The sixth round of talks between Taiwan’s Straits Exchange Foundation and its mainland Chinese counterpart the Association for Relations Across the Taiwan Straits could face delay unless both parties sort out arbitration rules under the proposed investment protection agreement.
Sources familiar with the matter claim the arbitration issue may push back the next round of cross-strait talks to late-December. “If the meeting takes place in the middle of this month, it is likely the two sides will only discuss the investment treaty’s framework without signing it,” they said.
Minister of Economic Affairs Shih Yen-shiang confirmed Dec. 2 that concluding the pact could be a challenge at the upcoming SEF-ARATS talks.
“It will be very difficult to finalize the bilateral investment treaty at the next round of cross-strait negotiations if they take place in mid-December,” he said.
According to the minister, both sides need more time to explore other options given they have ruled out using the World Trade Organization and the International Centre for Settlement of Investment Disputes under the World Bank as arbitrators.
Shih said the proposed pact must also meet international standards and take into consideration the special cross-strait situation and needs of Taiwanese businessmen operating in mainland China.
There are around 80,000 Taiwan-owned businesses in mainland China, with a total investment of US$150 billion. Last year, the SEF handled 428 investment dispute cases on behalf of ROC nationals. (JSM)
Write to Audrey Wang at audrey@mail.gio.gov.tw