Taiwan and mainland China are moving closer to signing a service trade agreement under the Cross-Straits Economic Cooperation Framework Agreement (ECFA), according to the ROC Mainland Affairs Council May 27.
“The pact will be the first free trade agreement between Taiwan and mainland China in accordance with the ECFA and General Agreement on Trade in Services of the World Trade Organization,” MAC Minister Wang Yu-chi said.
“The signing of the landmark pact sends a strong message to the world that Taiwan is committed to pursuing further trade liberalization. It also paves the way for Taiwan to play a bigger role in regional economic agreements such as the Trans-Pacific Partnership and Regional Comprehensive Economic Partnership.”
The minister made the remarks during a news conference in Taipei city detailing progress of related negotiations between the two sides. Also attending were senior officials from the Banking Bureau, Ministry of Economic Affairs and Securities and Futures Bureau.
The deal will help deepen trust between Taipei and Beijing, fast-track review of the Act Governing Relations between the People of the Taiwan Area and the Mainland Area, and promote cross-strait ties, Wang said.
“It will also pave the way for smooth negotiation of other follow-up pacts such as agreements in trade service and dispute settlement.”
According to the MAC, negotiation of the agreement began in February 2011, with more than 10 meetings taking place between officials from both sides in the past two years.
The signing of the pact, the 19th between Taipei and Beijing, is expected to take place in mainland China during the ninth round of official talks between Taiwan’s Straits Exchange Foundation and its mainland Chinese counterpart Association for Relations Across the Taiwan Straits.
Sources familiar with the matter revealed that the agreement will see Taiwan and mainland China open 55 and 65 sectors, respectively, to each other. The deal is expected to spur domestic investment in Taiwan by 2.97 percent or US$1.5 billion. (JSM)
Write to Meg Chang at sfchang@mofa.gov.tw