A Foreign Affairs Ministry spokesman said last Saturday that free trade discussions in 2001 were stopped after the government of outgoing President Chen Shui-bian politicised the issue by trying to go beyond the World Trade Organisation (WTO) framework.

Taiwan's president-elect, Mr Ma Ying-jeou, due to be inaugurated on May 20, said after his recent landslide election victory that he wanted to restart talks for a free trade agreement (FTA) with Singapore.

Singapore was also watching to see what progress will be made with a proposal by Mr Ma for an FTA with China, the spokesman said.

'If Taiwan and the mainland are able to make progress on an FTA and cross-strait relations improve, there will be many possibilities for enhanced economic cooperation between Singapore and Taiwan, provided that economic matters are not politicised,' he said.

Singapore's Trade and Industry Ministry said last Wednesday that Taiwan had not made official approaches yet to the Republic on the issue.

Under the WTO framework, FTAs with customs territories such as Taiwan are allowed.

Previous trade talks broke off after Mr Chen's government said it would not negotiate under any name except Taiwan or the island's own official title, Republic of China.

Taiwan lost its United Nations seat to China in 1971 and is recognised diplomatically now by only 23 countries, mainly small and developing nations in Africa, Latin America and the Asia-Pacific region.

China still claims sovereignty over the self-ruled island, which split from the mainland in 1949, and opposes moves that would indicate its independence.

Singapore supports FTAs, having signed pacts with several countries including the United States, Japan, Australia, New Zealand, Jordan and India.

AGENCE FRANCE-PRESSE