Taipei, Dec. 20 (CNA) Vice President Vincent Siew called Monday for a Japan-Taiwan free trade agreement (FTA) and closer cooperation between the small- and medium-sized enterprises (SMEs) of the two countries, saying the moves would serve both sides' interests.
"I think the time is ripe for Japan and Taiwan to negotiate an FTA, and I hope Japan will seriously consider the issue, " Siew said in his opening remarks at the 2010 Taiwan-Japan Forum, citing the signing of the Economic Cooperation Framework Agreement (ECFA) with China in June and more recent interest in an FTA with Singapore.
Private sector cooperation also has enormous potential, Siew said, because Japanese businesses have long been known for their advanced technology and Taiwanese enterprises excel in manufacturing and exploring new markets.
Siew noted that Japan was Taiwan's second largest trade partner and its largest source of imports in 2009 as two-way trade reached US$50.7 billion and Taiwan's imports from Japan were worth US$36.2 billion.
Yoshio Okawara, a consultant of the Institute for International Policy Studies, agreed that a Japan-Taiwan coalition would be the best way for both countries to tackle East Asia's fast-changing economic climate.
But the former Japanese ambassador to the United States and Australia also warned that the emergence of the Trans Pacific Partnership (TPP) -- a multilateral free trade agreement that aims to integrate the economies of the Asia-Pacific region -- could create a new economic dynamic in the region.
Scholars and officials also took time at the one-day forum to review the security front in East Asia and addressed the threat of North Korea and a rising China. The U.S.-Japan security pact, they agreed, was one of the pillars of East Asian security.
House of Councilors member Naoki Kazama of the ruling Democratic Party of Japan said Japan welcomed reduced tensions between Taiwan and China but had concerns over a Taiwan-China coalition at the same time.
A Taiwan-China coalition would mean that the East China Sea and the South China Sea could literally become China's "inland waters, " Kazama said.
The scenario would make it impossible for Japan to stop the Chinese Navy from projecting its power to the Pacific Ocean because Taiwan is an integral part of the "First Island Chain, " which is formed by the Aleutians, the Kuriles, Japan, the Ryukyus, Taiwan, the Philippines, and Borneo.
Japan, as one of the major powers in East Asia, could also be crucial to Taiwan in lending its support for Taiwan's participation in the international community, said Bau Tzong-ho, a political scientist at National Taiwan University.
"An isolated Taiwan and the discontent of the people of Taiwan would be detrimental to East Asian stability and does not serve Japan's national interests, " Bau said. (By Chris Wang) enditem/ls