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Taiwan-ASEAN free trade deal always a possibility, says scholar

Bogor, Indonesia -- The stable development of Taiwan's economic ties with China is good news for the region and could make it easier for Taiwan and the Association of Southeast Asian Nations (ASEAN) to sign a free trade agreement (FTA), an Indonesian scholar said Wednesday.

Dewi Fortuna Anwar, the program and research director at Indonesian think tank The Habibie Center, said she hoped improved China-ASEAN and China-Taiwan relations would ease Beijing's sensitivity toward stronger economic relations between Taiwan and ASEAN.

Anwar would not comment directly on the potential impact of a proposed cross-Taiwan Strait economic cooperation framework agreement (ECFA) on free trade deals between Taiwan and other countries because she was not familiar with the ECFA. But she said "the possibility always exists" for a free trade pact between Taiwan and ASEAN.

"Taiwan is a member of the WTO and APEC. An FTA is an economic issue, not a political one, that depends on the two parties' interests," she said. "I don't see any serious obstacles."

Anwar was speaking in an interview with CNA in Bogor, where the center held a forum on "Taiwan-Indonesian Dialogue" Dec. 7-8 along with the Taipei Economic and Trade Office in Jakarta, Taiwan's de facto embassy. It was the second event jointly organized by the two organizations since 2007.

Participants were divided into four groups to discuss political, economic, social and cultural, and non-traditional security issues.

Huang Kuei-po, head of the Ministry of Foreign Affairs (MOFA) Research and Planning Committee, said at the forum's closing session that it was meaningful for the two sides to be able to work out joint strategies to resolve regional challenges facing both countries.

As civil exchanges can be helpful in achieving the goal, he hopes the two nations will begin bilateral cooperation and exchanges based on the conclusions of the dialogue, Huang added.

According to the Habibie Center, a complete report of the conclusions will be published in January, which will be presented to the Indonesian government and congress as a policy reference.

Although Taiwan and Indonesia do not have diplomatic ties, economic ties are growing. According to Taiwan's customs statistics, bilateral trade grew at an annual rate of 25.51 percent in 2008 to reach US$10.92 billion.

Indonesia is the ninth largest source of Taiwan's imports and Taiwan's 14th largest export market.

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