The fate of Chinas effort to join the
World Trade Organization is unclear;matters involving internal deliberations in Beijing
usually are. There is always the possibility that China is waiting until the last minute
to wrap up WTO negotiations, hoping that the Clinton administrations desire to build
a record of achievement for its engagement policy will force Washington to lower the bar
for WTO membership. The emerging consensus, however, seems to be that China is simply
unwilling to tackle the domestic reforms that WTO membership requires.
In the spirit of If I dont win, Ill take my ball and go home,
China is also insisting that if it cannot become a WTO member, Taiwan cannot be allowed to
join either. Surprisingly, the United States seems willing to tolerate this Chinese
petulance, though doing so runs directly counter to U.S. interests. The United States
should press for Taiwans membership in up coming WTO negotiations whether or not
China is admitted.
This latest example of a convoluted and counterproductive stance toward the greater China
region is but one of many strange results of the one China policy. Since its
establishment in the 1970s, virtually every major assumption underlying the one China
policy has dramatically changed: The Soviet Union has collapsed, ending the Cold War;
Taipei has transformed itself from an authoritarian regime to a functioning democracy; and
Beijing has moved from being a questionable ally to a possible enemy.
Still, the one China policy persists largely unchanged, and Beijing expresses outrage at
even the smallest evolution in U.S. relations with Taiwan, as demonstrated by the yearlong
tantrum following the visit of Taiwans President Lee to his U.S. alma mater. As a
result of this policy, the United States continues to refuse to allow senior Taiwanese
officials to visit the United States or even leave their planes while they are refueling
in Hawaii, senior U.S. officials are generally not allowed to visit Taiwan, and this
summer the United States effectively sided with Beijing against Taipei when President Lee
suggested that some changes in the Beijing-Taipei dialogue were long overdue.
Now the State Department seems poised to acquiesce to another unreasonable PRC demand
pertaining to Taiwan. While Chinas unwillingness to embrace economic reforms such as
opening its market to agricultural and manufactured imports and reforming state-owned
enterprises has slowed its WTO application to a near standstill, Taiwans application
has moved along smoothly. From the outset of accession talks, Taipei agreed to accept the
full WTO disciplines applied to developed countriessomething Beijing has steadfastly
refused to consider. It also sought membership as a customs territory, not an independent
country, to avoid offending Beijing. Largely because of Taipeis positive attitude,
Taiwan has concluded bilateral WTO accession talks with all interested countries,
including the United States, the European Union, and Japan.
Although China remains outside the WTO, Beijing has insisted that Taiwan not be allowed to
join until it is admitted. This position is not only arrogant but also surprising, in that
Hong Kong was allowed to enter the WTO as a separate entity before control reverted to
China. Now China appears to be attempting to recruit allies like Hong Kong and Pakistan to
work its will, although neither has any unresolved trade issues with Taiwan. Hong Kong, in
fact, concluded a bilateral WTO accession agreement with Taipei some time ago.
Taiwan has looked to the United States, as the de facto senior member of the WTO and the
unofficial arbiter of such matters, to press the case for its membership in the run-up to
the WTO ministerial meeting in Seattle at the end of November. The United States has long
taken the position that the WTO is a trade organization, not a political one, and the
applications for membership by China and Taiwan should be considered separately on their
merits. Obviously, if that is the decision para digm, Taiwan should now be admitted and
Beijing remain outside until it is prepared to accept trade disciplines.
Recently, however, there have been disturbing signs that U.S. resolve is weakening on this
issue. U.S. officials have begun to suggest that Taiwans WTO membership requires
unanimity of support among interested WTO members, a position that effectively gives
Beijing, acting through Hong Kong or another surrogate, veto power over Taiwans
application.
Although it might help to prevent a fit of pique from Beijing, keeping Taiwan out of the
WTO is not in the best interest of either the United States or the WTO. In return for
admission to the WTO, Taipei has agreed to lower hundreds of tariffs and non-tariff
barriers. This market opening would make possible hundreds of millions of dollars worth of
new U.S. exports to Taiwan of products ranging from pork to sophisticated electronics.
Taiwan already imports more from the United States than the PRC; in 1998, total U.S.
exports to Taiwan were $17 billion, and the total for the PRC was only $14 billion. If
Taiwan became a WTO member, it would certainly be among the most promising foreign markets
for U.S. exporters.
Beyond that, the credibility of the WTO is at stake. The WTO was conceived as an unbiased
policeman of international trade, which would facilitate expanding trade and arbitrate
trade disputes without regard for outside concerns. If the WTO allows Taiwan to be
excluded from its membership because of the entirely political concerns of a non-member,
that credibility will be seriously damaged and the precedent will be set for future
political manipulation of WTO negotiations and operations. If the body is used as yet
another diplomatic forum for endless political machinations, it will soon become just
another discredited international organization.
Clinton administration officials are correct in noting that the WTO is a multilateral
body, and Washington alone cannot ordain Taipeis membership. If it chose to,
however, Washington could challenge those countries that stand in Taipeis way on
Beijings behalf and recruit other WTO members to press Taiwans membership.
There is no guarantee that this initiative would succeed, but there is no guarantee that
any of the other trade negotiating initiatives that the United States plans to
pursue through the WTO will succeed either. Still, the United States persists in advancing
controversial initiatives to eliminate tariffs on various industrial products and begin
discussions on integrating labor and environmental issues into the WTO in the face of
considerable, open opposition. Given the stakes for both the United States and the world,
Taiwans WTO application de serves no less an effort.
To put it simply, Taiwan has earned WTO membership. Against considerable domestic
opposition, Taipei has pursued economic re form and built an open, vibrant market economy.
It is clearly more qualified for WTO membership than doz ens of countries that are now WTO
members. The United States has a considerable amount to gain from Taiwans WTO
membership; but beyond that, admitting Taiwan is simply the right thing to
doregardless of whether China is also a member. It would be a mistake to bow to
Beijings unreasonable and
ever expanding interpretation of the out-of-date one China policy and quietly allow Taiwan
to be unjustly denied a seat at the WTO table.
If the Clinton administration is unwilling to take up this cause on its merits,
Taiwans supporters in Congress are well advised to press the issue hard in the next
few weeks. After all, the Constitution assigns Congress primary responsibility for
international trade. This is a matter best not left to diplomats, who seem more interested
in bowing to Beijing than advancing U.S. interests.
Copyright 1999, The Weekly Standard
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