Olivia Mitchell (Dublin South, Fine Gael)
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To ask the Tánaiste and Minister for Foreign Affairs and Trade if it is envisaged that Ireland may soon agree a double taxation agreement with Taiwan in view of the fact that many of our trading partners from both the EU and elsewhere have already done so; and if he will make a statement on the matter. [15421/13]

Olivia Mitchell (Dublin South, Fine Gael)
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To ask the Tánaiste and Minister for Foreign Affairs and Trade if he will respond positively to the invitation from the new EU ambassador to Taiwan to afford occasional space to the Irish ambassador to Tokyo in the EU offices in Taiwan to facilitate Irish attendance at the regular trade meetings held there by countries who have trade and diplomatic missions in the country; and if he will make a statement on the matter. [15422/13]

Lucinda Creighton (Dublin South East, Fine Gael)
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I propose to take Questions Nos. 8 and 9 together and to make a statement.

Ireland, along with all EU partners, adheres to the one China policy and as a result does not have diplomatic relations with Taiwan. This does not, however, preclude the development of economic and trade relations. Ireland, together with our EU partners, sees the benefit of encouraging trade with Taiwan and will continue to explore all appropriate opportunities which arise.

A Taipei representative office, TRO, was established in Dublin in 1988. It has a representative function only in respect of economic and cultural matters.

No political recognition of Taiwan is implied by its presence. The IDA had an office in Taipei, but closed it in 2011. Enterprise Ireland and the IDA currently manage their clients in China, including those in Taiwan, from their offices in Beijing, Shanghai, Hong Kong and Shenzhen.

As regards the EU representative in Taiwan, the EU has no formal diplomatic or formal political relations with Taiwan. The EU does recognise Taiwan as an economic and commercial entity and is represented by the European Economic and Trade Office, EETO, in Taipei, which was established in 2003. Exchanges take place in sectors such as research and technology, information society, education and culture, fisheries, the environment, climate change, intellectual property rights, and standards and norms. I would fully expect Government representatives travelling to Taipei on trade promotion and investment activities to liaise with the EETO and to welcome any assistance which might be offered by that office. However, I would not envisage any arrangement involving our ambassadors to neighbouring countries.

As regards the possibility of concluding a double taxation agreement, DTA, with Taiwan, I understand that this matter is currently being considered by the relevant Departments and agencies. Ireland has a double taxation agreement with the People’s Republic of China, which entered into force in December 2001. Since the conclusion of the DTA with China, a separate agreement was agreed with the Hong Kong Special Administrative Region of the People’s Republic of China, HKSAR, which entered into force in February 2011. However, the situation in Hong Kong is different from that in Taiwan, as Hong Kong has a separate taxation status. Under the "one China, two systems" approach, this status is specifically provided for in the basic law of the HKSAR which was adopted by the National People’s Congress in Beijing in 1997. This was then promulgated by the then President of the People’s Republic of China.

Olivia Mitchell (Dublin South, Fine Gael)
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I am a little disappointed, in respect of Question No. 9, that there is no opportunity to allow our ambassador to avail of the opportunity being afforded to those EU member states that have diplomatic or trade missions in Taiwan. Our relationship with mainland China is precisely the same as those of the other EU countries, so I am unsure why this is felt to be a barrier to having an ambassador in the region attending trade meetings in Taiwan on a monthly basis. I have had representations from individuals and Irish business people living in the area who feel the opportunities available to other EU countries are not available to us.

I welcome the Minister of State's comment that we are open to a DTA agreement with Taiwan. I understand there are sensitivities with regard to our relationship with mainland China and that in the past this might have been a barrier to an agreement. However, the sensitivities between Taiwan and mainland China are not nearly as acute now as they were in the past. We all want some part of the trade with China, but getting any of it is not as easy as people might think. However, the door is open to increased business and trade with Taiwan. Business links between mainland China and Taiwan are increasing exponentially. Therefore, this opportunity offers a possibility for us to open the door into China. It would also benefit both Taiwan and Ireland. I would be very happy to hear progress was being made in terms of a mutual taxation agreement on trade, which would be of benefit to both of us.

Lucinda Creighton (Dublin South East, Fine Gael)
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The sensitivity with regard to neighbouring ambassadors concerns the issue of political recognition. Our policy has been and continues to be that this is something we are not prepared to do.

Even when there has been ministerial engagement with Taiwan from other EU countries, it has been at a very low level. In fact, it is very infrequent. The vast majority of countries have not engaged at that level at all. It is a very sensitive area. We are treading a fine line. Our official position is that we recognise the "one China" policy. We have to differentiate. We are anxious to deepen and strengthen trade relations. When trade representatives visit Taipei, they use the clear EU infrastructure that is there. Obviously, there are always cost considerations and implications with regard to a decision like the double taxation agreement, which is under active consideration. I think that is an important step. I cannot pre-empt the outcome of the process of consideration that is under way with the stakeholders, including Enterprise Ireland, IDA Ireland and the Department of Foreign Affairs and Trade. It is important that it is under active consideration. I do not think anybody doubts the significance, in terms of potential, of the growth of this trade relationship. However, we need to bear in mind all the political sensitivities that exist.

Olivia Mitchell (Dublin South, Fine Gael)
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I welcome our recognition of Taiwan as an economic and commercial entity. I ask the Minister of State to ensure we push the potential of this agreement to its limit.

Lucinda Creighton (Dublin South East, Fine Gael)
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It is fair to say that is the intention.