Taiwan opposition leery of China trade accord

Japan Times ^ | 10/20/2013 | Frank Ching

[TexGrill]

HONG KONG – The Taiwan-Mainland China services trade agreement, signed in June, is still not in effect after having been blocked by Taiwan’s opposition Democratic Progressive Party, which is insisting on an article-by-article inspection of the accord by the Legislative Yuan, or parliament.

Since President Ma Ying-jeou came into office in 2008, 19 cross-strait agreements have been signed, resulting in direct sea and air transport links, more mainland tourists visiting Taiwan and an explosion in trade, which grew 46.5 percent in the first quarter of this year to reach $51.44 billion, according to China’s General Administration of Customs.

The most significant agreement of all, the Economic Cooperation Framework Agreement (ECFA), was signed in 2010, but as it name implies, it is a framework and needs fleshing out with specific agreements on such things as investment protection, services trade, commodity trade, dispute resolution and avoidance of double taxation. But the momentum has stalled.

Opponents of the pact charge that it would damage Taiwanese industries and result in loss of jobs to mainlanders.

The Ma administration is trying to drum up backing from industry groups by highlighting the pact’s positive impact on such sectors as finance, telecoms, entertainment, health, tourism and information technology.

This is something the government should have done earlier to ensure passage in the legislature.

[TexGrill]

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