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Viewing cable 09AITTAIPEI1532, MEDIA REACTION: U.S. BEEF IMPORTS

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Reference ID Created Released Classification Origin
09AITTAIPEI1532 2009-12-30 09:00 2011-08-23 00:00 UNCLASSIFIED American Institute Taiwan, Taipei
VZCZCXYZ0008
RR RUEHWEB

DE RUEHIN #1532/01 3640900
ZNR UUUUU ZZH
R 300900Z DEC 09
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 3019
INFO RUEHBJ/AMEMBASSY BEIJING 9588
RUEHHK/AMCONSUL HONG KONG 0975
UNCLAS AIT TAIPEI 001532 
 
SIPDIS 
 
DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/P, EAP/PD - THOMAS HAMM 
DEPARTMENT PASS AIT/WASHINGTON 
 
E.O. 12958: N/A 
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: U.S. BEEF IMPORTS 
 
Summary:  Taiwan's major Chinese-language dailies focused December 
30 news coverage on the ruling KMT and opposition DPP caucuses' 
consensus on amending the Act Governing the Food Sanitation which 
bans the import of "risky" U.S. beef products; on the scandal of 
three local doctors colluding with patients in defrauding US$2.5 
million from insurance companies; and on China and ASEAN's free 
trade agreement, which will be launched on January 1, 2010.  Among 
editorials and commentaries, an op-ed in the pro-unification "United 
Daily News" said the opposition forces in Taiwan regarding the 
import of U.S. beef products should base their opposition on 
long-term strategic objectives, rather than deviating from 
international political and economic reality.   An op-ed in the 
KMT-leaning "China Times" suggested that the United States and 
Taiwan should resolve the beef controversy in Taiwan under the 
framework of the U.S.-Taiwan Trade and Investment Framework 
Agreement (TIFA) negotiations to reach a win-win outcome.  End 
summary. 
 
A) "Opposing the U.S. Beef; Can [Taiwan] Oppose the U.S.'s 
Position?" 
 
Tang Hsin-wei, an assistant professor of the Department of Political 
Science at Fo Guang University, opined in the pro-unification 
"United Daily News" [circulation: 400,000] (12/30): 
 
"... Taiwan, in order to expedite its economic growth, must expand 
international trade.  The United States, the biggest economic entity 
in the world, with a 2006 GDP that was twenty percent of the entire 
world's, is a major market that every country tries hard to enter. 
In order to strengthen Taiwan's export competitiveness, [Taiwan] 
must negotiate with Washington.  Opening [Taiwan's market] to U.S. 
beef should be regarded as a link to [Taiwan's] overall strategy. 
To Taiwan, the U.S. market is indispensable.  However, to the United 
States, there are a lot of trading partners which can replace 
Taiwan.  Under the circumstance of a critical imbalance, if [Taiwan] 
demands that Washington fully accommodate Taiwan, it is obvious that 
[Taiwan] is deviating from international political and economic 
reality. ..." 
 
B) "[Using] TIFA to Resolve the Beef Controversy" 
 
Tsai Horng-ming, an associate professor at the Graduate Institute of 
International Affairs and Global Strategy at the National Taiwan 
Normal University and also a former advisor to the National Security 
Council, opined in the KMT-leaning "China Times" [circulation: 
120,000] (12/30): 
 
"The Legislative Yuan is amending the 'Act Governing Food 
Sanitation,' banning the import of highly risky parts of ground beef 
and beef offal and having an impact on the progress of the Trade and 
Investment Framework Agreement (TIFA) talks between Taiwan and the 
United States.  It remains to be seen whether the negotiations at 
the deputy ministers' level will resume.  Taiwan and the United 
States should consider whether to make the U.S. beef controversy 
become a topic negotiated under the TIFA in order to find a strategy 
which yields a win-win scenario. ... 
 
"In fact, both Taiwan and the United States are members of the World 
Trade Organization (WTO) so they should resolve the beef controversy 
according to WTO regulations.  If ground beef and beef offal were 
'denied entry to Taiwan' based on the Legislative Yuan's amendments 
to the 'Act Governing Food Sanitation,' the United States beef 
industry as a result would report this to the Office of the United 
States Trade Representative (USTR) regarding 'trade obstacles' 
caused by Taiwan to the export of U.S. beef into Taiwan, Taiwan and 
the United States must conduct bilateral negotiations and ask the 
WTO Secretary-General to mediate the case, and establish a dispute 
settlement panel to review the case as well as an appeal procedure 
so as to resolve the trade dispute.  If the WTO dispute settlement 
panel rules that Taiwan has violated the WTO Agreement on the 
Application of Sanitary and Phytosanitary Measures, then the United 
States can conduct trade retaliation against Taiwan. 
 
"Regarding the opening of bilateral negotiations, TIFA must be used 
effectively.  As the American Chamber of Commerce in Taipei (AmCham) 
mentioned in its '2009 Taiwan White Paper,' [the trade volume of] 
beef is only a small part of the total trade volume between the 
United States and Taiwan; however, this single issue has obstructed 
many other issues about which American enterprises are concerned, 
and it [AmCham] hopes both [Taiwan and the United States] find a 
solution.  In particular, with improved cross-Strait relations, 
[Taiwan and China] are going to sign a 'cross-Strait Economic 
Cooperation Framework Agreement (ECFA).'  The signing of the ECFA 
will help industries on both sides of the Taiwan Strait, including 
information and electronics, retail, telecommunication, finance, 
energy, and environmental protection to cooperate, the circumstances 
of which will definitely have an impact on American businesses' 
interests in the Taiwan market.  This will be the price that the 
United States will have to pay by delaying the U.S.-Taiwan TIFA 
talks because of Taiwan's policy of 'denying [risky U.S. beef parts] 
from entering Taiwan.'  This is one aspect that the United States 
must take into consideration. 
 
"Therefore, for both Taiwan and the United States, the best strategy 
is to resume the TIFA talks as originally scheduled at the beginning 
of next year.  In addition to continuously pressing [Taiwan] on 
issues, including rice and the pharmaceutical pricing system under 
the National Health Insurance, and promoting other issues that 
benefit American businesses in Taiwan, the [United States] should 
further 'review' Taiwan's [policy] of importing U.S. beef products 
and administrative measures under the framework of TIFA, and further 
negotiate [with Taiwan] regarding improvements [to the 
circumstances] and 'strategies to resolve the issue cooperatively.' 
..." 
 
MADISON