Taiwan

Ago21

VACINAS COVID CHINA -TAIWAN

Over the past five years, Chinese firms have obtained exclusive distribution rights to Taiwan for 29 percent of new pharmaceuticals, posing an increasingly serious problem that cannot be ignored, it said. The bureau recommended that the Ministry of Foreign Affairs and national security agencies intervene in China’s attempts to monopolize Taiwan’s pharmaceutical market. Using appropriate channels, officials should persuade multinationals to avoid signing right-of-agency contracts for Taiwan with Chinese distributors, thereby preventing human rights, moral and political controversies, it said. All import licensing procedures should follow WTO protocols, as Taiwan, Germany and China are all members of the global trade body, the report added, recommending that the Ministry of Economic Affairs seek a decision from the WTO or another international economic forum to ensure fair and timely access to vaccines worldwide. https://taipeitimes.com/News/front/archives/2021/08/01/2003761814

JUL21

Last month, Washington opened a new front in the campaign to elevate Taiwan’s status as the two countries revived a Trade and Investment Framework Agreement (TIFA), which had been signed in 1994, but was essentially moribund since then. One of the main obstacles to negotiating a trade agreement under TIFA had been Taiwan’s unwillingness to purchase US pork and beef treated with additives. President Tsai Ing-wen (蔡英文) last year broke the logjam over strong domestic opposition and announced that Taiwan would lift the ban.The growing danger was demonstrated when Chinese leader Xi Jinping (習近平) commemorated the 100th anniversary of the Chinese Communist Party (CCP) by promising that foreign nations that bully China will “get their heads bashed” (after calling for a “lovable” foreign policy). CCP organ the Global Times said that Xi “expressed steel-like determination and confidence in reunification” — perhaps to match the Biden administration’s “rock-solid” commitment to Taiwan. TIFA and TIPA are the best answers to Beijing’s menacing rhetoric and actions. Biden should announce his support for both. https://www.taipeitimes.com/News/editorials/archives/2021/07/20/2003761139

HK

On July 14, 2020, then-President Donald Trump issued an executive order finding the Hong Kong Special Administrative Region (Hong Kong) “no longer sufficiently autonomous to justify differential treatment in relation to the People’s Republic of China” (China) with regard to specific laws listed in the Order, and suspending differential application of those laws to Hong Kong. One of the relevant laws, 19 U.S.C. § 1304, sets out how products from other territories must be marked to indicate their country of origin. In response to the Executive Order, U.S. Customs and Border Protection (CBP) issued a notice requiring all goods previously marked with “Hong Kong” to indicate “China” as their country of origin. Since this action, Hong Kong has initiated a World Trade Organization (WTO) dispute against the United States, arguing the new marking requirements violate several WTO agreements. On March 31, 2021, President Joe Biden’s Administration indicated that it intends to maintain the suspension of differential treatment of Hong Kong. 

Implications of Revoking Hong Kong’s Trade Status

Pursuant to the former President’s July 2020 Executive Order, CBP issued a notice requiring goods from Hong Kong to list “China” as the country of origin. This section discusses the effects of CBP’s notice on the treatment of goods from Hong Kong under U.S. law, and then discusses Hong Kong’s decision to initiate a WTO dispute regarding the notice.

Hong Kong and the WTO

In October 2020, Hong Kong initiated a WTO dispute against the United States, requesting consultations and arguing the U.S. actions taken with regard to how products originating from Hong Kong must be marked may violate WTO rules. This part provides an overview of Hong Kong’s status at the WTO and then discusses its WTO dispute against the United States.

Hong Kong retains its own membership in the WTO—separate from China—as the organization permits customs territories in addition to countries to join. As stated, the Joint Declaration and Basic Law permit Hong Kong to retain its membership in the WTO’s predecessor (i.e., GATT) and carry over this membership to the WTO in 1995 (which China did not join until 2001). Other nonsovereign customs territories are also WTO members, including Macao and Taiwan, which has led to what some refer to as a “One China, Four WTO Memberships” phenomenon

Revoking Hong Kong's Preferential Trade Status: Legal ...

The WTO formally approved Taiwan for Membership into the WTO in

November 2001 in Qatar. Taiwan had been negotiating for entry into the WTO

for more than 12 years. However, Taiwan‘s main obstacle was that it had to

accede to Chinese demands that China be allowed entry first, even though

negotiations and the terms of Taiwan‘s accession to the WTO were effectively

completed two years before.

Despite Taiwan‘s status as a separate territory from China, Beijing claims

Taiwan is part of China that eventually will be reunited with the mainland. To

accommodate Beijing‘s view, within the WTO, Taiwan is known as ―Chinese

Taipei‖ and entered the WTO as the ―Separate Customs Territory of Taiwan,

Penghu, Kinmen and Matsu.‖ Despite the tension between China and Taiwan,

both areas have been forced to adopt WTO rules stipulating that all Members

must treat each other‘s goods and services equally. This part of the paper will

therefore discuss the impact that WTO Membership has delivered Taiwan.

In conclusion, because the tensions between China and Taiwan is a zerosum

game by nature where there will ultimately only be one winner and one

loser, the WTO will find it difficult to ease political tensions between both two

sides. As mentioned, even the mere ascension of the two to the WTO was

fraught with animosity in deciding Taipei‘s identification. Nevertheless, while

Beijing and Taipei are both in the WTO, there will always be opportunities for

―mini détentes‖ between the two when they concur on issues related to trade. It

is therefore this economic dimension, which concurs with the second

hypothesis of this paper that joint membership of the WTO will reduce tensions

between the two sides.

