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Taiwan slips from
position as one of US¡¦ top partners
By William Lowther / Staff reporter in Washington
The relative importance of Taiwan as a US trading partner has declined over the
past 20 years, a new report by the US Congressional Research Service says.
This is especially true, it says, when compared with US trade with China.
The report, an overview of policy issues in US-Taiwan relations, says that ¡§many
observers¡¨ saw Taipei¡¦s restriction on US beef as a major obstacle.
More than any other issue, beef is responsible for the freezing of talks under
the Trade and Investment Framework Agreement (TIFA), the forum used by Taiwan
and the US to discuss economic issues.
TIFA talks have not been held since 2007.
Total US trade with Taiwan last year was US$67.2 billion, making Taiwan the
10th-largest US trading partner ¡X down from sixth position in 1989.
¡§US trade with Taiwan has been relatively stagnant over the past 10 years,¡¨ the
report says.
On the positive side, Taiwan has ¡§greatly improved¡¨ its protection of
intellectual property rights, although a number of problems remain, including
¡§infringement of copyrighted material on the Internet,¡¨ it adds.
¡§The US has raised concerns over Taiwan¡¦s barriers on certain agricultural
products such as rice, pharmaceuticals and medical devices. Taiwan¡¦s use of
sanitary and phyto-sanitary measures to block US beef sales to Taiwan are of
particular concern to US officials,¡¨ the report says.
US officials charge that a bilateral protocol that provided for expanded market
access for US beef and beef products in Taiwan has been ¡§significantly
undermined¡¨ by action taken by the Legislative Yuan, the report says.
Written by Shirley Kan, a specialist in Asian security affairs, and Wayne
Morrison, a specialist in Asian trade and finance, the report concludes that
both Washington and Taipei have put more efforts into relations with Beijing
than they have with each other.
It predicts that further into President Ma Ying-jeou¡¦s (°¨^¤E) second term Beijing
could increase pressure on Taiwan ¡§in preparing for, if not pressing for,
political and military negotiations.¡¨
The report says that despite the pronouncements of ¡§one China¡¨ by leaders in
Taipei and Beijing and closer cross-strait ties, Taiwan¡¦s people retain a strong
Taiwan-centric identity.
¡§Taiwan¡¦s people pragmatically have pursued prosperity, security and their
democratic way of life and self-governance,¡¨ the report says.
It adds that Ma has said he places priority on the relationship with the US, but
some observers say Taiwan needs to restore trust lost in the relationship and
¡§reciprocate US efforts to strengthen it.¡¨
Although Ma is chairman of the Chinese Nationalist Party (KMT), the report says,
it has been a challenge for him to lead his administration and party ¡§to resolve
the dispute over US beef.¡¨
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