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SEF, ARATS ink investment, customs pacts

Chiang Pin-kung (right) and Chen Yulin, respective SEF and ARATS chairmen, exchange greetings during cross-strait talks Aug. 9 in Taipei City. (CNA)

• Publication Date：08/10/2012
• Source： Taiwan Today
• By  Rachel Chan

Taiwan and mainland China concluded two agreements on investment protection and customs cooperation Aug. 9 in Taipei City, further strengthening economic exchanges between the two sides.

The pacts, which are part of follow-up negotiations under the Cross-Straits Economic Cooperation Framework Agreement (ECFA), were signed by Chiang Pin-kung, chairman of Taipei-headquartered Straits Exchange Foundation, and Chen Yunlin, chairman of Beijing’s Association for Relations Across the Taiwan Straits.

“The investment agreement offers cross-strait investors institutionalized protection for their commercial rights and interests,” Chiang said. “This will have a positive effect on creating a more robust cross-strait business environment.”

One of the pact’s key features is a systematic and diversified dispute settlement mechanism allowing Taiwan and mainland China companies to resolve their differences in an orderly fashion. This includes mediation procedures for disputes between firms and government bodies.

The agreement also protects the personal safety of ROC nationals doing business on the other side of the strait, stipulating that if they or their employees and dependents are detained, mainland Chinese authorities should notify family members in accordance with local regulations. Under ROC law, this period is 24 hours.

As for the customs cooperation pact, Chiang said it will reduce business costs by fast-tracking clearance procedures. He added that it also provides a platform for Taipei and Beijing to strengthen consultations on customs-related issues, crack down on smuggling and bolster border protection.

The agenda for the next round of cross-strait meetings may include finalizing a cross-strait services trade agreement and further negotiations on opening reciprocal representative offices, according to the SEF.

Since ROC President Ma Ying-jeou took office in May 2008, the SEF and ARATS have held regular talks with meetings alternating twice a year between Taiwan and mainland China. A total of 18 pacts have been signed to date, resolving substantive issues in cross-strait exchanges. (JSM)

Write to Rachel Chan at ccchan@mofa.gov.tw