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Ma pushes for ECFA with mainland

Updated: 2009-11-20 07:35

(HK Edition)

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TAIPEI: Taiwan leader Ma Ying-jeou reiterated yesterday that Taiwan seeks to sign an economic cooperation framework agreement (ECFA) with the mainland to protect its future economic development, not simply to bolster ties with the mainland.

Ma said Taiwan should strive to avoid being marginalized amid increasing integration of economic entities in the Asia-Pacific region.

The most crucial way to do so is to increase engagement with other regional entities and develop closer economic and trade ties, particularly by signing free trade agreements (FTAs), Ma said at his office during a meeting with representatives of industrial associations from around Taiwan.

It is important that an economy signs FTAs with its major trade partners, Ma said, adding that Taiwan's major trade partners are the mainland, Japan, the United States, the Association of Southeast Asian Nations (ASEAN), the European Union, New Zealand and Australia, in that order.

This is the reason why Taiwan wants to sign an ECFA with the mainland, he said.

Two-way trade between Taiwan and the mainland totaled over $130 billion in 2007 and exceeded $132 billion in 2008 despite a global economic meltdown, according to the economic affairs authorities.

Ma reiterated that with two-way trade amounting to a volume so huge, it would be tremendously harmful to Taiwan should there be lack of a wholesome framework under which bilateral commerce and investment can proceed fairly and efficiently.

He stressed that Taiwan will clinch an ECFA with the mainland only when it is found necessary, the people support the idea and it is under the supervision of the Legislature.

He promised the government will keep the public informed of the development in ECFA-related undertakings and added that the government is pushing for the signing of the ECFA only after it has weighed the pros and cons and found that signing such an agreement would work to Taiwan's advantage rather than disadvantage.

He said he is uncertain whether other parties would sign FTAs with Taiwan after it clinched an ECFA with the mainland, but one thing positive in this respect is that the obstacles Taiwan faces in its efforts to sign FTAs with other economies will be lessened once it signs the ECFA with the mainland.

He also pointed out that some domestic industries, particularly footwear and towel manufacturing sectors, will be unavoidably affected by Taiwan's signing of an ECFA with the mainland.

"We will put this under our considerations when seeking the ECFA and an 'early harvest list' will serve as a bumper to reduce adverse impacts on the domestic industries," he said.

The "early harvest list" refers to items to be subject to tariff concessions or full market opening as soon as the ECFA pact is signed.

Taiwan and the mainland have already held four rounds of informal talks on the ECFA issue, all of which focused on principles related to an early harvest list under the agreement.

China Daily/CNA

(HK Edition 11/20/2009 page2)

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