was disappointed that the European Commission had only envisaged sectoral agreements in the industrial sector with Taipei. The Parliament, however, is more advanced in respect of its future relations with Taiwan, following a consultation between the Commission and the Taiwanese authorities on 25 October. (EH/transl.fl)