Taiwan stuck at a crossroads with US and China over trade deals, facing conflicting prospects
- Speculation has mounted as to whether China will allow its Economic Cooperation Framework Agreement with Taiwan to end amid rising political tensions
- US Health and Human Services Secretary Alex Azar also floated the prospect of renewing long-running US-Taiwan trade talks, but doubts remain on both fronts
Washington rekindled an old Taiwanese dream this month when a cabinet member floated the idea of a trade deal with the United States, a goal discussed for the past quarter of a century between the export-reliant Asian economy and its second largest market.
At the same time, there are question marks hanging over Taiwan’s 10-year old trade deal with mainland China, which Beijing officials have publicly discussed cancelling as political ties spiral downward.
A continuation of trade ties with China – even at a time of such political strain – appears to be an easier “win” than the elusive US trade deal Taipei has chased for decades, but on which it has perennially failed to offer concessions enough to sway Washington.
The US is much more important to Taiwan than the other way around
In 1994, the two sides agreed to talk regularly toward a deal and had met 10 times as of 2016, but there have been no such meetings so far during the administration of US President Donald Trump.
But then, during his somewhat controversial visit to Taiwan, US Health and Human Services Secretary Alex Azar confirmed that he had discussed trade issues with Taiwanese officials in Taipei “including questions surrounding bilateral trade arrangements” – a sign that talks might be back on the agenda.