Why Not Taiwan Now? : Beijing should finesse one-China issue, drop opposition to GATT entry

Imagine a world without Taiwan. Beijing would certainly like to, but that’s hardly conceivable now. This booming island nation is among the largest and most successful traders in the world.

Even so, Taipei, still suffering from more than four decades of political isolation,faces the prospect of being shut out of the General Agreement on Tariffs and Trade--the key group of 100 nations that seeks to oversee world trade.

But economic isolation of Taipei makes no sense to anyone--except to its arch nemesis Beijing.

Beijing opposes Taiwan’s application to become a member of GATT because of its “one-China” policy. How smart is that? After all, Beijing’s own GATT application has been on hold since the Tian An Men Square massacre in June of 1989.

Beijing should somehow finesse the one-China issue. After all, Taiwan tried to do just that, exhibiting sensitivity to Beijing when it made its application in January, not as sovereign government but as the “Customs Territory of Taiwan, Penghu, Kinmen and Matsu,” the islands off the Chinese main land.

Where is the United States?

The State Department has expressed concerns about Taipei’s bid, especially since Beijing has backed the U.S. position in the Persian Gulf and the effort for a peaceful solution in Cambodia. But the U.S. trade representative is encouraging GATT membership.

Economic isolation of Taiwan is, practically speaking, impossible. Taiwan is the 13th largest trading nation and the United States’ fifth largest trading partner. Its foreign reserves of $60 billion are second only to Japan’s. Taipei and Beijing both are members of the Asian Development Bank and Pacific Economic Cooperation Council. Although the two have no official ties, Beijing benefits from investment, tourism and capital from Taipei.

Taipei should be allowed to join GATT because as a member it would be obliged to follow trading rules established internationally. Keeping it out is silly.