‘China tensions a barrier to Taiwan free-trade deal’

Taiwan’s top representative in Canberra has lamented Australia’s seeming lack of interest in a free-trade agreement with the Chinese island nation.

Elliott Charng.

Taiwan’s top representative in Canberra has lamented Australia’s seeming lack of interest in a free-trade agreement with the Chinese island nation, fearing Beijing’s influence is thwarting an economically beneficial deal.

Elliott Charng, who became Taipei’s de facto ambassador in Canberra in 2016, told The Australian he was disappointed a deal had not eventuated despite encouragement from the Turnbull government.

“Former trade minister Steven Ciobo had talked about it several times, so we were confident,” Mr Charng said. “But unfortunately during the last years we have been waiting for the right timing.”

Mr Charng also said face masks and contact tracing had been the secret to Taiwan’s remarkable success in fighting the coronavirus. The nation of 24 million people has recorded just seven deaths during the coronavirus pandemic, compared to well over 800 deaths in Australia.

Also, Taiwan’s GDP fell 0.6 per cent in the second quarter of the year, compared to 7.6 per cent in Australia and more than 12 per cent in New Zealand.

“Our experience fighting SARS in 2003 allowed us to react quickly,” Mr Charng said. “Baseball games were still played, schools and restaurants were open, there was no shutdown.”

The Australian understands China made it clear to the Turnbull government that it would not tolerate Canberra’s signing a free-trade agreement with Taiwan, ­encouraging Mr Ciobo to instead pursue a free-trade agreement with Hong Kong, which came into effect this year.

Federal Liberal National MP Ted O’Brien, who recently called for a free-trade agreement with Taiwan, said it was “a good match and consistent with the need to ­diversify our trading relations”.

“Taiwan is the only market in our top 10 export markets with whom we do not have a free-trade agreement,” he said.

The Coalition government has ­negotiated free-trade deals with South Korea, Japan, China and Hong Kong since 2013. Singapore, Japan and New Zealand, Mr Charng’s previous posting, have trade deals with Taiwan.

“We in Taiwan have a very strong will to have this kind of agreement, and we’d prefer a comprehensive one: goods and also services,” Mr Charng said, suggesting the island nation would import far more agricultural products.

“Our economies are complimentary; a free-trade agreement will not only benefit Taiwan but also Australia,” he said.

In 2019, Australia sold $12bn worth of exports, mainly resources including iron ore and coal, to Taiwan, and bought $5.4bn worth of imports, mainly computers and telecommunications equipment.

“Taiwan’s economy is bigger than it might seem to many Australians, and we have a similar population,” Mr Charng said.

Opposition trade spokeswoman Madeline King said Labor would “explore” stronger trade links if in government. “A free-trade agreement is not necessarily a precursor to strong trading links,” she added.

Taiwan, with which Australia has no formal diplomatic relations, is about half the size of ­Tasmania and its GDP per capita is 2½ times that of China.

“In Taiwan, if you go to public areas you have to wear a mask, and especially in the subway system,” Mr Charng said. “It’s not the law, there’s no penalty, but the government urges people to wear masks, and Taiwanese people do it without any complaint,” he said.