As the WTO is functionalist in nature, it now has the opportunity to

establish within it a formula for the relationship between China and Taiwan,

which is agreeable to all Members, including the two major stakeholders. To

this end, Taipei and Beijing should be encouraged to take practical approaches

towards each other in the WTO. China should be supported in fulfilling its

commitments under the WTO Agreement, and Taipei should be warned not to

enrage Beijing by trying to exploit the WTO to its own political ends.

As demonstrated throughout this paper, the impact of WTO accession on

China and Taiwan has been much less pronounced on Taiwan than on China.

While Taiwan is required to make some adjustments to its industry structure,

especially in the areas of agriculture and services, the adjustments required by

the Chinese economy are far more substantial.

Because Taiwan already had Western leaning economic, political and legal

systems before entering the WTO, it was much more integrated into the world

economy than China. The journey to full compliance with WTO commitments

will therefore be less bumpy for Taiwan than their cousins across the Taiwan

Strait.

Just how the political and economic transformations bought about through

WTO accession will be played out in Taiwan and China is going to be of major

interest to the rest of the world. A nervous Asia-Pacific will keep a keen watch

on whether reduced tensions between the two as a consequence of dual

membership will result. Also of interest is whether the social transformations in

China and the inevitable economic loss experienced by the agricultural and

state-owned sectors will be substantial enough to threaten the vice-like grip

that the Communist Party has had in China for the last 46 years.

No matter what, therefore, China and Taiwan‘s accession to the WTO is an

issue which will have the world entranced for at least the next few decades as

one of the greatest social and economic transformations in human history takes

place.

Andrew Christie Papadimos 2005

China and Taiwan's WTO Experiences

jun21

Last week, Washington opened a new front in the campaign to elevate Taiwan’s status as the two countries revived a Trade and Investment Framework Agreement (TIFA), signed in 1994 but essentially moribund since then. One of the main obstacles to negotiating a trade agreement under TIFA had been Taiwan’s unwillingness to purchase American pork and beef treated with additives. Taiwan’s President Tsai Ing-wen broke the logjam in 2020 over strong domestic opposition and announced that Taiwan would lift the ban. With that hurdle overcome, the way was clear for serious talks potentially leading to a Free Trade Agreement, and the Trump administration seemed more likely to make it happen than any of its predecessors had been. But, despite the auspicious circumstances, the timing did not work because U.S. Trade Representative Robert Lighthizer was immersed in the critical trade negotiations with China. More than his inability to commit the necessary time and energy was involved. Beijing strongly objected to the Trump administration’s growing ties with Taiwan and warned that Washington would have to choose which trade partner was more important to its interests. The political impasse over Taiwan’s economic status was reminiscent of the years-long delay that held up its accession to the World Trade Organization in the 1990s. Though Taiwan early on had qualified for WTO entry, Beijing insisted that China be admitted first and that Taiwan could enter only as the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei). The WTO acceded to Beijing’s demands and held up Taiwan’s admission until China got its economic house in order to barely meet the minimum standards in 2001. https://thehill.com/opinion/international/561591-america-now-has-a-one-china-one-taiwan-policy-tifa-and-tipa-will Joseph Bosco served as China country director for the secretary of Defense from 2005 to 2006 and as Asia-Pacific director of humanitarian assistance and disaster relief from 2009 to 2010. He is a nonresident fellow at the Institute for Corean-American Studies and a member of the advisory board of the Global Taiwan Institute

1999

Officials and foreign businesspeople in Taiwan have watched helplessly as Beijing and Washington fumble for a resolution to China's application to join the World Trade Organization.

The only thing holding up Taiwan's own application, they say, is China; Beijing will never allow Taiwan, which it views as a renegade province, to get ahead in line.

It isn't for a lack of qualifications, says Duncan Woolridge, chief economist at Merrill Lynch (Asia-Pacific) Ltd. Taiwan consistently ranks among the world's 20 largest economies. Last year, it was the U.S.'s seventh-largest trading partner -- behind Britain and ahead of France -- with $51 billion in trade. The island has been a rock of financial stability amid Asia's financial crisis. https://www.wsj.com/articles/SB924122053626688248

This page gathers key information on Chinese Taipei's participation in the WTO. Chinese Taipei has been a member of WTO since 1 January 2002.  https://www.wto.org/english/thewto_e/countries_e/chinese_taipei_e.htm

In contrast to other international organizations, the World Trade Organization does not require its members to be states. This constitutional feature has allowed Taiwan to join the WTO alongside China. As a result, the WTO is now the only major international organization in which Taiwan can participate as a full member. This article explores some implications of this unique situation for Taiwan, for the WTO, and for international law. The article contends that Taiwan’s membership in the WTO is not itself a bilateral treaty with China and does not itself change the legal relationship between Taiwan and China. What Taiwan’s membership does do, however, is to establish some rule of law between Taiwan and China and to give Taiwan standing in an international tribunal should it wish to assert that China has violated WTO rules. The parallel memberships of Taiwan and China also provide a neutral international forum for those two governments to meet and negotiate if needed. The article also points out some dangers to the WTO that stem from Taiwan’s exclusion from international standard-setting organizations. The article recommends that the WTO do more to assist Taiwan in carrying out its WTO obligations that involve the international community. In joining the WTO, Taiwan has enhanced its sovereignty in the modern sense of being able to participate in world governance. So far, Taiwan’s membership in the WTO has not facilitated its quest for a capacity to participate in the World Health Organization. TAIWAN’S WTO MEMBERSHIP AND ITS INTERNATIONAL IMPLICATIONS Steve Charnovitz (2016) George Washington University Law School, Washington, D.C.