Taiwan proposes free trade area with ASEAN
Taiwan proposes free trade area with ASEAN
M.Jegathesan, Agence France-Presse, Kuala Lumpur
Taiwan's Economic Minister Lin Yi-fu on Tuesday proposed the establishment of a free trade area (FTA) with the 10-member Association of Southeast Asian Nations (ASEAN).
Lin told AFP he had raised the issue in a rare two hour closed door meeting with his Malaysian counterpart Rafidah Aziz. Malaysia adopts a one-China policy and does not have diplomatic relations with Taiwan.
Asked for Rafidah's reaction to his proposal, Lin said: "The trade minister suggested we take up the issue with the ASEAN secretariat."
He denied the proposal was aimed at countering China's planned FTA with the region.
"No, No. That is not the case. We just want to integrate our economies," he said.
Lin is leading a 27-member delegation to Malaysia on a two-day visit as part of a tour of Southeast Asia.
His trip follows an historic agreement signed by Chinese Prime Minister Zhu Rongji and Southeast Asian leaders in Phnom Penh last week paving the way for the creation of the world's biggest FTA embracing 1.7 billion people and two-way trade worth 1.2 trillion dollars.
The FTA is expected to be completed in 2010 between China and the six original ASEAN members of Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand.
The least-developed ASEAN nations are given a few more years to prepare, with the deadline for Cambodia, Laos, Myanmar and Vietnam pushed back until 2015.
Lin on Monday toured Malaysia's northern Penang state, dubbed Southeast Asia's Silicon Valley, where the bulk of Taiwanese investment is located.
Taiwan is Malaysia's third biggest source of foreign capital, with accumulated investment running up to US$9.2 billion.
Lin was due to leave Malaysia later Tuesday for Thailand, where it is also the third biggest foreign investor, with $10.5 billion in various projects.
He is due to go on to Vietnam and Indonesia.
Taiwan's President Chen Shui-bian earlier this year recommended that Taiwan, the U.S. and Japan forge a free trade alliance to diversify the island's overseas projects, which were focused on rival China.
The president said free trade pacts between the three major economies could help check Taiwan's capital flow to China, which is fast emerging as a magnet for those looking for investment opportunities around the world.
Taiwan has been ruled separately from mainland China since the end of the Chinese civil war in 1949.
The communist government in Beijing considers the island an inalienable part of its territory, and has repeatedly threatened to use military force to re-take the island if it moves toward full independence.