TAIWAN: Government to put free trade pact on agenda of next talks with mainland China

Record ID: 559612

  • Title: TAIWAN: Government to put free trade pact on agenda of next talks with mainland China
  • Date: 23rd December 2009
  • Summary: TAICHUNG, TAIWAN (DECEMBER 22, 2009) (REUTERS) TAIWAN REPRESENTATIVES WALKING INTO THE FORUM VENUE TAIWAN REPRESENTATIVES PLACING DOCUMENTS ON TABLES CHAIRMAN OF TAIWAN'S STRAIT EXCHANGE FOUNDATION CHIANG PIN KUN WELCOMING CHINA'S CHAIRMAN OF THE ASSOCIATION FOR RELATIONS ACROSS THE TAIWAN STRAIT CHEN YUNLIN AT THE ENTRANCE CHINESE REPRESENTATIVES WALKING INTO MEETING VENUE CHEN YUNLIN SHAKING HANDS WITH TAIWANESE REPRESENTATIVES PEOPLE WALKING TO THEIR SEATS CHEN YUNLIN AND OTHER REPRESENTATIVES SITTING DOWN REPRESENTATIVES IN THE MEETING CHEN YUNLIN AND CHIANG PIN KUN SHAKING HANDS AND POSING FOR PICTURES CHEN AND CHIANG SHAKING HANDS TWICE
  • Embargoed: 7th January 2010 12:00
  • Keywords:
  • Topics: International Relations
  • Reuters ID: LVA72GZIM2ODPZXFN2K9Z0WVK0D5
  • Story Text: Formal trade talks between Taiwan and China begin on Tuesday (December 22), following an agreement in principle to put a free trade pact on the agenda of the next round of meetings in China.
    The central Taiwanese city of Taichung hosts the fourth cross-strait forum, a platform to discuss economic related issues, in the midst of on-going protests led by the pro-independence Democratic Progressive Party (DPP).
    During preparatory talks on Monday (December 21) the two associations, Taiwan's Strait Exchange Foundation (SEF), and China's Association for Relations Across the Taiwan Strait (ARATS) decided to postpone signing a deal to avoid double taxation while lowering both corporate and personal income taxes, incentives for Taiwan investors in China, as well as foreign firms based on one side but active on the other.
    "There are still some technicalities to overcome, in yesterday's preparation talks hosted by vice-chairman Kao, and vice-chairman Zheng, they both agree that it is necessary to spend more time on exchanging ideas. I respect this situation, and also wish that we two associations may plan the upcoming forums, so a consensus may be reached as soon as possible," said Chiang Pin-kun, chairman of Taiwan's SEF.
    The officials said Taiwan will sign the pact, known as the Economic Cooperation Framework Agreement (ECFA), in the talks if the timing is right.
    During the previous night, protesters sat across the street from the hotel where the forum is hosted and were surrounded by hundreds of police that blocked them from crossing the road. No violence was reported.
    Some Taiwan merchants in traditional industries fear the ECFA will lead to a flood of competing goods from economic powerhouse China.
    In response, the Chinese chairman of ARATS, Chen Yunlin, said the economic agreement aims for mutual benefit.
    "The framework agreement is a pure economic issue. In the past few years, academic institutions across the strait have done many studies on the topic, and all conclusions show mutual benefits. Therefore, we believe that everything that helps with cross-strait development, everything that helps the people in Taiwan, or helps solve problems for Taiwan, we strive to accomplish, and effort to do the best," said Chen.
    Protesters have vowed to keep targeting Chen throughout his five-day stay.
    Protests during China-Taiwan talks in Taipei last year sparked rioting that injured police and demonstrators.
    China has claimed sovereignty over Taiwan since 1949, when Mao Zedong's forces won the Chinese civil war and Chiang Kai-shek's Nationalists fled to the island. Beijing has vowed to bring Taiwan under its rule, by force if necessary.
    But relations have warmed since China-friendly Taiwan President Ma Ying-jeou took office last year. The two sides have since signed historic trade deals.
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