First Taiwan fruit under Chinese plan hits Shanghai

“Importing fruits without tariffs has lowered our operating costs which will be reflected in fruit prices in China,” said a spokesman for the China-based Taiwan Chi Ku trading company, which managed the import of one of the fruit batches, according to the United Evening News.

“We expect our fruit prices in Shanghai to be lowered by ten percent,” he said.

Chinese President Hu Jintao first made the offer to abolish tariffs for 15 kinds of Taiwan fruits, including betel nuts and pineapples, during a historic visit to China by opposition Kuomintang leader Lien Chan in May.

Taipei and Beijing have since been squabbling over the level of Taiwan government involvement in the deal. Taipei has insisted that its appointed agency, the Taiwan External Trade Development Agency (TAITRA) be involved to protect the rights of farmers. Beijing, which does not recognize the independence-leaning government of Taipei, has shunned TAITRA.

President Chen Shui-bian and other ruling Democratic Progressive Party officials have said China is using the fruit trade as a sweetener to lure farmers— traditionally DPP voters — away from supporting the government.

Ruling party officials also fear that if Beijing bypasses the government here to deal with private groups over trade matters, the DPP administration will look like a regional Chinese government.

Last week Beijing said it would unilaterally lift the fruit import taxes after failing to conclude a deal with Taipei, with government officials here urging farmers to be wary.

Beijing continued announcing more details of the scheme yesterday, saying it would recognize certificates of origin on fruit from private chambers of commerce in 11 Taiwanese towns and counties.

The Chinese customs authorities announced Beijing would recognize the documentation from the private business groups from Taiwan Province, Taipei county, Taipei city, Taichung county, Taichung city, Changhua county, Tainan City, Kaoshiung county, Kaohsiung city, Pingtung county and Kinmen county.

Hard line pro-independence politicians condemned the move.

Taiwan Solidarity Union council convener Ho Min-hao said the government should actively assign private groups or TAITRA to deal with certificates of origin.

He said otherwise the pro-Kuomintang Taiwan Provincial Farmers Association and other groups could become unofficial liaison agencies with China, aiding Beijing’s plans to “seriously undermine the government’s authority.”

Ho said farmers were best protected under the framework of the World Trade Organization (WTO) and claimed China’s unilateral decision to lift the tariffs violated the international body’s regulations.

Meanwhile the KMT urged the government to put aside political considerations and assist the farmers to sell the fruit in China.

“The government should let the farmers make a little money,” said KMT law maker Tseng Yung-chuan, the executive director of the party’s central committee.

DPP council secretary general William Lai attempted to clarify his party’s stance, saying the DPP never wanted to prevent farmers from selling fruit in China or take advantage of Beijing’s tariff-free deal.

“The government has an obligation to provide farmers with adequate information so that they can make their own judgment on what is best for them,” Lai said.

But he warned farmers not to just consider the short-term benefits, claiming they could suffer great losses in the long-term under Beijing’s scheme.

Government statistics show Japan is Taiwan’s largest export market for fruit, occupying 42 percent of all sales. China only accounts for one percent of all fruit exports.

DPP sources said they thought China was using the fruit trade to drum up sympathy for the opposition parties, which have consistently supported Beijing’s offer to lift the tariffs, ahead of the town and county chief elections in December.

“China will use similar gambits in the future if it succeeds in influencing the elections,” one source said.

But other DPP law makers were optimistic.

Legislator Huang Wei-jeh said it would have a limited impact on the year-end elections and the 2008 presidential elections unless problems relating to Taiwan’s fruit surplus worsened.

DPP lawmaker Lin Tai-hua said that it remained to be seen whether Taiwan farmers will profit from the Chinese market because sales remain unknown and transportation costs are still expensive owing to a lack of direct links across the Taiwan Strait.

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