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.