ECFA to help secure FTAs, bolster competitiveness

ECFA to help secure FTAs, bolster competitiveness

 

President Ma Ying-jeou yesterday said his administration will not let cross-strait development dictate the course of the country's foreign ties although Taiwan is seeking to further improve its relations with China. 

“This government will not indulge in wishful thinking by having the development of cross-strait ties determine our external relations,” said Ma in his New Year address to the nation.
“We will adopt a principle of seeking a proper balance between the two, so that cross-strait ties and foreign relations are mutually complementary and progress together, with neither subordinated to the other.” 

“If Taiwan can get more international space, it will make us more willing and give us the courage to continue strengthening the cross-strait relationship.”
He stressed that Taiwan will continue seeking better ties with China, but it is not yet time to make a decision on the unification-independence issue.
He noted that as the two sides have been separately governed for 60 years, they have developed different political, economic and social systems.

“As our ways of life and experiences are vastly different, we require a certain period of time in which to connect and gain a better understanding of each other,” Ma told the nation.

“At present, making political choices hastily, whether they be for immediate unification or immediate independence, would cause serious confrontation and tumult. No one would be the better-off, and neighboring nations would all be affected.”
The opposition camp claims that Ma has been steering Taiwan towards unification with China.

His attempt to sign an economic pact with Beijing has also sparked fears and criticisms that the pact will let China hijack Taiwan's economy.

But Ma maintained that the ECFA is being sought in line with adjustments to Taiwan's global strategy aimed at increasing its competitiveness.

He noted that starting this year, the free trade zone involving the Association of Southeast Asian Nations (ASEAN) and mainland China has come into effect, and goods and services from the 10 ASEAN member states can enter China tariff-free.

“However, Taiwan's competing exports to the mainland are still subject to high import taxes, thus placing us at a disadvantage. We cannot simply sit by and watch this happen.



 “This is why the government is pushing to sign an economic cooperation framework agreement (ECFA) with mainland China.” 

He noted that the trend towards economic integration in Asia is clearly evident, and proceeding at a rapid pace.

He said regional trade accounts for over 50 percent of Asian nations' total trade, and now outweighs trade with markets outside the region.

There were only three free trade agreements (FTA) between nations in the region in 2000, but the number grew to 58 in 2009, he said. 


  But North Korea and Taiwan are the only nations that have not participated in the integration process, he added.
The business circle in Taiwan responded positively to Ma's message, noting that expanded trade with China is only part of Taiwan's global deployment.
Tsai Lien-sheng, secretary general of the Chinese National Federation of Industries, said Taiwan must not be overly dependent on cross-strait ties, which are only part of Taiwan's “external relations.”
Lin Ping-pin, an official from an association representing Taiwan's small- to medium-size businesses, said Ma's trade policy has slanted towards China.

He said external trade must not be overly concentrated on one market, saying it is important to have balanced and diversified development.

Chang Pen-tsao, chairman of the General Chamber of Commerce, said corporate leaders exchanged views with the president and vice president Friday morning, and they all agreed that the worst period for the local economy had passed.

The economy is expected to see a gradual recovery in the first half of this year and show very strong growth in the second half, Chang said, adding that the economy will gradually return to the level it had attained before the credit tsunami.

Lai Cheng-i,chairman of the Council for Industrial and Commercial Development, said that closer cross-strait economic ties and the global economic recovery may push up the Taiex, the Taiwan stock market's key barometer, to over the 10,000 level this year.