Taiwan on Wednesday (September 22) announced its formal application to join the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP), which is less than a week after China announced its application to join the agreement.
Although Taiwan has expressed its interest in this economic organization many years ago, and has conducted informal consultations with the existing member states of the agreement, applications for accession before and after the two sides of the strait may further complicate the situation. Beijing regards Taiwan as part of its territory and has repeatedly strongly opposed its independent entry into international organizations.
Taiwan’s Executive Yuan spokesperson Luo Bingcheng stated on Wednesday (September 22) that the Taiwan authorities have formally handed in the application for accession to New Zealand, the depositary of the CPTPP, and notified all CPTPP member states to seek support.
The President of the Executive Yuan Su Zhenchang asked relevant departments to carry out preparations for the coordination of laws and regulations and to do a good job in the preparatory work for negotiations.
China’s Ministry of Foreign Affairs stated on Thursday (September 23) that China “resolutely opposes any country’s official exchanges with Taiwan and resolutely opposes Taiwan’s accession to any official agreement or organization”.
Joining the CPTPP to boost the economy has always been the goal of Taiwan’s President Tsai Ing-wen. The DPP authorities have always regarded Taiwan as a de facto sovereign state and have taken a tougher attitude towards mainland China. Beijing has exerted more political and economic pressure on Taiwan in recent years.
Previously, Taiwan failed to join the China-led Regional Comprehensive Economic Partnership Agreement (RCEP), which includes ten ASEAN countries, as well as South Korea, China, Japan, Australia and New Zealand, and is known as the largest free trade in the world. Area.
The predecessor of CPTPP is the “Trans-Pacific Partnership Agreement” (TPP), which was originally an agreement promoted by former US President Barack Obama to counterbalance China’s influence during his tenure. It has a high threshold for trade liberalization. But the successor, President Donald Trump, announced his withdrawal from the agreement in 2017.
After the United States announced its withdrawal from the TPP, Japan led the negotiations to reorganize the CPTPP. In 2018, 11 countries including Australia, Canada, Chile, Japan, Mexico and New Zealand signed the agreement in Santiago, Chile.
Chinese President Xi Jinping stated for the first time in November last year that China will actively consider joining the CPTPP. The Ministry of Commerce of China announced on September 16 that the country had submitted a written letter to New Zealand applying to join the CPTPP.
CPTPP has many regulations on labor standards, environmental protection and dispute settlement. Taiwan’s economy is more market-oriented than mainland China, which may reduce the difficulty of running into the framework of Taiwan and the CPTPP, but since joining the CPTPP must obtain the consent of all the existing 11 member states, applications from China and Taiwan may be met by any member. China’s procrastination and deterrence.
After China announced its application to join the CPTPP last week, Taiwan’s Minister of Economy Wang Meihua expressed “concern”. She expressed the hope that this will not affect Taiwan’s application for membership.
According to Taiwan media reports, Deng Zhenzhong, the chief negotiator for economic and trade negotiations of the Taiwan Executive Yuan, said that after weighing various circumstances, the Taiwan authorities filed an application under the name “Taiwan, Penghu, Jinma, and individual tariff areas” because the name is the least controversial.
“Taiwan, Penghu, Jinma, Individual Tariff Area” (TPKM) is currently the name of Taiwan’s membership in the World Trade Organization (WTO), and Taiwan and other countries sign economic and trade agreements in this name. Taiwan’s accession to the Asia-Pacific Economic Cooperation (APEC) and the Organization for Economic Co-operation and Development (OECD) uses “Chinese Taipei” as the name.
Reactions from all sides
After submitting an application to join the CPTPP in Taiwan, China’s official media “Global.com” immediately published an article on the topic of “Troubleshooting.”
The report quoted Zhu Fenglian, a spokesperson for the Taiwan Affairs Office of the State Council of China, as saying that Taiwan’s participation in regional economic cooperation “must be based on the one-China principle and resolutely oppose China’s establishment of diplomatic relations with the Taiwan region to negotiate agreements with sovereign meaning and an official nature”.
The Ministry of Foreign Affairs of China also stated on Thursday (September 23) that China “resolutely opposes any country’s official exchanges with Taiwan and resolutely opposes the Taiwan region’s accession to any official agreement or organization.”
According to Kyodo News, Japanese Foreign Minister Toshimitsu Motegi, who is visiting New York, “welcome” Taiwan’s application to join the CPTPP. Japan is the rotating presidency of the CPTPP.
Motegi Toshimitsu said that Taiwan is an extremely important partner of Japan, and the two sides share common basic values. Tokyo will handle this matter “based on a strategic viewpoint and public understanding.”
This is in contrast to Japan’s previous cautious attitude towards China’s application to join the CPTPP. Earlier, Japan’s Minister of Economic Rebirth, Yasumi Nishimura, said that whether China can join depends on whether it is determined to comply with high standards. Finance Minister Taro Aso said, “I just feel that China today is a state where it can be a new member?”
Although the United States has withdrawn from the relevant agreement, the Washington-based US-Taiwan Business Council welcomed Taiwan’s decision.
According to the association, Taiwan has advantages in technology, investment and supply chain and will be an important value partner. It calls on CPTPP member states to consider Taiwan’s application without being intimidated by China, and the US government should also support it.
In addition to China and Taiwan, in June this year, Britain officially launched negotiations to join the CPTPP, and Thailand also expressed interest in joining the agreement.
Diplomatic wrestling
As Beijing and Taipei each seek to influence existing members of the CPTPP, observers believe that the two applications may trigger a diplomatic struggle.
Currently, Taiwan has signed bilateral free trade agreements with New Zealand and Singapore, the current member states of the CPTPP.
After submitting the application in Beijing, Singapore first expressed its welcome, and then Malaysia also expressed its willingness to see China join.
On the other hand, Mexico is cautious. “Nikkei” analyzed that if mainland China joins, it will become difficult to attract the return of the United States, which had previously withdrawn from the TPP, and Mexico’s largest trading partner is the United States, so it is difficult for Mexico to support it.
Australia also expressed reservations about China’s accession to the CPTPP. China-Australia relations have dropped to a freezing point due to Australia’s allegations of infiltration of China and calls for independent investigation of the source of the new crown epidemic. China has imposed import restrictions on Australia.
Australian Trade Minister Dan Tehan said that China will not support the start of negotiations until China stops its trade crackdown on Australian exports and resumes high-level contacts with the Scott Morrison government.
At the same time, Taiwan’s entry into the CPTPP may also encounter resistance due to the Japanese food ban. Since the 2011 nuclear disaster in Fukushima, Japan, Taiwan has banned the import of food from Fukushima and the surrounding four places. The Taiwanese public voted against the resumption of imports in the referendum, which triggered dissatisfaction in Japan.
Relations across the Taiwan Strait are still in a state of continued tension. China just announced a ban on the import of Taiwanese lotus mist and custard apples last week on the grounds that harmful organisms have been detected. Chen Jizhong, chairman of the Council of Agriculture of Taiwan’s Executive Yuan, said that China’s move was for political purposes. The Taiwan authorities have indicated that they may appeal to the World Trade Organization (WTO) to resolve the dispute.