News / Economy

Taiwan, Singapore Sign Free Trade Deal as China Relents

Taiwan's Economic Affairs Minister Chang Chia-Juch and Foreign Minister David Lin attend a news conference after Taiwan and Singapore signed their agreement, Nov. 7, 2013.
Taiwan's Economic Affairs Minister Chang Chia-Juch and Foreign Minister David Lin attend a news conference after Taiwan and Singapore signed their agreement, Nov. 7, 2013.
Ralph Jennings
After more than three years of talks, Taiwan and Singapore have finally signed a trade liberalization deal. The pact was signed in Singapore on Thursday and represents Taiwan’s most significant to date. The deal signals that Taiwan’s powerful foe, China, has relaxed its' stance forbidding major countries from engaging directly with the island
 
Taiwan and its fifth largest trade partner, Singapore, hope the deal will provide a lift to two-way trade that reached $28.2 billion last year. China sees Taiwan as part of its territory rather than a state free to negotiate with other countries, and in the past Beijing had blocked deals such as this, except for pacts with Taiwan’s tiny diplomatic allies.
 
Scholars say Beijing has recently eased its position on Taiwan trade following its own economic cooperation pact with Taiwan, made in 2010 as part of a broader effort to get along after six decades of hostilities.
 
George Tsai, a political scientist at Chinese Cultural University, in Taipei, says China can tolerate deals that avoid implying that Taipei and Beijing are separate countries. He says that means no signatures by diplomats or agreements that mention the words “free trade deal.” The pact just signed with Taiwan’s fifth largest trading partner is called an economic partnership, or referred to by its acronym: ASTEP.
 
“It goes back to two issues, as what name and what form, by whom, to sign the agreement, ASTEP is two rep offices signing. Under this form, I think China can look the other way,” said Tsai.
 
Beijing, backed by its economic muscle, previously forbid its 170-plus diplomatic allies, including the world’s biggest countries, from engaging with Taiwan. China has seen Taiwan as part of its territory since the Chinese civil war of the 1940s. In the past, it has threatened to use military force to reunite the two, but over the past five years it has sought to impress Taiwan’s public with trade and investment tie-ups, part of a push toward eventual reunification.
 
Taiwan President Ma Ying-jeou is expected to win badly needed public support for the Singapore deal; his approval ratings currently hover around 20 percent. Taiwan’s trade with Singapore comes to five percent of its total with other territories, and the island government estimates the agreement will add $701 million to its $474 billion economy over the next 15 years.
 
Kweibo Huang, associate diplomacy professor at National Chengchi University, in Taipei, thinks the pact will especially help Taiwan catch up with regional economic integration. China, Japan, South Korea and Southeast Asia lead Taiwan in trade deals with one another as well as with Western nations. Taiwan signed its first major Asia-Pacific trade agreement in July with New Zealand.
 
Huang feels Taiwan’s domestic economy falls short of ideal, while its participation in increasingly fast-paced regional economic integration is limited. Huang adds that Taiwan must speed up the signing of free trade deals to ensure its economic security.
 
Taiwanese official media say exports to Singapore will grow by $782 million under the trade agreement, and imports by $719 million. The island’s manufacturing sector, the bedrock of its economy, would grow by $1.18 billion. The pact will also eliminate tariffs on 99 percent of Taiwan’s imports from Singapore, a boon to the free-port city state that already keeps tariffs low.

You May Like

China May Be Biggest Winner From Ukraine Crisis

Missile sales, oil and gas shipments are among many areas that may drive Beijing and Moscow closer together in coming years More

Obama Faces Chaotic World, Limits of Power

Current foreign policy issues bring into focus challenges for US policymakers who are mindful of Americans' waning appetite for overseas military engagements More

SADC Meeting Lesotho Officials to Resolve Stalemate

Official says regional bloc has been engaged with leaders in Lesotho to resolve political disagreement that led to coup attempt More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
West Africa Ebola Vaccine Trials Possible by Early 2015i
X
Carol Pearson
August 30, 2014 7:14 PM
A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video West Africa Ebola Vaccine Trials Possible by Early 2015

A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video Survivors Commemorate 70th Anniversary of Nazi Liquidation of Jewish Ghetto

