Friday, June 04, 2010

U.S. backs Taiwan's WTO rights to seek trade agreements

Taipei, June 4 (CNA) A United States diplomat on Friday supported Taiwan's right to sign trade agreements with other WTO members, but said that an existing trade and investment framework agreement would be a better vehicle through which to improve U.S.-Taiwan ties.

American Institute in Taiwan (AIT) Chairman Raymond F. Burghardt said in Taipei Friday that the U.S. believes Taiwan's rights as a WTO member should be protected and should not be vulnerable to influence from China.

"The U.S. position has been as clear as anybody that all WTO members have the right and power to sign trade agreements with other WTO members. Period. No need for prior ECFA agreements, no need for permission from China, " said Burghardt at a media roundtable.

Taiwan is trying to sign an economic cooperation framework agreement (ECFA) with China, in part to pave the way for signing free trade agreements (FTAs) with other countries, including the U.S.

But a Chinese Foreign Ministry official recently seemed to undercut the government's argument when he said China would not agree to the idea, sparking controversy over the issue in Taiwan.

Though Burghardt said the U.S. supported the right of every WTO member to sign a trade agreement, he indicated that the U.S. intends to improve bilateral trade ties with Taiwan under the framework of an existing Trade and Investment Framework Agreement (TIFA) rather than a full-fledged FTA.

There is not much enthusiasm in Washington for another FTA after the three previous FTAs with South Korea, Panama and Columbia have failed to pass the U.S. Congress, he said.

Both Taiwan and the U.S. have agreed that the last round of talks under the TIFA -- a deputy ministerial meeting which was held in July 2007 -- was too long ago, and "it would be nice to see that happen sometime before the end of the year," he said.

Meanwhile, he emphasized that the U.S. trade agreements are always "very complete" and different from the ones signed between Asian countries, which are usually "weak and partial." The diplomat reiterated that Taiwan is not ready to fully open its market (to foreign economies) subject to a full free trade agreement, nor did he think that agreement would clear Taiwan's Legislature.

If Taiwan is seeking to sign FTAs with other countries, Asian countries will be better choices because it will be asked for less of a market opening from those countries than the U.S., Burghardt suggested.

Burghardt also confirmed that three U.S. senators -- Dianne Feinstein (D-Calif.), Kay Hagan (D-NC) and Mark Udall (D-Co.) -- will visit Taiwan on Saturday, the first visit by U.S. senators since President Ma Ying-jeou took office in May 2008.

Burghardt said the visit will be "short and unofficial." (By Chris Wang) enditem/ls