WTO basis for CECA talks: Yiin

But none of them flatly denied.

Yiin Chii-ming, minister of economic affairs, commented on a Washington Post story on the CECA which Taipei may sign with Beijing, stressing negotiations within the framework of the World Trade Organization are necessary.

“Fundamentally,” Yiin said in a TV interview, “the negotiations for a CECA must be done within the framework of the WTO, of which both Taiwan and China are members.” WTO isn't a U.N. organization, Yiin emphasized.

The United Nations is a “politically-oriented” world body, from which Taiwan was ousted in 1971. It officially regards Taiwan as a province of the People's Republic.

That seems to have compelled Yiin to underline the WTO framework for CECA negotiations, which neither Beijing nor Taipei has officially said have started.

“Under these circumstances,” Yiin said, “we would, in line with the principle of (national) dignity and equality as well as the Taiwan first principle, negotiate for an important policy that would greatly benefit the people.”

He circumvented because the Washington Post quoted President Ma Ying-jeou as saying the CECA is a “certainty” while hesitating to respond directly to questions about whether it would be tantamount to acknowledging Taiwan belongs to China.

Chang Yung-kung, deputy secretary-general of the Kuomintang, urged the signing of the CECA as soon as possible despite the opposition of the Democratic Progressive Party.

“We simply cannot be cowered into backing down by the American medium citing some Chinese academics as equating the signing of the CECA as a necessary condition for Chinese unification,” said Chang, who doubles as director of Chinese affairs of the ruling party.

Both the DPP and its ally Taiwan Solidarity Union are deadly opposed to the CECA, because they want independence for the island nation which they wish to separate completely from China.

The CECA is a campaign promise Ma made in the run-up to the 2008 presidential election. But his China policy remains “no unification (with China),” “no independence (for Taiwan),” and “no hostilities (across the Strait).”

Almost all business and industry groups have enthusiastically backed that policy, the signing of the CECA in particular, Chang said.

“It's needed urgently,” Chang said, “because the ASEAN plus one is getting under way next year.” It's a free trade zone including all 10 Association of Southeast Asian Nations member states and the People's Republic.

If Taiwan is kept out of the free trade zone because it doesn't sign the CECA, its exports will be taxed by all ASEAN members and China. Taiwan's export trade may be ruined beyond repairs.

“Should Taiwan back down (by agreeing not to sign the CECA,” Chang warned, “the cost it has to pay would be unimaginable.”

In a statement, the Ministry of Economic Affairs said Taiwan would never accept Beijing's “one country, two systems” demand in negotiations for the CECA. But the statement pointed out the ASEAN states and the People's Republic started cutting to zero the 10 percent tariff on exports and imports on Jan. 1.

China collects a 6.5 percent duty on most imports from Taiwan.

Without a mechanism like the CECA, the statement added, Taiwan would be supplanted by other exporters.

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