The Cross-Straits Economic Cooperation Framework Agreement (ECFA) signed between the ROC and mainland China in 2010 means that Beijing will no longer try to hamper Taipei’s negotiation of free trade agreements with third countries, according to a book recently published by the World Trade Organization.
In addition to being an FTA, ECFA “offers a framework through which China is expected no longer to object to Taiwan’s negotiations of FTAs with third parties,” said Craig VanGrasstek, a trade policy specialist at the Harvard Kennedy School, in “The History and Future of the World Trade Organization.”
The rapidity with which the Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Cooperation (ANZTEC) was concluded, with negotiations lasting from May 2012 to July 2013, supports VanGrasstek’s observations.
The ANZTEC is the first FTA Taipei has concluded with a country that does not afford diplomatic recognition. Previous bilateral FTAs inked with diplomatic allies accounted for about 4 percent of Taiwan’s total trade.
“The cross-straits competition over regional trade agreements subsided with the conclusion of the ECFA between Beijing and Taipei in 2010,” VanGrasstek said.
According to VanGrasstek, “the RTAs that mainland China and Taiwan negotiated before 2010 were also caught up with the question of these two WTO members’ diplomatic recognition. These issues also arose in Taipei’s efforts to negotiate an FTA with Paraguay in 2004. The fact that Paraguay recognizes Taiwan but its MERCOSUR partners recognize mainland China complicated the efforts to conclude an FTA.”
The government has said that ECFA and follow-up agreements, such as the recently signed Cross-Strait Trade in Services Agreement, will pave the way for Taiwan to join the Trans-Pacific Partnership and Regional Comprehensive Economic Partnership, helping its integration into the regional economy. (SDH)
Write to Taiwan Today at ttonline@mofa.gov.tw