trade potential in Asia depended on resolving the political dispute concerning both
Taiwan’s and China’s participation in the WTO.
(^42) After a decade of effort, Taiwan
was finally granted accession to the WTO on November 11 , 2001 , a day after China
was granted accession. Taiwan entered into the WTO through accession as a
customs territory, and was the only “customs territory” ever admitted to the
multilateral trading system without direct sponsorship by a state exercising diplo-
matic relations on its behalf. While the WTO is now the only major international
organization that permits Taiwan membership,^43 Taiwan has also acquired success
as a member of several regional economic organizations, including the Asian
Development Bank, the Asia-Pacific Economic Co-operation forum, and the
Pacific Economic Co-operation Council.
In addition to entering the WTO, the signing of the Economic Co-operation
Framework Agreement (ECFA) was another recent significant accomplishment.
After the 2008 presidential election, upon KMT’s coming to power, cross-strait
relations came to a thaw after eight years of political pressure. President Ma took a
more dovish approach to China and vouched to rebuild cross-strait relations by
resuming bilateral negotiations with China regarding co-operation on trade and
financial services. After rounds of cross-strait talks, the ECFA was signed on June
29 , 2010 , a preferential trade agreement between the governments of the People’s
Republic of China (China) and the Republic of China (Taiwan) aimed at reducing
tariffs and commercial barriers between the two sides. Signing the ECFA has been
celebrated as the most significant development since the two sides split after the
Chinese civil war in 1949.
According to its advocates, the ECFA can help stabilize and eventually increase
Taiwan’s presence in the Asian market. It is said that the ECFA helps normalize
the relationship between the two sides of the strait, providing both the PRC and the
ROC with a framework for trade and investment under which their businesses may
prosper, and that the ECFA prevents marginalization of Taiwan, making it easier
for Taiwan to arrange trade agreements with other countries.^44 However, signing
the ECFA also courted controversy. Above all, concerns surround the potential
derogation of sovereignty and the need for a public referendum. Critics contend
that the ECFA may present opportunities for businesses, but, just as the actual
drawbacks are precarious, the long-term benefits of the ECFA may be gloomy.^45
(^42) See e.g. Robert P. O’Quinn, “Bringing both China and Taiwan into the World Trade
Organization” ( 1995 – 6 ) 14 Chinese (Taiwan) Year Book of International Law and Affairs 19.
(^43) For the background to and analysis of Taiwan’s accession to the WTO, see Steve Charno-
vitz, “Taiwan’s WTO membership and its international implications” ( 2006 ) 1 Asian
Journal of WTO and International Health Law and Policy 401.
(^44) Ibid.
(^45) See Chi-An Chou, “A two-edged sword: the Economic Cooperation Framework Agree-
ment between the Republic of China and the People’s Republic of China” ( 2010 ) 6
Brigham Young University International Law and Management Review 1.