Signing an economic pact with Singapore will help Taiwan more effectively explore the Southeast Asian and South Asian markets, which Singapore is on good terms with, Minister of Foreign Affairs Timothy Yang (楊進添) said yesterday.
Yang made the remarks after Taiwan and Singapore announced earlier in the day that the two countries had agreed to explore the feasibility of inking a trade pact based on the groundwork laid by the Economic Cooperation Framework Agreement (ECFA) that was signed with China in late June.
Two-way Taiwan-Singapore trade totaled US$13.4 billion last year, with the figure for the first half of this year reaching US$9.3 billion.
Yang said Taiwan is seeking to forge such an accord with Singapore because of the city state’s role in ASEAN and not simply because it is an important trade partner.
“A Taiwan-Singapore economic cooperation agreement should also help Taiwan step up its relations with the 10 ASEAN member states, as well as India,” Yang said.
NOT AN FTA
Asked why the planned deal with Singapore would be an economic cooperation agreement and not a free-trade agreement (FTA), Yang said not all bilateral agreements signed under the framework of the WTO were FTAs.
“Singapore signed 20 similar agreements with other countries, 15 of which were FTAs, while five were not. All 10 trade pacts Japan has signed with other countries and many others New Zealand and Australia have signed with other countries are also not FTAs,” he said.
When asked if China would be an impediment to the process of signing an economic agreement with Singapore, Yang simply said Taiwan has the right to ink an agreement.
According to Deputy Minister of Economic Affairs Lin Sheng-chung (林聖忠), the Singapore pact would be “key” for Taiwan to develop further economic relationships with ASEAN, which behind China is the most important center of economic development in the region.
Being able to start to negotiate the planned trade agreement with Singapore has added significance, he said.
“Singapore plays a dominant role in the development of ASEAN. Previous experience shows that many countries, for example the US and Japan, signed bilateral agreements with Singapore before concluding similar deals with the ASEAN nations,” the deputy minister said.
Lin said the proposed economic pact with Singapore would be a bilateral deal under the WTO framework.
“In accordance with WTO rules, the agreement doesn’t have to be between countries, it can be between economies,” Lin said.
Council for Economic Planning and Development Minister Christina Liu (劉憶如) said Singapore is the most active Asian country in seeking FTAs with its major trading partners.
“The city-state has long intended to sign such a pact with Taiwan, but such efforts were dampened by the special situation in the Taiwan Strait in the past,” Liu said.
CROSS-STRAIT ISSUES
In early 2000, both Taiwan and Singapore expressed their wish to forge such an agreement, but the proposal was then delayed “for some reason” and no progress had been made since, Liu said.
“After China signed the Economic Cooperation Framework Agreement with Taiwan, Singapore is now willing to follow suit,” the government’s top economic planner said.
Taiwan has also consulted on various occasions with the US, the EU, Japan, Malaysia, the Philippines and other countries over their interest in negotiating similar agreements, Lin said without elaborating.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
RSS