UK Relations with Taiwan

Jim Shannon Excerpts

Tuesday 24th October 2017 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to be called by you, Mr Paisley, to speak in Westminster Hall. I also congratulate the hon. Member for Harrow East (Bob Blackman) on making such a good case in this debate, which he secured.

The statistics about this issue are very important. In 2016, the UK exported some £1.8 billion worth of goods and services to Taiwan, and we imported goods from Taiwan that were worth some £3.5 billion. So we have a trade deficit with Taiwan, but we are very happy to have had such a trade deficit with Taiwan in each of the last 10 years.

UK imports from Taiwan peaked at £4.2 billion in 2012, and in 2015 the UK’s exports to Taiwan represented about 0.4% of all UK exports. In 2015, Taiwan was the UK’s 39th largest export market and the 28th largest source of UK imports. It is clear from those statistics and from the presentation by the hon. Member for Harrow East that there are links with Taiwan and that there is a desire for those links to be enhanced. That was also demonstrated by the work carried out by our esteemed Minister for Trade Policy, who visited the island last September, shortly after the Brexit vote; he secured a flight from Gatwick to Taiwan for the first time in five years. We hope to build upon such links over the next period of time, which would benefit both our countries.

However, as with any issue that involves a politician, things are rarely black and white. It is not so simple just to enhance trade with Taiwan, as we must also continue to respect our other trading partners, which in this case includes China. It is about getting the balance right.

From the outset, I have believed that my experience of hailing from Northern Ireland helps with this situation, as it shows that a border dispute must not signal the death of mutually beneficial trading deals. The Republic of Ireland is essential to our trade, as it is a big importer of our goods, and vice versa. Even if the British mainland makes it abundantly clear that Northern Ireland remains British and continues to do so, that will not stop trade with the Republic of Ireland. That can and should be the approach for dealing with the China-Taiwan issue. We can and must enhance trade links without further alienating the two nations, so it is a case of getting the balance right, as the hon. Member for Harrow East said when he introduced this debate.

Recently, I read an article that highlighted the fact that persecution of people on the grounds of their faith had increased over recent years in the Asia-Pacific region. Indeed, that article was set at the first Asia-Pacific Religious Freedom Forum, which this year was held from 18 to 21 February in Taiwan. That conference, which was hosted by the former Vice-President of Taiwan, Annette Lu, was timed to coincide with the Chinese new year celebrations and to come right after the general elections in Taiwan. It showed the passion in Taiwan for moving away from the Chinese enforcement of religion and for moving towards religious freedom. I believe that we have a duty to support Taiwan in that regard. China is guilty of many human rights and religious persecution issues, and we must acknowledge that. However, the fact that the conference was held in Taiwan sends out a clear message about the ethos of those who are elected in Taiwan. They want true co-operation, to allow people the freedom to believe as they choose, without fear of persecution. ChinaAid’s president, Bob Fu, a former Chinese dissident himself, said that the conference declaration was a road map

“for those who wish for a free world”.

People from 26 countries took part in the forum, from Pakistan, China, Cambodia, Indonesia, Malaysia, Thailand, Myanmar and others. They included representatives of charities and international non-governmental organisations that focus on freedom of religion, such as Open Doors International, which works with minority Christians worldwide. No one nation or organisation can work alone to fight the rising tide of hatred, so there is a need for greater co-operation between those who want a peaceful world. It is not too much to hope for the faith, hope, charity, love, mercy, liberty and peace that can help to preserve those people.

During the conference, Pakistan-born Swedish politician Nasim Malik said that nations across the world had realised that peace and stability were needed for development. Off the back of that peace and stability comes the opportunity for economic development. We have done it with China; we can do it with Taiwan, and we should work towards that. With prosperity and growth we can do that; Malik said that the countries in the Asia-Pacific region should also realise that reality for their economic growth and prosperity.

A similar viewpoint was held by Brian J. Grim, president of the Religious Freedom & Business Foundation, who said that the global economy had become religiously diverse, so protecting religious freedom would strengthen the global economy as well. How true that could be, if we put that ethos clearly at the core of what we do. I believe that those two things can, and must, be intrinsically linked, and that we have a role to play. While strengthening our trading ties, we can and must offer the support for that freedom that will help people to grow an economically viable nation, whatever nationality is attributed to them.

