Taiwan, Singapore to discuss signing free trade agreement (Roundup)

Aug 5, 2010, 1:54 GMT

Taipei - Taiwan and Singapore said Thursday that they will discuss signing a free trade pact (FTA) despite lack of diplomatic ties.

In a joint statement, the two countries said they will, under the framework of the World Trade Organization (WTO), explore the feasibility of signing the economic cooperation agreement.

'The talks will be held later this year,' the countries said. They added that Taiwan will hold the talks with Singapore using its title used in the WTO - Chinese-Taipei.

'Chinese-Taipei and Singapore have close ties. Chinese-Taipei is grateful to Singapore for its contribution to improving regional stability and for arranging the Koo-Wang talks in 1993,' the statement said.

The reference was to historic Taipei-Beijing talks between Taiwan and Chinese negotiators.

If Singapore signs the trade pact with Taiwan, it would be a breakthrough for Taipei because it has no such agreements with any countries that do not recognize it.

The United Daily News quoted an unnamed official as saying that Taiwan and Singapore hope to ink the pact in September. Similar to free trade agreements with India and Japan, it's possible the Singapore pact would not formally be called an FTA.

'Taiwan and Singapore are both WTO members. As WTO members, they have the right to sign trade pact which comply with WTO's spirit,' the official was quoted as saying.

Taiwan is also making contacts with Philippines, Malaysia and other countries about trade deals, the official said.

Later Thursday, Taiwan trade officials are expected to hold talks with Japanese officials in Tokyo on signing an investment guarantee agreement.

Taiwan signed an Economic Cooperation Agreement (ECFA) with China in June, part of resident Ma Ying-jeou's policy of seeking reconciliation with Beijing. Taiwan hopes that agreement will prompt other countries which which do not recognize Taiwan to sign free trade agreements.

Taiwan, which is recognized by only 23 mostly-small nations, has signed FTAs with five of those countries. Taiwan's would like to have similar deals with its major trading partners, which include the United States, Russia and Brazil.

But until now, these countries have been reluctant to sign FTAs, apparently for fear of offending China.

China sees Taiwan as its breakaway province and bars Beijing's diplomats from making formal contacts with Taipei.

Regarding Taiwan's signing FTAs with Beijing's allies, China said it is willing to 'discuss and properly handle' the issue with Taipei under the 'one-China' policy - that is Taiwan must accept that it is part of China.