Minister of Economic Affairs Yiin Chii-ming (尹啟銘) said yesterday that some form of economic framework with China was inevitable to avoid being marginalized.
Without such a framework, industries such as textiles, petrochemicals and heavy machinery would relocate overseas, creating massive unemployment and creating gaps in critical supply chains, Yiin said at the first of 22 public hearings on the government’s plan to sign an economic cooperation framework agreement (ECFA) with China.
“The public misunderstands the Ministry of Economic Affairs and thinks that we’re pro-China. The reality is our biggest trading partner has always been the US, and we know it,” Yiin said.
He said a study conducted by the IMF showed that the Taiwanese and the US’ “economic elasticity was 1.2, which means if the US economy were to rise by 1 percent, our economy would rise by 1.2 percent, and vice versa.”
Yiin told the more than 250 businesspeople attending yesterday’s meeting that an ECFA with China was urgently needed or Taiwan might be left out of any favorable trade agreement with ASEAN and the rest of the world.
Over the past decade, members of the ASEAN Free Trade Area (AFTA), South Korea, Hong Kong, Macau, Japan, New Zealand, Australia, Singapore, Japan and even India had all signed agreements with China, he said.
Taiwan has not been able to join AFTA. Although it has tried to sign free-trade agreements with countries such as the US, Japan, Singapore and South Korea, its efforts have failed because of pressure from China.
“ECFA is simply a term that is still awaiting approval by the Chinese. Taiwan cannot sign a Closer Economic Partnership Agreement with China because that is a one- country agreement between the mainland and Hong Kong,” he said.
“We cannot sign a free-trade agreement because it would mean allowing a free flow of goods and services between two countries, and Taiwan is not ready at this point,” Yiin said.
Taipei and Beijing are still evaluating the pros and cons of proceeding with such a long-term arrangement and have not even begun direct dialogue yet, he said.
Yiin promised that signing an ECFA would not mean sacrificing Taiwan’s sovereignty because the issue would not even be part of the ECFA discussions.
Chinese agricultural products and workers will not be part of the trade talks, he said.
Representatives of the leather association, shoe association,and the confectionery, biscuit and floury food association voiced concern that the government might balk during trade talks with China instead of protecting their interests, media reports said yesterday.
Taiwan Footwear Manufacturers Association (台灣製鞋品發展協會) chairman Chiao Chien-ho (趙建和) said his group hoped the government would drop the ECFA idea because the pact would damage the industry.
The groups said they wanted written guarantees from the government to protect their industries.
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