The Taiwan Banker

After more than a decade of preparation, Taiwan in September formally applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Its application was submitted six days after China’s. In the subsequent procedures, all member states will hopefully agree to Taiwan’s smooth ascension to this important economic and trade cooperation organization. This move signals Taiwan’s determination to deepen its economic integration with the world irrespective of diplomatic challenges and be part of an important forward-looking trade agreement. Taiwan sees trade playing its due role in both local and global growth. Notwithstanding its own economic and trade development, Taiwan has been shrouded in the shadow of China’s rapidly growing international influence over the past 20 years, and has been unreasonably excluded from international economic and trade cooperation institutions. In the World Trade Organization (WTO), Asian Development Bank (ADB), and Asia-Pacific Economic Cooperation Conference (APEC), where it still holds seats, its naming and rights are still subject to biased treatment. Moreover, in certain institutions adjacent to the United Nations (which implies sovereign status), such as the International Monetary Fund (IMF) and World Bank, Taiwan is directly excluded from participation. Given this international economic and trade organization structure, despite its economic and trade volume and production capacity, Taiwan seems to float in outer space, outside the earth's economy. More worrying, in contrast to countries like South Korea and Singapore, in some financial policy respects, Taiwan behaves as a marginalized country, as if it has become accustomed to a feeling of disappearance, gradually losing the ambition to strive for equal treatment. Therefore, in the face of China's preemptive application, some public commentators have disappointedly given up on its priority entry to the CPTPP. This application process may repeat the process of more than 30 years ago, which also featured an arrogant request from China that Taiwan not join the WTO before it. If anything, China's influence has grown sharply since then. However, in recent years, many countries have begun pushing back against Beijing’s assertiveness. They now have a clearer understanding of the deeper implications of China’s economic rise and ideological differences between Beijing and market democracies. For its part, Taiwan has deepened engagement with the international community in the common pursuit of democracy over the past few years, helping the world to better see Taiwan up close and understand it. In particular, Taiwan has worked hard to help the world during the pandemic, receiving friendly responses. This time, when Taiwan bravely knocked on the door of the CPTPP, we heard warm responses from Japan and Australia. Perhaps in time, we will eventually get the opportunity to enter. Take the financial industry as an example. As Huang Tien-mu, Chairman of the Financial Supervisory Commission (FSC), said at the Legislative Yuan, “The requirements of CPTPP for financial services are almost the same as the current FSC regulations.” Clearly, Taiwan’s legal environment has long been capable of welcoming further integration with the world, a standard that China has not yet reached. Hopefully, Taiwan can use participation in the CPTPP to help financial institutions involved in international asset management and the New Southbound Policy give full play to their advantages in capitalization to expand their operations. “Taiwan itself cannot become a stumbling block in its application for membership.” The bipartisan desire to join should not be hindered by a small number of unscientific and irrational people. The thinking of all international economic and trade cooperation is give and take – that is, compromise and concession. Therefore, some degree of openness in negotiations should not be regarded as failure. We absolutely have the strength to enhance the competitiveness of the impacted industries under a democratic system; we also have the strength to enable Taiwan to create more and better business opportunities with other economies without having to inhibit the development opportunities of others. With this rare international opportunity, Taiwan should use its economic and trade strength to go on the offensive, build international friendships, and expand its economic and trade space.