Taiwan Finds (Trade) Love…in ASEAN

By Rupert Hammond Chambers, President, US-Taiwan Business Council

For an Asian Tiger such as Taiwan it may seem ridiculous to suggest that the past two months have been the most exciting in Taiwan’s economic history since the 1950s – but that is the case. Taiwan is on a roll and there’s no reason to believe that will stop in the next 20 months.

This summer, Taiwan signed an Economic Cooperation Framework Agreement (ECFA) with China which when completed several years from now will represent a fully comprehensive Free Trade Agreement (FTA). This agreement seeks to normalize and then liberalize a troubled economic history with benefits not just to Taiwan and Chinese companies, but to the many global businesses whose interests straddle the Taiwan Strait.

The ECFA also gives Taiwan a significant leg up in its ongoing competition with its principal competitor, South Korea. The South Korean press has been filled with analysis on the implications of ECFA for Korean interests in China. They take a grim view of the impact this deal will have on their equities, and it suggest it may spur their own attempts to

commensurate a trade deal with China. In the meantime, Taiwan has a clear advantage over its main competitor.