The EU Model for a Taiwan-China Free Trade Agreement

Abstract

The EU is the most successful integration story in the post-Second World War period and its success is evidenced by deepening and widening trends. The success of the EU integration provides a stimulus and encouragement for regional economic cooperation through peaceful processes. Although the EU model is unique, it could still provide many lessons for other RTAs. One key lesson from the EU’s experience for the crossstrait is that intensifying functional integration might play an important role in enhancing and consolidating regional cooperation and economic convergence. In particular, the EU’s objectives for European peace, security and prosperity have a special meaning for Taiwan-China economic relations. Taiwan and China could learn from the lessons offered by the EU model to change political confrontation or even to pursue economic cooperation. From the functional and pragmatic approaches of the EU model, the FTA will provide an opportunity for mutual benefit in cross-strait relations. Through the FTA, will Taiwan and China gradually integrate into one economic community or even one Chinese Union? The EU experience suggests that European integration has always been influenced by the political will of its Member States. The process towards a cross-strait FTA therefore requires a great political will and a commitment to peace and common interest from both Taiwan and China. This process will be a politically difficult venture for both sides. The success of a cross-strait FTA however, will facilitate further economic integration and could create an era of peaceful relations between Taiwan and China in the 21st Century.