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Official frustrated over delay in financial MOU

Taipei and Beijing should sign a memorandum of understanding (MOU) on cooperation in financial supervision as soon as possible for mutual benefit, a senior Taiwanese financial official said yesterday.

“It comes as a surprise to me that the two sides have had to spend so much time negotiating the pact,” Financial Supervisory Commission (FSC) Vice Chairwoman Lee Jih-chu (李紀珠) told the 7th Annual Global Chinese Business Leaders Forum in Taipei.

Cross-strait negotiations over the MOU covering banking, insurance and securities, which were to have been completed in late June, are still ongoing.

Lee said the MOU, which would mainly outline financial regulatory systems, should be in place before the two sides could reciprocally approve operations by financial institutions.

“We hope the two sides can strike a deal as soon as possible,” Lee said, adding that the more complex market access issues could be addressed when the two sides negotiate a proposed economic cooperation framework agreement (ECFA).

In her view, Lee said, the MOU is mainly a declaration of intent — not a legal document.

“Whether provisions set forth in the MOU can be realized hinges mainly on the sincerity of its signatories rather than the precision of its vocabulary,” Lee said.

Arguing that the MOU does not involve complex market access issues, Lee said she saw no need for the two sides to continue dragging their feet in the negotiations, especially as Taiwan has signed similar memorandums with many other countries.

Speaking at the same conference, Vice Premier Eric Chu (朱立倫) said a breakthrough in cross-strait MOU negotiations will come in the next couple of days, without elaborating.

In his speech, Chu said Taiwan is endeavoring to sign a financial MOU and a comprehensive ECFA with China as part of its efforts to expand its economic reach in this era of globalization.

Chu said ECFA provisions are similar to those set forth in free trade agreements, and Taiwan will try to sign similar pacts with other countries, particularly its major trading partners, to enhance its global presence.
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