Taiwan’s financial services sector will be given “WTO-plus” status if it is included on the “early harvest” list of a proposed economic cooperation framework agreement (ECFA) to be signed with China, Vice Premier Sean Chen (陳冲) said.
Speaking to reporters on Tuesday, Chen said inclusion on the early harvest list would give the sector access beyond that granted to the majority of WTO members.
Taiwan and China wrapped up the third round of negotiations on an ECFA in Beijing on Sunday, reaching a preliminary consensus on the content of the agreement, including its early harvest list of goods and services that will be eligible for preferential tariff treatment or improved market access.
While Chen emphasized that the early harvest list has not yet been finalized, he said some 500 items are expected to be included.
However, “the government is trying hard to harvest a few more items,” he said.
If Taiwanese banks are given WTO-plus status, they will be given preferential treatment by China compared with their foreign counterparts, helping them solidify their footholds in the huge Chinese market.
He said that since many Taiwanese manufacturers have relocated to China, local banks would be able to take advantage of the ties already built with these firms at home to serve them there.
On the other hand, because Taiwan’s financial services sector is much smaller than that of China’s, the country is likely to impose necessary defensive measures to shield the domestic sector from possible damage caused by Chinese competition, he said.
Chen said Chinese negotiators declined to make concessions on polyvinyl chloride, polypropylene and machine tools in which Taiwan is globally competitive, but he indicated the government would continue to discuss them with Chinese officials.
Chen said both sides also need more time to negotiate how to deal with local content and product origin issues for assembled vehicles.
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