Taiwan needs regional integration

Taiwan's demonstrators occupied its legislature on March 18 to 24 to resist a new trade bill with the mainland. And yet, Taiwan needs regional economic integration to sustain its economy.

In Taiwan, the ruling Kuomintang party and its leader, Ma Ying-jeou, support the pact that would lower barriers for Taiwan and the mainland to invest in each other's service sectors.

But as KMT lawmaker Chang Ching-chung announced that the trade agreement should be sent to the legislative floor in its entirety, the opposition Democratic Progressive Party protested the decision and student groups stormed Taiwan's legislative chambers. As students refused to leave, they were removed forcefully from the building.

The occupation was not spontaneous. Reportedly, it was "months in the making".

In the West, the narrative has been framed as a "quest for democracy." But if anti-trade groups occupied the US Congress or the White House with promises of escalation, it is fair to assume that the reaction would be far more forceful.

Could Taiwan thrive without these trade deals? Let's review the facts.

Until 2008, cross-Strait relations were characterized by six decades of limited contact and instability, and years of rising tensions. In 2008 the Kuomintang won the elections in Taiwan and gained majority in the Taiwan's legislature. Afterwards, "three links" - transportation, commerce and communications - were restored between the two sides.

In the summer of 2010, Taiwan and the mainland agreed on the Economic Cooperation Framework Agreement (EFCA). The preferential trade agreement reduced tariffs and commercial barriers between the two sides and boosted bilateral trade to $197 billion last year.

From the standpoint of bilateral trade, the Cross-Strait Service Trade Agreement (CSSTA) is a vital follow-up to the ECFA. It would open Taiwan's industries to mainland investment, while the mainland would open industries to Taiwan's investment. While the CSSTA is just one of many proposed trade agreements to the mainland, it is a critical lifeline to Taiwan.

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