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Taiwan'S Role In The Economic Architecture Of East Asia And The Pacific

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  • Peter Drysdale

    (AJRC)

  • Xinpeng Xu

Abstract

The accession of both China and Taiwan to the World Trade Organization (WTO) had important implications for relations across the Taiwan Strait and Taiwans position in the regional economy although it did not fundamentally change trade policies by either side towards the other. Accession strengthened Chinas position in the world economy and the momentum of economic reform. Chinas weight and importance in the regional and world economies has increased greatly. With the shift to regionalism and bilateral free trade agreements in East Asia and the Pacific, and Chinas new freedom to join this game, Taiwan has become even more isolated diplomatically. Moreover, despite WTO accession, Taiwan maintains discrimination in its trade policy against key imports from the mainland. This damages Taiwanese trade and economic performance by truncating the capacity of the economy to generate higher value added in Taiwan on the base of Chinas low-cost processing capacity. Because of these restrictions, Taiwan under-utilises trade potential with China and with the world at large compared with other economies in the region such as South Korea. The best strategy for Taiwan is to go global, promoting multilateral liberalisation globally and regionally as a deliberate strategy to strengthen and re-balance economic relations with the mainland.

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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 22865.

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Date of creation: Jan 2004
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Handle: RePEc:eab:tradew:22865

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Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org
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Related research

Keywords: Taiwan; East Asia; Pacific; liberalisation; World Trade Organization; WTO;

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References

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  1. Abeysinghe, Tilak & Lu, Ding, 2003. "China as an economic powerhouse: Implications on its neighbors," China Economic Review, Elsevier, vol. 14(2), pages 164-185.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Taiwan in from the cold, with Chinaâ??s blessing
    by Peter Drysdale in East Asia Forum on 2010-11-08 01:00:55
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Cited by:
  1. Shiro Armstrong, 2010. "Taiwan's Asia Pacific Economic Strategies Post-ECFA," EABER Working Papers 22810, East Asian Bureau of Economic Research.
  2. Dinda, Soumyananda, 2013. "Climate Change Creates Trade Opportunity in India," MPRA Paper 50636, University Library of Munich, Germany, revised 14 Oct 2013.
  3. Shiro Armstrong, 2007. "Measuring Trade and Trade Potential: A Survey," Asia Pacific Economic Papers 368, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
  4. Dinda, Soumyananda, 2011. "Climate Change and Development: Trade Opportunities of Climate Smart Goods and Technologies in Asia," MPRA Paper 34883, University Library of Munich, Germany, revised Nov 2011.
  5. Khadan, Jeetendra & Hosein, Roger, 2013. "New Empirical Insights into the “Natural Trading Partner” Hypothesis for CARICOM Countries," MPRA Paper 50493, University Library of Munich, Germany.
  6. Soumyananda Dinda, 2011. "Trade Opportunities for Climate Smart Goods and Technologies in Asia," Working Papers 2011/16, Maastricht School of Management.

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