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Why Taiwan should be part of the 2nd-round TPP deal

I congratulate Singapore for its role in the complex 12-nation negotiations for the Trans-Pacific Partnership (TPP) agreement concluded in October (“12-nation TPP trade deal reached after marathon talks”; Oct 6).

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Mao Chi-kuo, Premier, Taiwan

I congratulate Singapore for its role in the complex 12-nation negotiations for the Trans-Pacific Partnership (TPP) agreement concluded in October (“12-nation TPP trade deal reached after marathon talks”; Oct 6).

I take this occasion to reiterate Taiwan’s interest in joining the trade bloc. Taiwan is an important Asia-Pacific economy, with a vital role in the region’s supply chain.

Taiwan is vigorously promoting trade liberalisation in response to regional integration and global economic challenges. It is also working with other Asia-Pacific Economic Cooperation members to push infrastructure programmes that have created visible benefits to the international community.

Close economic connections such as these are foundational to regional peace and stability, which is why Taiwan must be included in the second round of TPP negotiations.

Over the past decade, Taiwan has tripled its trade volume with Asia-Pacific countries. Its trade volume with the 12 TPP members has reached US$200 billion (S$283 billion) a year.

As the world’s 27th-largest economy, Taiwan contributes considerably to industry, technology and investments around the globe, establishing long-term alliances with international brands and building cooperative ties with TPP member states.

Further, TPP countries are important destinations for Taiwan’s foreign direct investment, while Taiwan’s import market, worth nearly US$300 billion a year, is a lucrative target for TPP exporters. If Taiwan were excluded from the trade bloc, it would spell a major loss for the Asia-Pacific supply chain.

Taiwan and Singapore have long enjoyed close ties. In 2013, the two sides signed the Agreement between Singapore and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Partnership.

This pact has been implemented with great success, attesting to Taiwan’s readiness to join the TPP and also bolstering bilateral trade ties. Last year, trade volume between Taiwan and Singapore climbed to US$46.2 billion.

Taiwan’s inclusion in the TPP would draw more Taiwanese investments to Singapore, which is an appealing destination owing to its innovations in biomedicine and information and communications technology. Eliminating trade barriers to Taiwan would also boost exchanges in transport and financial services, helping Singapore to consolidate its regional supply chains and expand its economic and trade base in this part of the world.

I appeal to Singapore to support Taiwan’s inclusion. Taiwan’s TPP membership would benefit both our economies and support our common desire for peace and prosperity in Asia Pacific.

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