Taiwan eyes trade pact with China by end 2010

By EILEEN NG

posted: 16 DAYS 7 HOURS AGO

Text SizeAAA

SINGAPORE -Taiwan's envoy to the Asia-Pacific Economic Cooperation summit said Friday a wide-ranging trade agreement with China to bolster the island's competitiveness could be completed by the end of 2010.

Lien Chan, a former Taiwanese vice president visiting Singapore, said he hopes to hold talks with Chinese President Hu Jintao on the Economic Cooperation Framework Agreement in Singapore.

He didn't say when the meeting will be held but it would have to be on the sidelines of an Asia-Pacific summit, which will take place Saturday and Sunday.

"The ECFA is important to Taiwan because it will institutionalize our trade with mainland China. It will help us to avoid being marginalized in regional and international trade," he told reporters.

The two sides split amid civil war in 1949 and China has not renounced the possibility of reclaiming the island, even by force. But China-friendly Taiwanese President Ma Ying-jeou has sought to bring about closer trade ties with Beijing to boost Taiwan's sluggish economy.

A trade agreement would permit the free flow of many goods, services and capital between Taiwan and China. However, the Taiwan government has said the pact will not include agricultural goods and will not allow Chinese laborers to enter Taiwan.

Lien Chan said the two sides, which have had several rounds of informal talks, hope to launch formal negotiations soon, possibly even by this year.

He said the trade pact would not only bolster bilateral trade but would enable Taiwan to establish free trade agreements with other countries.

Relations with China, an increasingly important market for Taiwan, have improved significantly with some one million Taiwanese working, studying and doing business in mainland China, he said.

"We are making great progress not only in mitigating the so-called tensions across the Straits but in promoting peace, understanding and cooperation across the Straits," he said.

"I don't anticipate any insurmountable difficulties in this negotiation ... we hope we can complete the whole process by the end of next year," he added.

Taiwan officials have said the pact would allow the island to keep its competitive standing in the region, since Beijing is set to allow tariff-free imports from Southeast Asian countries as early as January.

2009-11-13 06:18:51