[asia-apec 1832] Free-trade zone mulled for Greater China minus Taiwan

[Aaron James]

Free-trade zone mulled for Greater China minus Taiwan 
 
South China Morning Post Nov 28, 01
SANDY LI and STEPHEN SEAWRIGHT
   
The mainland government is seriously considering setting up a free-trade
zone between China, Hong Kong and Macau to enhance the economic
relationship between them, according to China's chief trade negotiator,
Long Yongtu. "We should take a positive attitude towards this kind of
proposal," he said. 
  
Mr Long expressed misgivings about including Taiwan in the proposed
free-trade zone, considering the political barriers. "It is quite difficult
to discuss this issue with Taiwan, as they are even unwilling to commit to
open direct links with the mainland." 

Beijing has demanded Taiwan reopen "three links" across the Taiwan Strait,
including postage, communication and commercial connections. Mr Long hoped
Taiwan would open more economic links with the mainland following both
sides' accession to the World Trade Organisation. 

"We hope that the Taiwanese authorities will seize this opportunity to
realise an even closer economic trade relationship between the two sides,"
he said. 

Mr Long emphasised the proposal was not in breach of its WTO agreement, as
other members had formed similar zones such as the European Union and the
North American Free Trade Agreement. 

China shared many of the concerns of other countries in trade negotiations,
he said, and agriculture was one sector where China could contribute much.
"China can play a very constructive role in those negotiations," he said. 

Mr Long admitted China would face difficulties implementing the WTO accord
across the whole country and drew an analogy with former leader Mao
Zedong's Long March during the Chinese civil war. 

"If China's WTO accession was a Long March then enforcement to some extent
is another Long March," he said. 

------------------
Aaron James
26 Bluebell Avenue
Winnipeg, Manitoba R2V 2M3
Phone: 204-339-4484
Email: aaronj at interchange.ubc.ca
------------------