An economic cooperation framework agreement (ECFA) the government seeks to sign with Beijing would have a greater impact on Taiwan than on China because of the size difference between the two countries, Vice President Vincent Siew (蕭萬長) said yesterday.
China is big and 50 percent of its businesses are state-owned, while Taiwan is small and the great majority of its businesses are privately owned small and medium enterprises, Siew said.
“China would [therefore] face a smaller impact than Taiwan after an ECFA is signed,” he said, adding that it was international practice for countries to negotiate by taking into account differences in the size of their territory and economy.
Siew made the remarks during a talk on Taiwan’s economic strategy at the invitation of I Shou University in Kaohsiung County yesterday.
Siew said Taiwan’s economic development has fallen from the top spot to the last among Asia’s four tiger economies.
“Taiwan is at a crossroads,” he said. “If we choose the wrong path, we will walk down a road that will become increasingly narrow.”
An effective strategy must be mapped out to address Taiwan’s economic impasse, Siew said. Domestically, the economy must be restructured, he said, including strengthening its creativity and research and development capabilities. Internationally, needless competition must be avoided, he said.
Noting that many opponents of an ECFA worried it would have a dramatic impact on Taiwan’s industries and that it could lead to unification with China, Siew said that President Ma Ying-jeou (馬英九) had vowed that the government would negotiate the trade pact under a principle that prioritizes the interests of Taiwanese.
The legislature will review the draft trade agreement and issues of sovereignty will not be touched in the cross-strait negotiations, he said.
To mitigate the impact of the trade deal on industries, Siew said some businesses would be included in the “early harvest” mechanism. As both sides are set to conduct the second round of official negotiations in the next few months, the administration would try to minimize the negative effects, he said.
At a separate setting yesterday, Democratic Progressive Party (DPP) Chairperson Tsai Ing-wen (蔡英文) said that whether Taiwan should sign an ECFA with China should be decided by the people through a referendum, while a debate between party leaders over the issue is being planned.
Referring to a report that Ma, who concurrently serves as chairman of the Chinese Nationalist Party (KMT), is willing to hold a debate with Tsai over the contents and potential impact of the proposed cross-strait pact, Tsai said that both parties should see to it that a debate is held.
Tsai suggested holding a referendum over the issue.
“The people should have an opportunity to make their own judgment and the best opportunity for them to make that judgment is through a referendum,” she said.
Referring to a DPP survey, Tsai said that between 60 percent and 70 percent of respondents were in favor of a referendum.
While both parties have said since late last year that they would like to see a debate on the matter, the two parties have reportedly been unable to agree on a time or place to hold the event.
Government agencies said they hope to complete negotiations on the agreement with China and sign the pact before June.
ADDITIONAL REPORTING BY VINCENY Y. CHAO AND CNA
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