An Economic Cooperation Agreement between Taiwan and the European Union would be mutually beneficial, Deputy Minister of Economic Affairs Lin Sheng-chung said in London Oct. 12.
“Taiwan plays an integral role in the East Asian economy and could serve as an ideal basis for the European Union to expand trade relations around the region,” Lin said.
The EU can use Taiwan as a springboard into mainland China, he added, noting that Taiwan has already formed many economic ties with mainland China, and that the recent signing of the Cross-Straits Economic Cooperation Framework Agreement (ECFA) gives manufacturers based in Taiwan a competitive edge over those located elsewhere.
In addition, Taiwan has forged many connections with the member states within the Association of Southeast Asian Nations, thanks to its numerous investment projects within ASEAN, he noted.
Taiwan also is a world leader in the information communications technology industry, according to Lin.
“The EU is Taiwan’s fourth largest trading partner, and Taiwan is also the EU’s fourth largest trading partner,” he said. “This being the case, an economic agreement between the two sides will undoubtedly bring tremendous benefits.”
Lin made the remarks at a conference studying whether the two entities should sign such a pact, which would have an effect almost identical to a standard free trade agreement.
The European Center for International Political Economy, which hosted the conference, agreed with Lin’s assessment, noting that a Taiwan-EU economic pact would give European companies easier access into mainland China because of the ECFA that Beijing and Taipei agreed to last June.
Europe’s telecommunications, automotive, financial and medical sectors could all reap enormous gains from the pact with Taiwan, the center said.
Many EU nations have already indicated they are in favor of an economic agreement with Taiwan, said Lin, but he cautioned that much more work will need to be done before the proposed trade agreement can become a reality.
Lin noted that in an earlier proposal in the Czech Legislature, 129 out of 140 lawmakers said they are in favor of signing a trade agreement with Taiwan. (HZW)
Write to Aaron Hsu at pj1210meister@mail.gio.gov.tw