Commentary:Island dispute delays multi-lateral FTA between China,Japan,and South Korea Max Wang,Taipei;Jackie Chang,DIGITIMES[Friday 28 September 2012]The recent island disputes between Japan and China,and Japan and South Korea are likely to delay the formation of a multi-lateral free trade agreement(FTA)between the three countries.This is considered good news for Taiwan-based exporters.
Nevertheless,once the three countries return to calm,Taiwan still needs to face the impact of the FTA.The economies of China,Japan,and South Korea are seen as the most important in the region and continue to have great business potential.Once an FTA has been signed by the three countries,firms in each economy will benefit from low barriers and zero tariffs.However,Taiwan is not included in this FTA,hence exporters will face significant negative impact.
For Taiwan's economic and industrial development,cooperating with Japan-based firms has been favored.Taiwan's Ministry of Economic Affairs has been strengthening business relations between Taiwan-and Japan-based firms.The current island dispute between China and Japan presents an opportunity Taiwan-based firms to increase trade with Japan.
Some firms believe Taiwan can become a platform between Japan and China.The current dispute has been causing difficulty for Japan-based firms to promote products in China and if Taiwan-based firms can find a solution for Japan-based customers,ties can be strengthened and Taiwan will not be marginalized.
