Entering a new era of Taipei-Tokyo cooperation

(CNA)

Over the past 12 months, Taiwan-Japan relations have entered an unprecedented era of closer cooperation and exchanges. This improvement, which capitalizes on the countries’ economic strengths and strategic goals, has seasoned bilateral ties with greater trust and purpose as well as bolstering regional stability.

While credit for this healthy state of affairs can be shared by the leadership of both nations, it is fair to state that the lion’s share should rest squarely at the feet of ROC President Ma Ying-jeou and his Kuomintang administration. Since taking office in May 2008, Ma has tirelessly championed pragmatic policies based upon the belief that economic development is key to creating a virtuous cycle and reducing tensions in the Asia-Pacific region.

For Taiwan and Japan, this approach has delivered wide-ranging benefits, from the signing Sept. 22 of a landmark investment protection arrangement to the commencement in October last year of direct flights between Taipei Songshan Airport and Tokyo’s Haneda Airport.

Concluded in Taipei by Peng Run-tsu, chairman of Taiwan’s Association of East Asian Relations, and his Japanese counterpart Mitsuo Ohashi of the Interchange Association, the pact represents an unyielding commitment on the part of the ROC government to promoting balanced external relations with diplomatic allies and partners around the world. It also confirms that Taiwan is increasingly viewed as a liberalized and internationalized business environment, appealing to foreign businesses and multinational firms seeking long-term investment partnerships.

Under the terms of the arrangement, the two sides will deepen bilateral economic links, promote expanded trade, clear investment hurdles and better protect investor rights. Capitalizing on Taiwan’s manufacturing clout and leading-edge R&D capabilities, the pact paves the way for the island to further rise as a regional center for global exports while enhancing its appeal as a destination for Japanese investment.

Of equal importance, the arrangement recognizes the highly complementary nature of Taiwan and Japan’s industrial structures, and will contribute to the acceleration and integration of respective supply chains. This is a crucial step in Taiwan’s economic development, and one that opens up a host of new opportunities for local firms and Japanese companies seeking to expand their presence on the island while accessing lucrative regional markets.

In many ways, the pact was long overdue: Japan is Taiwan’s second largest trading partner and a major supplier of foreign investment and high-tech smarts, having invested nearly US$16.5 billion in the island over the past 50 years. Add last year’s bilateral trade figure of US$70 billion—an increase of 37.85 percent from 2009—into the mix and it is easy to see why this arrangement is a logical development in Taipei-Tokyo ties.

But the real juice of the pact comes from the Cross-Straits Economic Cooperation Framework Agreement (ECFA). The history-making deal has well and truly sold Japanese firms on the merits of setting up offshore backup production bases in Taiwan, especially in the wake of the March 11 earthquake and tsunami that devastated the country’s northeast.

Although the human, social and economic costs of the disaster have been heavy for Japan, the event has an upside in that it allowed the government and people of Taiwan to demonstrate compassion for their longstanding friend. No time was wasted in providing relief supplies, medical aid, rescue personnel, emergency funding and public donations to help Japan navigate its trials and tribulations.

The swiftness of Taiwan’s response deeply touched the Japanese public, reminding them of the bonds of history and culture shared by both nations. This was evidenced Sept. 19 when a six-member team completed a 120-kilometer swim from Yonaguni Island in Japan to Cape Tofu in northeastern Taiwan’s Yilan County.

Welcomed ashore with great gusto by government officials and local residents, the Japanese swimmers later presented ROC Foreign Minister Timothy Chin-tien Yang with letters of gratitude for Taiwan’s post-disaster support penned by the governors of Iwate, Miyagi and Fukushima—prefectures hardest hit by the magnitude-9 earthquake and tsunami.

This touching gesture underscores the friendship that exists between the two countries, reaffirming the wisdom of resuming direct flights between Taipei Songshan Airport and Tokyo’s Haneda Airport Oct. 31, 2010, after a three decade-plus hiatus.

For Taiwan and Japan, reopening the route was a significant step in bolstering a bilateral trade and cultural framework that reflects the reality of Asia’s emergence as a global power center. It also fits nicely with the government’s plan to integrate Taiwan into the most important flight route network in East Asia. Once negotiations linking Songshan with Seoul’s Gimpo International Airport are finalized, Taipei will be at the center of a dynamic aviation hub extending to Shanghai Hongqiao International Airport.

Building on this progress, negotiations are under way between Taipei and Tokyo to open their skies, removing restrictions on flight destinations and the number of services. If the agreement comes off, passengers can look forward to more convenient services and lower ticket prices. This represents potentially another major breakthrough in bilateral relations and a boon for local carriers and the tourism industry.

With Taipei-Tokyo exchanges on the up and up, the sky is the limit for this potential-laden relationship. Working with a trustworthy and reliable partner such as Japan is in the best interests of the ROC government and people of Taiwan. The process must not be interrupted, with both nations allowed to fully benefit from the greater regional stability and prosperity this cooperation is delivering.

John Wren is a freelance writer based in Keelung. These views are the author’s and not necessarily those of Taiwan Today. Copyright © 2011 by John Wren

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