Hailing, as we do, from a nation where many people often confuse the nationalities, it goes straight to my heart when people question whether I am Irish or British. Let me make it clear: I am an Ulster Scot, from Northern Ireland, and I am proud to be part of the United Kingdom of Great Britain and Northern Ireland. I am very proud to put that on record; I am proud to be British. However, I must also say that to see my children with no food on their plates or no job to go would also go straight to my heart. There must be the ability to involve ourselves with economic issues without involving ourselves in nationality ones. That is a fine line, but I believe we possess the ability to walk it.

--- Later in debate ---

[Mark Field]

I appreciate that. It has been set up for quite some time, actually. Climate change has been a major global issue for 30 years, and I guess that Taiwan has had some involvement in international organisations of that ilk. It plays a useful and active role in, for example, the World Trade Organisation and the OECD, and I would like it to have the role that hon. Members referred to in Interpol and the International Civil Aviation Organisation. We meet Taiwanese delegations at the margins of such international meetings, and we will continue to do so. I accept the view of my hon. Friend the Member for Harrow East, and I will do my best to raise that issue. Many of the issues to which hon. Members referred, including aviation safety, international terrorism and climate change, are global and clearly apply as much to the 24 million people of Taiwan as to the other 7 billion inhabitants of the world.

The subject of this debate is the UK’s relations with Taiwan. Taiwan is a thriving economy, which enjoys the same democratic norms and values as the UK, including a free media and a vocal and active civil society. The UK and Taiwan enjoy strong, albeit unofficial, relations, which deliver significant benefits to us all. Taiwan continues to behave as a de facto state, but the UK does not recognise it as an independent state. Therefore, with great respect to all of my hon. Friends who referred to the ambassador, the truth is that the gentleman concerned, who is in the Public Gallery, is the unofficial representative to this country, not an ambassador in any official way. That is obviously a position we maintain, with our policy on China. That is an issue not just for this Government but for successive Governments over many decades. The relationship between us is strong and delivers significant benefits. That collaboration is built upon dynamic commercial, educational and cultural ties, facilitated by the Taipei Representative Office in London and the British Office in Taipei.

Taiwan and the UK are both open to foreign investment. We share a belief—much diminished, I fear, in international affairs today—that free trade and open markets are the very best ways to grow our economies and enhance our prosperity. That means that trade is the cornerstone of the relationship between Taiwan and the UK. Taiwan is the UK’s sixth-largest trading partner in the Asia-Pacific region and our 33rd-largest globally. I suspect we will move up in those rankings rapidly in the years to come. Bilateral trade reached £5.3 billion in 2015. Although business and financial services were our largest export sector, two thirds of the UK’s exports to Taiwan were goods—notably vehicles and state-of-the-art pharmaceuticals. Taiwan is also our fourth-largest export market, as was pointed out, for Scotch whisky, taking in £175 million-worth of it in 2016—they obviously enjoy it. Of course, our trade flows both ways. The UK is Taiwan’s third-largest investment destination in Europe, ahead of France and Germany, and Taiwanese investment in this country totalled some $115 million in 2016.

A number of Members discussed Brexit. As we prepare to leave the EU, the British Government are working closely with all our major partners and investors in the Asia-Pacific region, including Taiwan, to grow those economic links.

[Jim Shannon]

The Minister will be well aware of the importance of the agri-food sector to Northern Ireland. We have been trying to increase our exports of pork products to Taiwan and China, and we have been somewhat successful. Will the Minister indicate what more can be done to help the agri-food sector in Northern Ireland develop those exports even more?

[Mark Field]

As the hon. Gentleman will appreciate, I will have to get back to him on some of the specifics. More broadly, the UK and Taiwan are committed to continuing to take practical steps to enhance trade and investment between us and within the region. As has been mentioned, we have identified that live poultry and Scotch whisky are potential growth areas. We have also made great progress with our application to export pork products, paving the way for a Taiwanese delegation to conclude an inspection of UK facilities just last week. We hope that will lead to markets opening to UK exports very soon.

We want significantly to increase trade between the UK and Taiwan by improving reciprocal market access and helping our companies to do business on a level playing field. There are genuinely great opportunities for UK industries in sectors such as renewable energy, railways and transport infrastructure. As my hon. Friend the Member for Milton Keynes South (Iain Stewart) rightly pointed out, nuclear decommissioning is very important, not just in Taiwan but in the region as a whole.

The digital economy continues to offer opportunities for British companies. Taiwan is already looking to adapt UK standards to regulate its own digital economy, its fintech industry and driverless vehicles. We are keen to engage with the Taiwanese authorities on broad economic reforms to improve the business environment, which I hope will lead to greater returns on investment and increased trade in both directions.