Whether a memorandum of understanding (MOU) on financial supervision with China will be signed in Taipei or Beijing has become an issue, but the signing would not be delayed until next year, the Financial Supervisory Commission (FSC) and the Mainland Affairs Council (MAC) said yesterday.
“Under normal circumstances, it [signing an MOU] wouldn’t be delayed until next year,” FSC Chairman Sean Chen (陳冲) told a briefing of the legislature’s Financial Committee yesterday.
His comment contradicted remarks by Vice Premier Eric Chu (朱立倫), who said last Friday that a breakthrough in negotiations on the MOU would come “in the next two days.”
“The critical groundwork on the MOU’s financial cooperation contents has been sorted out with Beijing, and we are now leaving smaller issues such as the exact place and date for both parties to sign the agreement to be confirmed,” MAC Deputy Minister Kao Charng (高長) said.
“Cross-strait parties are still in discussion on the date and venue [for signing the MOU]. When people pay attention to where the venue for signing [the MOU] will be, it becomes an issue,” Kao said. “The details will be finalized soon.”
The MAC, along with the National Security Council and the FSC, has played a part in pushing for the signing of an MOU with China.
Chen said the MOU was critical because financial demand has shifted to China, but financial suppliers are restricted to offering services only in Taiwan.
The MOU will allow domestic financial institutions to expand loan and insurance services across the Strait, especially to serve the vast number of Taiwanese businesspeople who set up companies in China.
Chen said that compared with the MOU, a proposed economic cooperation framework agreement (ECFA) with China was at a higher level, but without signing an MOU, it would be meaningless to proceed with an ECFA.
Taiwanese exports to China would become more competitive after signing an ECFA, he said.
Based on the proposed early harvest list, which includes items from the petrochemical, textile and machinery industries, the government would see a loss of customs duties of NT$3.88 billion (US$116 million) after the pact is implemented, while China would lose NT$41.97 billion, a statement from the Ministry of Finance said.
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