Wednesday, April 25, 2012

Trade row

"Taiwan that is pitting America, the island’s most important ally, against the vast mass of public opinion—and forcing the government of the recently re-elected president, Ma Ying-jeou, to manoeuvre frantically between the two.
At issue are American exports to Taiwan of meat that contains ractopamine, a controversial growth compound fed to cattle and pigs and which is banned by Taiwan, the European Union and China. The Americans want Taiwan to lift its ban. They point out that 27 countries have found meat from animals fed with ractopamine to be safe for humans, and are asking Taiwan to set maximum residual levels for allowable amounts instead.
Yet public opinion and Taiwanese meat producers vociferously support the ban. They claim that over 100 countries ban the drug (a claim the Americans contest). Toxicologists also argue that residual concentrations of the drug are five to ten times higher in offal, which is eaten by Asians but not often by Americans.
President Ma is caught in the middle. He cannot afford to offend the majority of the island’s citizens. A poll in mid-February found that 71% support the ban even if it harms relations with America. But he also says that getting Taiwan into a position to join the TPP (Trans-Pacific Partnership)  is one of his main goals. His officials want to start trade-liberalisation talks with other countries because they worry that dependence on China will give the mainland too great an influence on the island’s economy. Restarting trade talks with America, suspended almost five years ago in a previous round of arguments over beef (this time over mad-cow disease), is high on Mr Ma’s to-do list. So, seizing the opportune moment immediately after his re-election as president in January, Mr Ma set out to defuse the row.
On March 6th the government put forward a new compromise: it said it supports a “conditional” easing of the rules, under which the ractopamine ban on meat from cattle would be replaced by maximum residue levels, but blanket restrictions would remain on imported offal from cows and on all pork. The cabinet gave no timetable for the plan, and said it would continue to discuss it. The opposition vowed to bring the government down over the proposal, which has to be approved in parliament. That approval cannot be taken for granted (Print Edition, 2012)."

http://www.economist.com/node/21549997

I find this topic significant because I feel that by agreeing to this compromise with America, Taiwan is finally trying to stand on its own to feet. Although China is not agreeing to the arguments that America portrays, Taiwan is doing their best to find a compromise. Showing that they have the ability to make their own decisions and find their voice.

My concerns toward this action would be is the president agreeing to this only to rebel from China? While its understanding Ma doesn't want to continue to rely on China, he truly needs to think about how his people will react as well as what would be beneficial for them.

While the agreement may be beneficial for both Taiwan and America, will China be offended since they originally refused this agreement? How will they act out?