Globalization and Regionalization – Taiwan's Perspective

If Taiwan becomes a member of GATT, she can pursue the multilateral free trade agreement provided by the GATT framework. Nonetheless, regionalism is rising. Taiwan may be able to benefit from the great potential of the single European market. However, this prospect is diluted by the EC's concentration on intraregional trade and its frequent use of protectionist measures. The development of NAFTA will not have a substantial diversion effect on Taiwan, though the situation may vary from industry to industry. A Pacific free trade area should be an objective for countries in this region. However, a flexible strategy should be adopted in order to reach that goal. This is especially true for Taiwan.