FTA Survival Game: American Beef Is Just the Beginning

According to Taiwan’s China Post, the Codex Alimentarius Commission has voted to allow 10 parts per billion (ppb) of ractopamine residue in beef and pork, which settled the current dispute about American beef. The U.S. has indicated that the Trade and Investment Framework Agreement cannot be put forward unless Taiwan lifts its import bans on American beef. The American beef issue has strained the U.S.-Taiwanese trade relationship for many years. If this issue could be settled and the Trade and Investment Framework Agreement upheld, Taiwan might not necessarily get the desired results. However, if there is no Trade and Investment Framework Agreement, no effort can even be made.

The Codex Alimentarius Commission that voted through the new standard of ractopamine residue was obviously dominated by the United States. That powerful countries make international economic and trade policies is a principle that has never ever changed. Despite the World Trade Organization consisting of more than 160 member countries, powerful countries have always had a strong say over major issues. It has become customary for powerful countries to direct the development of any topic.

There is no statistical evidence that suggests whether ractopamine, a livestock feed additive used in the U.S., is harmful to the human body or not. A Taiwanese expert who serves in the U.S. Department of Agriculture told us that Taiwan is too “emotional” when talking about the issue of American beef.

This anonymous expert said food security involves many complex factors that must be based on scientific evidence. Taiwan believes that American beef is problematic but cannot provide any statistical evidence. The whole process of discussion in Taiwan has blurred the real focus and become emotional.

He said that from the perspective of safeguarding citizens’ health, questioning American beef’s ractopamine residue is understandable. But according to international trade principles, without providing scientific evidence that shows the harmfulness of ractopamine residue, Taiwan’s import control on American beef can only give the United States an excuse in other trade areas.

Under globalization, Taiwan cannot stand out by itself. Facing strong pressure from the U.S., Taiwan’s government can still make efforts through marketing, letting consumers themselves decide whether to buy American beef or not. Such practices have been employed by many Asian countries, such as Japan, where Taiwan can take note of Japan’s experience.

After the issue of American beef is solved, the Trade and Investment Framework Agreement, which has been interrupted for five years, is expected to resume. But still, it is doubtful that Taiwan would ever get its desired results, even if the Trade and Investment Framework Agreement is back on the agenda. However, the point at issue is that if the Trade and Investment Framework Agreement does not take place, then Taiwan will not even have the chance to make an effort.

South Korea and the European Union have subsequently signed a Free Trade Agreement, which is a result of their determination to open their markets. South Korea’s government also received pressure from the U.S. on American beef. But nowadays, South Korea is overcoming all the difficulties along the way and starting the negotiation of a Free Trade Agreement with mainland China. Also in recent years, South Korea has actively associated with other Asia-Pacific countries and participated in the greater Chinese diplomatic circle. Compared to the country trapped in the predicament of the Asian financial crisis, South Korea has become even stronger.

Relatively speaking, Taiwan cannot even get over the issue of importing American beef, let alone the pressure on opening the agricultural market when signing up for the Free Trade Agreement or joining the Trans-Pacific Partnership in the future. When the moment comes, rice and other controversial topics will be much trickier.

Unless Taiwan wants to exit the international market, assuring its self-sufficiency, opening the market will be the only way to go. The issue of American beef is just the beginning of the test. If Taiwan wants to join the survival game of regional integration besides negotiating with other nations, the more important question to ask is whether it has prepared itself well.