'Veep' sees trade pact with mainland open doors for Taiwan

TAIPEI: "Vice President" Vincent Siew yesterday reiterated the importance of a comprehensive trade agreement with the mainland, calling it a "necessary condition" for Taiwan's participation in regional economic integration.

Addressing more than a dozen of Taiwan's representatives to East Asian countries, Siew said the proposed economic cooperation framework agreement (ECFA) is a "threshold" that can "open a lot more doors for Taiwan" and prevent its becoming marginalized and becoming hollowed out in a fast-changing global economy.

"Why is it important?" Siew asked, and explained: because Taiwan has many businessmen on the mainland and huge investments there, he said in a keynote speech at an East Asia working meeting organized by the "Ministry of Foreign Affairs" (MOFA).

"Taiwan needs an opportunity to participate in regional economic integration. The last thing we want is to be left out," he said.

Siew said a trade agreement will help normalize cross-Straits relations. It will prevent Taiwan's economy from being marginalized and ensure its integration into the global economic system, he added.

"While the ECFA is not a full solution, it is a necessary condition" for Taiwan to gain a competitive edge after the ASEAN-China (Association of South East Asia Nations-China) free trade agreement kicks in this year and to start the push for free trade agreements with other Asian economies, he said.

He urged envoys to step up their lobbying of East Asian countries to negotiate FTAs with Taiwan.

If the FTA negotiations progress smoothly, Taiwan should be able to reintroduce the "Go South" policy that it attempted to implement 20 years ago with the aim of integrating with the ASEAN countries.

Interestingly, Taiwan's economic strategy today is similar to that of 30 years ago, said Siew, a veteran economist who has been dubbed by "President" Ma as "the chief strategist" in Taiwan's economic planning.

During his tenure as an official of the "Bureau of Foreign Trade", years ago, Siew said that the Taiwan government wants the economy to be "globalized, liberalized and institutionalized."

"It seems to me that these three aims still stand today. We're striving to achieve the exact same goals," he said.

Even the opposition Democratic Progressive Party (DPP) knows that an emerging mainland holds the key to Taiwan's economic success, but the DPP failed to achieve any breakthrough during its eight years in power, Siew said.

"That is why the current administration intends to be a peacemaker, not a troublemaker," he said.

Siew noted that the biggest threats to Taiwan's economy have not changed in the last few decades. In order to prevent the industry sectors from being marginalized in regional and global markets, Taiwan must continue to upgrade and transform its industries, he said.

"If industries fail to upgrade, companies will either have to shut down or move out (to other markets). If we are marginalized, businesses will not be able to expand their markets," he added.

China Daily/CNA

(HK Edition 01/12/2010 page2)