Taiwan Today: Given that U.K. Trade & Investment has placed Taiwan among Britain’s top 14 best prospect export markets since 1998, how would you describe the current state of bilateral trade exchanges?
Chang: Commercial ties between Taiwan and the U.K. have been close in recent times. According to the Bureau of Foreign Trade under the Ministry of Economic Affairs, bilateral trade in 2008 amounted to US$5.547 billion. The U.K is ranked as Taiwan’s 19th largest trading partner. In addition, it is also the island’s third largest trading partner in Europe, following Germany and the Netherlands.
Based on information supplied by the MOEA’s Investment Commission, the British government approved a total of 162 Taiwan investment projects totalling nearly US$513.34 million in 2008. In addition, 70 percent of Taiwan’s investment in Europe, including electrical machinery, financial services and air and marine transportation sectors, is concentrated in Britain. Many of these firms, such as Evergreen Marine Corp. Ltd., Yang Ming Marine Transport Corp. Ltd., D-Link Corp. Ltd. and HTC Corp. Ltd., have chosen the U.K. as their European headquarters.
Last year, British financial, insurance, securities, pharmaceuticals, retail, furniture and chemical firms backed 516 projects in Taiwan for a total of US$5.196 billion. This makes the U.K. the sixth biggest source of foreign investment for Taiwan after Japan, the United States, Hong Kong, Singapore and Malaysia.
TT: How would you describe the current state of cultural and educational exchanges between Taiwan and the U.K.?
Chang: Despite the absence of formal diplomatic relations, bilateral exchanges in cultural and educational areas have remained substantial.
According to the Ministry of Education, some 15,000 students from Taiwan, accounting for 25 percent of the nation’s students studying abroad, are enrolled in the U.K. This makes Britain the second most popular overseas destination for our students next to the U.S.
Moreover, an agreement on educational and cultural matters was signed in 2001. Four years later, Taipei and London inked a memorandum of understanding on promoting Chinese teaching programs, higher education and university partnerships at all levels.
As for the technology sector, under the agreement on technology cooperation between Taiwan and U.K. signed in 2002, both sides have built reciprocal relationships through setting objectives for long-term cooperation on designated technology projects. These pertain to telecommunications, nanotechnology, chip systems, agriculture, pharmaceuticals and gene medicine.
A number of major U.K.-based research organizations are involved in this collaboration. These include the Art and Humanities Research Council, British Academy, British Council, Engineering and Physical Sciences Research Council, Royal Society, and Royal Society of Edinburgh.
TT: What are the contributing factors to the U.K. government’s decision to extend visa-free privileges to ROC citizens? How is this policy impacting bilateral tourism relations?
Chang: Taiwan’s inclusion in Britain’s visa-waiver program was based on the U.K. Border Agency’s worldwide review of visa regimes for 2007 to 2008 that determined Taiwan presented a low violation risk.
The U.K. government’s decision illustrates that it acknowledges Taiwan’s introduction of biometric passports, which are designed to minimize incidences of fraud. Equally crucial, the island’s economic power in the international community and the significance of benefits stemming from bilateral trade exchanges should not be overlooked.
I believe Britain’s good-will gesture will result in a substantial enhancement of bilateral ties and be conducive to the island’s bid for admission into the visa-free programs of other countries. In the first three months following the measure’s launch, the number of ROC citizens traveling to the U.K. shot up by nearly 40 percent.
TT: How is President Ma’s “flexible diplomacy” policy impacting trilateral ties between Taipei, London and Beijing?
Chang: The cornerstone of President Ma’s “flexible diplomacy” policy is to build trust across the strait, so as to set aside controversies and create a win-win situation. Ma believes that in ending the struggle between Taipei and Beijing in the international area, Beijing will respond by taking a pragmatic view concerning Taiwan’s efforts to participate in international organizations. Improved cross-strait relations, to a large extent, are conducive to not only forging diplomatic ties with our allies but also expanding Taiwan’s participation in the international community.
The British government, without question, welcomes President Ma’s pragmatic diplomatic approach. David W. Miliband, U.K. Secretary of State for Foreign and Commonwealth Affairs, believes the Ma Ying-jeou administration represents a real opportunity to improve cross-strait relations. Miliband recently said he hoped the two sides would engage in direct dialogue to resolve differences and find a peaceful solution acceptable to the populations on both sides of the straits.
The British government also welcomes Taiwan’s new approach of securing representation in selected U.N. specialized agencies such as the U.N. Framework Convention on Climate Change and International Civil Aviation Organization. It believes that ongoing cross-strait dialogue will lay a foundation for fostering future military confidence building measures between Taipei and Beijing. (JSM)
Write to Chiayi Ho at chiayi@mail.gio.gov.tw