The Straits Exchange Foundation and China’s Association for Relations Across the Taiwan Strait should launch talks over an economic cooperation framework agreement (ECFA) as soon as possible to create a “cross-strait win-win” situation, a statement released by the Chung-Hua Institution for Economic Research (CIER) said yesterday.
CIER and China’s Chinese Academy of International Trade and Economic Cooperation worked together last November to study the effects of the planned trade agreement on the two economies.
CIER said its study showed that although the economic pact may have both positive and negative impacts on different industries, overall, it would boost Taiwan’s GDP and lift the macroeconomy.
The Chinese academy’s research also arrived at the same findings, that “the development of Chinese industries may benefit or be adversely impacted by the agreement depending on their competitiveness,” the CIER statement said.
Since businesses on both sides of the Strait may have to undergo internal adjustments in the face of increased competition from imports in the process of market liberalization, CIER said the government should adopt a gradual or flexible method in deregulating the market.
Aside from the ECFA, the Taiwanese and Chinese research institutions recommended that the two sides establish timely trade regulations on the origin of products, the definition of service suppliers, trade remedy terms and a dispute settlement mechanism, the statement said.