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China agrees to WTO talks over steel: Taiwan

TAIPEI (December 06 2002) : China has agreed to bilateral talks with Taiwan over a steel dispute under the auspices of the WTO, a government official said on Thursday, a move that would end a three-year freeze on dialogue and could lead to expanded commercial ties.

China has considered Taiwan a renegade province since the end of the civil war in 1949 and Beijing, under its "one China" policy, insists the island be brought back into the fold, by force if necessary.

While analysts were reluctant to call China's agreement to talks a breakthrough, Taiwan has long called for direct talks with mainland officials, saying anything can be discussed, even the one-China policy.

"From our understanding, China's WTO (World Trade Organisation) representative has agreed to bilateral consultations after a request by the Taiwan side," said economics ministry spokesman Berton Chiu.

"However, the details of the talks are being worked out in Geneva," said Chiu, referring to the WTO's headquarters. "It is a very welcome development. Taiwan has always sought dialogue with China under WTO," said foreign ministry spokeswoman Chang Siao-yue.

While both China and Taiwan have been members of the WTO for almost a year, China's representative has refused to meet or communicate with his counterpart from Taiwan.

If talks between the two political rivals occur, it would be the first direct communication in over three years since Taiwan's then president Lee Teng-hui angered China by declaring cross-strait relations "special state to state".

It is the latest in a series of moves bringing closer economic integration after both sides joined the WTO, and brightens the prospects for direct transportation ties across the Taiwan Strait.

On Wednesday, Taiwan gave final approval for its airlines to fly to China for the first time, allowing indirect charter flights to Shanghai, but only during the Lunar New Year holiday. Although the flights will have to stop in the territories of Hong Kong or Macau, passengers will not have to change planes as they do now.

"It may signal a political (warming), but I think China will keep talks narrowed to commercial issues," said George Tsai, a political scientist at the Institute of International Relations at National Chengchi University in Taiwan.

When Taiwan and three other WTO members complained about China's steel tariffs, the Chinese held bilateral discussions with each member except Taiwan. Only after Taiwan threatened to lodge a formal complaint did it write a letter to Taiwan's representative. But it was in Chinese, and not in any of the WTO's official languages.



Courtesy Business Recorder

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