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President Ma Attends Banquet for ROC Representatives Attending East Asian Regional Affairs Meeting
2010-01-13

President Ma Ying-jeou on the evening of January 13 attended a banquet held for the ROC representatives to foreign nations attending the East Asian Regional Affairs Meeting. In an address to the gathering, the president introduced the government's diplomatic policies and visions for cross-strait relations. He also urged the representatives to do their utmost to assist the government in expanding its diplomatic reach. Meanwhile, President Ma also expressed his deepest sympathies for the people of Haiti, one of the ROC's diplomatic allies, following the devastating earthquake that struck earlier in the day. The president pledged that the ROC will do all it can to assist with rescue work in that nation.

President Ma said that East Asia has exhibited some of the strongest economic growth of anywhere in the world in recent years. The region is responsible for over half of the world's output value and nearly half of global trading volume. Meanwhile, 40% of the world's population is concentrated in the region. The president pointed out that ASEAN, mainland China, Japan, Korea, and Taiwan generate nearly one quarter of the world's output. In the past several years, nations in the region have advocated regional integration. For instance, he said, Australian Prime Minister Kevin Rudd has proposed the formation of the Asia Pacific Community, while Japanese Prime Minister Yukio Hatoyama has proposed the creation of an East Asia Community. Meanwhile, members of APEC have called for the formation of the Free Trade Area of the Asia Pacific (FTAAP) and the Trans-Pacific Partnership, he said, with an eye to taking advantage of the rapid economic development in the region as well as its enormous potential.

President Ma said that the free trade agreements between ASEAN and mainland China and ASEAN and Korea formally took effect starting this year, and the main impact of these pacts is that over 90% of goods traded between these countries will enjoy the zero tariffs benefits. This presents an enormous challenge to Taiwan, as it competes with Korea for market share in ASEAN nations. Consequently, Taiwan will undoubtedly be impacted, he said. After the inking of a free trade zone agreement between ASEAN and mainland China, products from Taiwan that have been competitive in ASEAN nations, including petrochemicals, automobile parts, machinery, and textile products, may be particularly affected, President Ma said. This is the main reason that the government is working aggressively to iron out the Economic Cooperation Framework Agreement (ECFA) between the two sides of the Taiwan Strait, he said.

The president noted that Taiwan possesses a geographical advantage. On the other side of the Pacific Ocean is the world's largest economy, the United States. North of Taiwan is Japan, the world's second largest economy, while to Taiwan's west is mainland China, the world's third largest economy, and which is poised to soon supplant Japan as the second largest economy if it has not done so already. Meanwhile, the 10 ASEAN nations comprise the world's fifth largest economic entity. In the past, the president said, Taiwan has not taken full advantage of the edge it has in this regard.

President Ma said he believes Taiwan has the potential to serve as a regional springboard. In wake of the improvement of relations with mainland China, direct cross-strait flights have commenced, with 270 flights now in operation each week. This has significantly increased interest in Taiwan among foreign companies, he said. The president also explained that starting in October of this year four daily charter flights will fly between Taipei's Songshan Airport and Tokyo's Haneda Airport. This is expected to provide an enormous boost to tourism and economic & trade relations between Taiwan and Japan, he said. Songshan Airport and Shanghai's Hongqiao Airport should also have a similar opportunity, the president pointed out. If flights could also be commenced with Kimpo Airport in Seoul, Korea, this would create a golden aviation triangle in East Asia, he said. President Ma remarked that this would help realize the commitment he made during his presidential campaign to link the four cities, which are located within three hours of each other by plane. The objective, he said, is to enable Taiwan to serve as a global innovation center, an Asia-Pacific economic and trade hub, and a business headquarters for Taiwan-invested companies with offshore manufacturing operations. President Ma urged all the representatives in attendance to engage in their work with regional strategies in mind and consider how to enable Taiwan to best use its geographical advantage to its maximum potential.

In discussing cross-strait economic and trade relations, President Ma said that since he took office, Taiwan and mainland China have signed 12 agreements, which have helped to institutionalize the already extremely close trade and investment ties between the two. Back in 2007, he said, the volume of cross-strait trade had already amounted to US$130 billion, with a trade surplus reaching US$70 billion. However, not a single trade agreement is in place between the two sides, he said, and even though both sides are members of the World Trade Organization, the requirements of the WTO have not actually played any real role in cross-strait trade relations. Therefore, the government hopes to negotiate a cross-strait economic agreement with mainland China, with the objective of establishing order for trade between the two sides and to prevent Taiwan from being marginalized in the process of East Asian economic integration. This initiative would also promote further internationalization and liberalization of Taiwan, he said.

Some doubts persist domestically with regards to the signing of an Economic Cooperation Framework Agreement with mainland China, but President Ma stated that Taiwan could not possibly sign agreements with only mainland China. In addition, the mainland in the past has said publicly that it would not raise any opposition if other nations with which it has signed agreements were to subsequently discuss such issues with Taiwan. ASEAN meets this definition, he said. Likewise, he said that he is confident that if Taiwan is able to sign an Economic Cooperation Framework Agreement with mainland China, then Japan and Korea would also be interested in a similar accord. President Ma stressed that the government's movement in this regard carries enormous strategic significance, and this would enable economic integration in East Asia, and particularly in Northeast Asia, to proceed more rapidly. This would without a doubt be positive for Taiwan, he said. On the other hand, if Taiwan does not pursue this route, it will face being marginalized, he added. The president pointed out that in 2000, only three free trade agreements had been signed in Asia. As of last year, however, that number had increased to 58, and the only countries of scale that have not been included are North Korea and Taiwan. Taiwan must avoid being isolated and marginalized. This is the only way the nation can truly survive and prosper, he said.

President Ma also expressed his deepest sympathies with regards to the Richter 7 earthquake that shook Haiti earlier today. Fortunately, he said, the ROC's ambassador and minister were rescued from rubble six hours after the quake. No serious injuries were reported among the other ROC embassy personnel stationed there. The president said that immediately upon receiving the news earlier in the day, he asked the Ministry of Foreign Affairs to closely monitor the situation. He also asked that Taiwan's international rescue assistance team be dispatched to Haiti. The first group of rescue personnel is set to depart at 11 p.m. this evening, he said. President Ma stressed that the government will provide the maximum rescue and medical assistance possible in light of the serious damage and loss of life caused by the tremor. He expressed his hopes that everyone will pray for Taiwan personnel stationed there, and for overseas compatriots living in Haiti. The president also said that there must be no delays in the rescue work and that the efforts made by the ROC demonstrate the importance it places on humanitarian assistance and human rights in its external relations.

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