TAIPEI (TVBS News) — The U.S. House of Representatives passed legislation Monday (June 23) that could significantly boost Taiwan's long-standing efforts to join the International Monetary Fund (IMF), a key global financial institution. The Taiwan Non-Discrimination Act, a bipartisan initiative spearheaded by Representatives Young Kim and Al Green, seeks to support the island's participation in crucial economic oversight mechanisms and technical assistance programs offered by the IMF to its member states.
During floor debate, Representative Kim emphasized that China has consistently worked to exclude Taiwan from international organizations like the IMF, warning that such isolation could lead to economic destabilization through mechanisms like unexpected tariff increases and stock market interference. Proponents of the legislation point to Taiwan's existing membership in other significant economic bodies, including the World Trade Organization (WTO), Asian Development Bank (ADB), and Asia-Pacific Economic Cooperation (APEC), as precedent for its inclusion in the global monetary authority.
The Republic of China (ROC, Taiwan) was among the original members of the IMF but was compelled to withdraw in April 1980 after People's Republic of China (PRC) gained admission to the organization. A January 2020 U.S. Treasury report highlighted Taiwan's substantial economic standing, noting its foreign exchange reserves of US$471.9 billion exceeded those of several major economies including India, South Korea, and Brazil. The legislation strategically cites Kosovo's 2009 entry into the IMF despite lacking United Nations membership, establishing a clear precedent that U.N. recognition is not mandatory for participation in the global financial institution.
The legislation draws additional support from historical legal opinions, citing Joseph Gold, who previously served as director of the IMF's legal department, who maintained that neither full independence nor complete sovereignty should determine eligibility for IMF membership. Despite passing this significant hurdle in the House, the bill now faces consideration in the Senate, where lawmakers must reconcile any differences before sending a unified version to the President's desk for final approval to transform the measure into binding law. ◼