Stephen Young, director of the American Institute in Taiwan speaks at to members of the American Chamber of Commerce in Taipei in November 2006. [Agencies]

The United States urged on Tuesday that Taiwan should expand its economic relationship with the mainland, as it "is critical if the island is to become a regional and global centre."

Stephen Young, director of the American Institute in Taiwan (AIT), hailed recent progress made in cross-Strait links during an address to the American Chamber of Commerce (Amcham) in Taipei.

"Amcham members have benefited from measures that increased the number of mainland employees that can travel to Taiwan for business meetings," Young said, referring to charter flights at four major holidays.

"However, more needs to be done ... We look forward to progress soon on expanding cross-Strait charter flights and further opening of Taiwan to tourists from the mainland," he added.

Direct transportation, commerce and postal services between Taiwan and Chinese mainland, known as "three links" -- have been cut since 1949 at the end of a civil war. Cargo and passenger services are made through third parties, mainly Hong Kong.

Calls for the resumption of direct links have been mounting given ever closer economic ties.

Despite political tensions, mainland has been Taiwan's largest trading partner since late 2002 and the island's businessmen have been major investors on the mainland.

Cross-Straits trade in 2006 rose to US$88.12 billion, up 15.4 percent, according to official figures from Taiwan.

The figure accounted for 20.7 percent of Taiwan's total trade in 2006, compared with 20 percent in 2005.

Last year, Taiwan registered a trade surplus with mainland of US$38.54 billion, up 6.6 percent.