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Ma says China makes it hard to sign trade deals

President Ma Ying-jeou (馬英九) yesterday acknowledged Beijing’s interference in Taipei’s effort to sign free-trade agreements with other countries, but emphasized it was necessary to sign a trade pact with China as soon as possible, adding that the agreement would steer clear of Taiwan’s statehood.

Ma said his administration intended to negotiate an economic cooperation framework agreement (ECFA) with Beijing to prevent Taiwan from being marginalized in the economic integration of the East Asian region.

He made the remarks when meeting Hayashi Yasuo of the Japan External Trade Organization at the Presidential Office yesterday morning.

Ma said China has made it difficult for Taiwan to sign trade pacts with other countries.

TRADING PARTNERS

Taking Japan as an example, Ma said although Tokyo was Taiwan’s second-largest trading partner, while Taiwan is Japan’s fourth-largest trading partner, Taipei and Tokyo have not had the opportunity to negotiate on a free-trade agreement.

The president said the ECFA would take time to complete, but could be modeled on the deal signed between ASEAN and China, in which an “early harvest” provision was included to ensure the interests of vulnerable industries.

“We need to negotiate with China on the name, content and form before we finalize it,” he said.

Ma said it was a matter of urgency to sign the ECFA with Beijing after the 10-member ASEAN signed a similar deal with Beijing in 2002.

Once the agreement takes effect next year, Ma said, it will deliver a significant blow to local petrochemical, auto parts, machinery and textile industries, which will face levies of 10 percent to 15 percent, while ASEAN members will enjoy zero tariffs.

INVESTMENT

“If we don’t do it now, those industries will suffer and some might leave Taiwan and invest somewhere else, such as in ASEAN countries or China, further worsening the economy,” Ma said.

“An economic institution has estimated that about 100,000 people would lose their jobs,” the president said.

While the opposition has said that the planned agreement would jeopardize Taiwan’s sovereignty, Ma said 50 percent to 60 percent of the public were in favor of the pact thanks to the administration’s aggressive promotion effort.

“Signing an ECFA with Beijing will not only normalize cross-strait trade, but also create an opportunity to engage in similar negotiations with other countries,” he said.

“We will not negotiate on Taiwan’s future in the ECFA, nor will it touch upon unification or independence,” Ma added.

Taiwan is an export-driven economy and exports make up 64 percent of the country’s GDP, Ma said.

Since the country gained accession to the WTO in 2002, Ma said progress on multilateral trade negotiations has been limited, compelling many member countries to engage in the signing of free-trade agreements.
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