TAITRA Chairman C.K. Wang Urges Taiwan to Enter Economic Blocs

Continuing chaos caused by student activists protesting against the cross-strait service trade agreement unnerves Taiwan’s President Ma Ying-jeou and his administration, which worry that if Taiwan fails to ink the pact with China, the island may have trouble entering regional economic blocs or signing free trade agreement (FTA) with other trade partners.

C. K. Wang, chairman of Taiwan External Trade Development Council (TAITRA), urges Taiwan to do its best to join global economic blocs as soon as possible, lest it should be marginalized in the global arena.

Wang says that Taiwan’s shipments to the 12 members of Trans-Pacific Strategic Economic Partnership Agreement (TPP) account for 32.2% of its total exports, with as much as 58.6% of its exports to the 16 members of Regional Comprehensive Economic Partnership (RCEP). So without being able to join the said two economic blocs, Taiwan's  external trade competitiveness may be compromised in the future.

The inking of the service pact is generally known to mutually benefit Taiwan and China, to facilitate a favorable environment for cross-strait investment, trade, economic liberalization and market development, while at the same time creating jobs and providing positive impetus to negotiations on future trade agreements with other trade partners.

Wang further points out that Taiwan has to address the imbalance of its industrial structure and keep expanding external trade and domestic demand. Besides, Taiwan has to be keen enough to grip possible business opportunities available from China’s 18th CPC National Congress and the global economic recovery this year, with the estimate by the International Monetary Fund (IMF) for global GDP growth in 2014 to be 3.7%, and that of  advanced countries and emerging economies being as high as 4.7% and 5.8%, respectively. All of the forecast percentages are higher than 2013’s corresponding figures. (JL)