The American Chamber of Commerce (AmCham) in Taipei Tuesday called for direct transportation links across the Strait and investment flows, given closer economic ties between the island and China.
In its 2006 White Paper, AmCham also encouraged Taiwan to proceed with its push for a free trade agreement (FTA) with the United States.
“The free flow of goods to and from China is essential to regional economic integration and, on the company level, to the implementation of effective business plans,” it said.
Direct transportation links have been cut since China and Taiwan’s split in 1949 at the end of civil war.
With those links, “Taiwan will be able to leverage its core competencies as a world trader in order to rejuvenate the domestic economy,” AmCham President Tom Johnson said.
Citing national security and sovereignty as major concerns, Taiwan’s ruling Democratic Progressive Party (DPP) Tuesday blocked an opposition vote on a bill to establish direct transport links with rival China. It was the third time in less than a month that the bill was shot down.
Under Taipei’s ban on direct links across the Taiwan Strait, all merchandise and passengers transit via third ports, mainly Hong Kong.
AmCham said that in the absence of direct links, Taiwan was also separating itself from the global economy.
AmCham urged Taiwanese authorities to continue negotiating with the United States on the proposed free trade agreement, but said there are some challenges lying ahead of the island before such a pact could be forged.
Taiwan has been pressing for the signing of an FTA with the United States fearing it would otherwise be marginalized as rival China was seeking similar trade pacts with countries in the region.
