The Cross-Straits Economic Cooperation Framework Agreement (ECFA) between Taiwan and mainland China has paid handsome dividends in local investments and job opportunities, according to the Bureau of Foreign Trade May 8.
“In the first quarter of this year Taiwan attracted US$2.43 billion in foreign investments, 24.3 percent of our yearly goal of US$10 billion,” said BFT Director-General Cho Shih-chao at a news conference reviewing ECFA’s benefits.
“Meanwhile, Taiwan businesses operating overseas also poured NT$14.5 billion (US$496 million) into the local economy,” he said, adding that these investments have helped create a large number of job openings.
Cho cited survey results from the Directorate-General of Budget, Accounting and Statistics showing that the manufacturing industry employed 2.63 million workers in the first two months of this year, 2.37 percent more than during the same period last year.
Within the manufacturing industry, the chemical materials manufacturing sector did especially well, hiring 5.56 percent more people than it did in the first two months of 2011, he said.
“Japanese firms such as camera-maker Canon Inc. and machine tool manufacturer Fanuc Corp. were major investors,” Cho said. “They find Taiwan attractive because of ECFA, which has eliminated tariffs on more than 500 kinds of exports from Taiwan to the mainland market.”
According to the Ministry of Economic Affairs, ECFA lowered customs duties on 72 types of Taiwan-made goods to zero at the beginning of 2011; tariffs on an additional 437 commodities were lowered at the start of 2012.
Saved tariffs on exports to the mainland have added up to US$225 million so far, helping to make the companies more competitive in the mainland, the MOEA said.
The government hopes to conclude an investment protection agreement with mainland China in the coming months, as well as one on dispute settlements, Cho said.
“We believe that during the remainder of this year and throughout next year ECFA will continue to provide a stimulus to the local economy,” Cho said. (HZW)
Write to Aaron Hsu at pj1210meister@mail.gio.gov.tw