Taiwan set to sign ECFA with mainland China

A preparatory meeting for the fifth round of talks between Taiwan’s Straits Exchange Foundation (SEF) and mainland China’s Association for Relations Across the Taiwan Strait (ARATS) was held on June 24 in Taipei. Led by SEF Vice Chairman Kao Koong-lian and his ARATS counterpart Zheng Lizhong, the two sides finalized the ‘early harvest’ list under the proposed economic cooperation framework agreement (ECFA), and agreed on the texts of the ECFA and of another pact on intellectual property rights protection. The two sides consented to ink these agreements at the fifth round of SEF-ARATS talks on June 29 in the mainland city of Chongqing.

According to the SEF, a total of 539 goods and services proposed by Taiwan have been included in the early harvest list for immediate tariff or market concessions. These consist of petrochemical products (including petrochemical and plastic materials), textiles, transportation tools (automobile components), machinery (machine tools) and other products. Also, Taiwan negotiators strived for the inclusion of 18 agricultural and fishery products for zero-tariff treatment when exported to the mainland, benefiting many farmers in central and southern Taiwan. Meanwhile, Taiwan has agreed to include 267 items proposed by the mainland.

In addition, agricultural products and laborers from the mainland will not be permitted into Taiwan. As for the few items that did not make the early harvest list, such as complete automobiles and some petrochemical products, Taiwan will continue to negotiate for the inclusion of these items as a priority.

According to Executive Yuan, the signing of the ECFA will be a critical step toward upgrading national competitiveness and can open more business opportunities for local industries. It will not only enhance Taiwan’s competitiveness internationally and lure foreign investors, but also keep Taiwan in step with globalization and regional economic development trends.

Studies by the Chung-hua Institution for Economic Research indicate that the signing of the ECFA will help Taiwan’s economy grow by 1.65 to 1.72 percentage points and create 257,000 to 263,000 job opportunities. Other benefits for Taiwan include earlier entry into the mainland market over competitors, attracting foreign investment, transformation of Taiwan’s economic structure, and turning the island into a gateway and preferred business partner for the Chinese market. In addition, mainland-based Taiwanese companies are expected to purchase more products from home and become more competitive. All these changes will help Taiwan transform into a regional business operations center.

After the SEF and ARATS sign the ECFA, the agreement will be sent to the Executive Yuan for approval and to the Legislative Yuan for review before it can be implemented. The Legislature will convene a special session in July to review the pact.

Many renowned economists also hold the view that the ECFA will bring tremendous benefits for Taiwan’s economic development. Economics Nobel laureate Oliver Williamson pointed out that the ECFA would benefit both Taiwan and mainland China by promoting mutual prosperity and development. Nevertheless, he also emphasized the importance of complementary and self-protective measures. Business strategist Kenichi Ohmae also described the cross-strait economic pact as “a carefully crafted vitamin for Taiwan.” Combined with a 17-percent business income tax rate and 370 direct cross-strait flights every week, Ohmae said that Taiwan could well become a business operations hub for the Greater China area.

Press Release, Government Information Office, Republic of China (Taiwan), 29.06.2010

Die Presseabteilung der Taipeh Vertretung mit Sitz in Berlin bietet folgende Dienstleistungen an: Erläuterung der Politik und der Entwicklung der Republik China (Taiwan), Verbreitung von Stellungnahmen und Pressemitteilungen von taiwanischer Seite sowie Beantwortung von Fragen über das Land;
Angebot von Informationsmaterial über Taiwan in deutscher, englischer, und chinesischer Sprache (Broschüren, Filme, Videos, DVDs, Diafilme, CDs);
Anlaufstelle für deutsche Medienvertreter, Angebot von Informationsreisen nach Taiwan für deutsche Journalisten;
Organisation von Veranstaltungen mit dem Ziel, Kontakte zwischen Deutschland und Taiwan zu vertiefen (Vorträge, Seminare, Ausstellungen, Filmfestivals etc.);
Sonstige Öffentlichkeitsarbeit

Presseabteilung Taipeh Vertretung
Markgrafenstr. 35
10117 Berlin

This release was published on openPR.