Chen says yes to FTA, no to CEPA

President Chen Shui-bian (陳水扁) yesterday rejected the idea of signing a Closer Economic Partnership Arrangement (CEPA) with China, saying it would be "unacceptable" to sign such an agreement as it would downgrade the nation's status to that of Hong Kong and Macau.

"If China signs a CEPA with Taiwan, it would undoubtedly demean Taiwan and turn it into a special administrative region, turn it into a second Hong Kong or a second Macau. This is something we absolutely cannot accept," Chen said.

His comments came the same day as Chinese Nationalist Party (KMT) Chairman Lien Chan (連戰) met with Chinese President Hu Jintao (胡錦濤) in Beijing. It had been widely reported that Hu was ready to tell Lien that China was willing to sign a CEPA with Taiwan.

At a Beijing news conference yesterday afternoon following a two-hour meeting between Lien and Hu, KMT spokesman Chang Jung-kung (張榮恭) said the two men had agreed to discuss establishing a common market.

Although Chang did not elaborate, observers said a common market could mean a CEPA.

The CEPAs China has signed with Hong Kong and Macau allow Beijing to grant privileged treatment to the two Special Administrative Regions (SARs). Under the CEPAs, which took effect on Jan. 1 last year, more than 100 categories of products are allowed to enter China duty-free.

Since both Taiwan and China are WTO members, Chen said they should sign a free-trade agreement (FTA) and use the WTO as a platform to conduct bilateral trade and economic exchanges.

"Under the WTO's framework, if there's anything that should be signed between China and Taiwan, it should be an FTA and not a CEPA," he told a delegation of pro-Taiwan Diet members from Japan's Democratic Party.

"We will be thankful enough if China does not oppose other countries signing FTAs with Taiwan. Let's not play games about `signing a CEPA,'" Chen said.

He said that Taiwan looked forward to signing an FTA with Japan. He also expressed condolences for the deadly train crash last Monday and thanked the Japanese government for its concern over China's "Anti-Secession" Law.

While Chen was occupied meeting foreign visitors yesterday morning and afternoon, senior Presidential Office officials kept a close watch on TV coverage of Lien's meeting with Hu.

A meeting of high-ranking Cabinet and Democratic Progressive Party caucus officials was convened last night by Presidential Office Secretary-General Yu Shyi-kun at the Presidential Office.

At press time last night the Presidential Office had decided not to issue any official comment on Lien's remarks in Beijing.