Bill to support Taiwan's IMF admission passed by U.S. House committee

Washington, March 6 (CNA) The United States House Financial Services Committee on Wednesday approved a bipartisan bill to support Taiwan's admission into the International Monetary Fund (IMF).

The bill, introduced by Republican House Representative Young Kim and her Democratic counterpart Al Green in February, calls for the U.S. government to support Taiwan's admission into the IMF as a member and participation in the financial institution's regular surveillance activities relating to its conomic and financial policies.

In addition, the bill urges the U.S. government to support IMF employment opportunities for Taiwan nationals and for Taiwan to receive IMF technical assistance and training.

Before the bill passed, Kim stated that the U.S. had long supported Taiwan's inclusion in international organizations and advocated for a mechanism to ensure its voice is heard when full membership is not possible.

"This principle has endured for decades across the Republican and Democratic administrations and has repeatedly been reaffirmed in bills passed by this congress," Kim said.

"My bill is straightforward. It requires the Treasury Department to implement our Taiwan policy at the International Financial Fund or the IMF. As the legislation makes it clear, Taiwan is not required to be a member of the United Nations to gain membership in the IMF," Kim added.

Kim cited Kosovo as an example, saying the country is not a member of the U.N. but has been an IMF member for over a decade.

She said it would be "absurd" for the organization to exclude Taiwan, one of the U.S.' top 10 trade partners and the fifth-largest foreign exchange reserve holder in the world.

"At a time when China has been threatening the work of the IMF through its non-transparent lending abroad and its lack of cooperation with other creditors, we must focus the fund on effective international cooperation," Kim said.

"That means openness toward potential members like Taiwan that can make significant contributions to the IMF's mission," Kim added.

Kim said the push for Taiwan to join the IMF could pave the way for it to join other international financial institutions, like the World Bank, which requires countries to be first members of the IMF.

Kim added that the U.S. Senate Foreign Relations Committee has expressed bipartisan support for Taiwan's membership in the Inter-American Development Bank, which would be possible if Taiwan was an IMF member.

The bill notes that although Taiwan is not an IMF member, it has membership in the World Trade Organization, the Asian Development Bank and the Asia-Pacific Economic Cooperation trade bloc.

The bill cited the Taiwan Relations Act as saying "Nothing in this Act may be construed as a basis for supporting the exclusion or expulsion of Taiwan from continued membership in any international financial institution or any other international organization."

The Republic of China (Taiwan) retained its IMF membership nine years after it lost its seat in the U.N. to the People's Republic of China (PRC).

Even after the PRC replaced the ROC as an IMF member in 1980, the 16 ROC nationals employed by the IMF were allowed to continue working there.

The IMF, which has 191 members, promotes global financial stability and economic growth by providing financial assistance, policy advice and economic surveillance to members.