When the German Nazi army occupied the Polish city of Lodz in 1939, it marked the beginning of a long nightmare for the Jewish community that once made up one third of the population. Roughly 200,000 people were forced into the Lodz Ghetto. Less than 7,000 survived. As VOA’s Kane Farabaugh reports, some survivors gathered at the Union League Club in Chicago on the 70th anniversary of the liquidation of the Lodz Ghetto to remember those who suffered at the hands of the Nazi regime.
Video

Video Cost to Raise Child in US Continues to Rise

The cost of raising a child in the United States continues to rise. In its latest annual report, the U.S. Department of Agriculture says middle income families with a child born in 2013 can expect to spend more than $240,000 before that child turns 18. And sending that child to college more than doubles that amount. VOA’s Deborah Block visited with a couple with one child in Alexandria, Virginia, to learn if the report reflects their lifestyle.
Video

Video Chaotic Afghan Vote Recount Threatens Nation’s Future

Afghanistan’s troubled presidential election continues to be rocked by turmoil as an audit of the ballots drags on. The U.N. says the recount will not be completed before September 10. Observers say repeated disputes and delays are threatening the orderly transfer of power and could have dangerous consequences. VOA correspondent Meredith Buel reports.
Video

Video Ukraine Battles Pro-Russia Rebel Assault

After NATO concluded an emergency meeting to discuss the crisis in eastern Ukraine, the country is struggling to contain heavy fighting near the strategic port of Mariupol, on the Azov Sea. Separatist rebels are trying to capture the city, allegedly with Russian military help, and Ukraine's defense forces are digging in. VOA's Daniel Schearf spoke with analysts about what lies ahead for Ukraine.
Video

Video Growing Business Offers Paint with a Twist of Wine

Two New Orleans area women started a small business seven years ago with one thing in mind: to help their neighbors relieve the stress of coping with a hurricane's aftermath. Today their business, which pairs painting and a little bit of wine, has become one of the fastest growing franchises across the U.S. VOA’s June Soh met the entrepreneurs at their newest franchise location in the Washington suburbs.
Video

Video Ebola Vaccine Trials To Begin Next Week

The National Institutes of Health says it is launching early stage trials of a vaccine to prevent the Ebola virus, which has infected or killed thousands of people across West Africa. The World Health Organization says Ebola could infect more than 20,000 people across the region by the time the outbreak is over. The epidemic has health experts and governments scrambling to prevent more people from becoming infected. Zlatica Hoke has more.
Video

Video Asian Bacteria Threatens Florida Orange Trees

Florida's citrus fruit industry is facing a serious threat from a bacteria carried by the Asian insect called psyllid. The widespread infestation again highlights the danger of transferring non-native species to American soil. VOA’s George Putic reports.
Video

Video Aging Will Reduce Economic Growth Worldwide in Coming Decades

The world is getting older, fast. And as more people retire each year, fewer working-age people will be there to replace them. Bond rating agency Moody’s says that will lead to a decline in household savings; reducing global investments - which in turn, will lead to slower economic growth around the world. But experts say it’s not too late to mitigate the economic impact of the world’s aging populations. Mil Arcega has more.
Video

Video Is West Doing Enough to Tackle Islamic State?

U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Coalition to Fight Islamic State Could Reward Assad

The United States along with European and Mideast allies are considering a broader assault against Islamic State fighters who have spread from Syria into Iraq and risk further destabilizing an already troubled region. But as VOA State Department Correspondent Scott Stearns reports, confronting those militants could end up helping the embattled Syrian President Bashar al-Assad.
Video

Video Made in America Socks Get Toehold in Online Fashion Market

Three young entrepreneurs are hoping to revolutionize the high-end sock industry by introducing all-American creations of their own. And they’re doing most of it the old-fashioned way. VOA’s Julie Taboh recently caught up with them to learn what goes into making their one-of-a-kind socks.
Video

Video Americans, Ex-Pats Send Relief Supplies to West Africa

Health organizations from around the world are sending supplies and specialists to the West African countries that are dealing with the worst Ebola outbreak in history. On a smaller scale, ordinary Americans and African expatriates living in the United States are doing the same. VOA's Carol Pearson reports.

AppleAndroid

World Currencies

EUR
USD
0.7537
JPY
USD
103.79
GBP
USD
0.6032
CAD
USD
1.0957
INR
USD
60.522

Rates may not be current.