Taipei Times (TT): The government released the ECFA’s early harvest lists — goods and services that will be subject to immediate tariff reductions — for the first time on Thursday. It looks like the list will favor Taiwanese exporters as China will lower tariffs for 539 Taiwanese items, Taiwan’s market will open up to 267 items from China. What’s your thoughts on this list?
Taiwan Solidarity Union (TSU) Chairman Huang Kun-huei (黃昆輝): All these figures that the government talks about don’t reflect the true realities of an ECFA.
What we are concerned about is neither Taiwan nor China’s early harvest list of tariff reductions, but instead the continued opening of Taiwan’s market to China — a move that could liberalize up to 90 percent of China’s exports toward Taiwan in 10 years.
Under the WTO [both Taiwan and China are members of the WTO] regulations, both sides will have to significantly lower customs barriers ... 10 years after the agreement is signed. So, while we see that Taiwan has more goods and services subject to tariff reductions than China, we have to take into account that this is only the first negotiations.
For example, the government says that agricultural goods won’t be liberalized, but this is only for now, what about the future? The labor market is the same: It’s not open for now, but how about in the future?
TT: Which exactly is this WTO regulation that you mentioned?
Huang: The WTO’s regulations state that if a free-trade Agreement (FTA) is signed between two member countries, trade between the two must be liberalized by up to 90 percent within a decade. So, if the government considers [an ECFA] to be an FTA under the WTO framework, or a transition toward an FTA, we must accept WTO regulations.
So when they say that agricultural products won’t be opened, it is only for now that we have not included them in our early harvest list. But in the future? Every six months, we have to reopen negotiations, every year twice and in 10 years we will have had 20 meetings that will deliberately and continuously tear down our trade barriers.
TT: So far, we have heard mixed comments from government officials on whether an ECFA would constitute an FTA. Based on your understanding, is an ECFA an FTA?
Huang: Currently, the talks between Taiwan and China on an ECFA seem to treat it like a transitional agreement to an FTA, but it is very ambiguous. After we sign an ECFA, we will have to meet two challenges: If we recognize that this is an FTA, we will have to open up our market. But on the other hand, if we don’t want to follow WTO regulations, then an ECFA will entirely become a domestic law.
Under a domestic law, China will assume a commanding position and Taiwan will be entirely subject to Chinese authority.
However, as I see it, [an ECFA] should count as a transitional agreement to an FTA.
TT: One of the arguments your party has used to oppose the signing of an ECFA is the fear that the trade pact would result in Taiwan becoming part of a “one China market” — a concern the government has denied. The government says the talks have not infringed on Taiwan’s sovereignty, what are you views toward this?
Huang: The Chinese side has already made their position very clear — that signing an ECFA takes place under the “one China framework.” An ECFA is the start of a “one China” market — which Taiwan’s market would become part of and be locked into.
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