Long-term effects of new cross-Straits pact go beyond business world
- Source: Global Times
- [23:31 July 01 2010]
- Comments
By Bi Cheng
Top negotiators from the mainland's Association for Relations Across the Taiwan Straits and Taiwan's Straits Exchange Foundation officially signed ECFA at their fifth round of talks on Tuesday. The term ECFA, due to its high exposure in the media, has even sneaked its way into the chatter of old men playing chess in Beijing's hutong and grandmothers selling vegetables in Taipei. However, most of them probably do not know what exactly ECFA means.
There is nothing mysterious about ECFA, which stands for the Economic Cooperation Framework Agreement. In 2005, Hu Jintao, general secretary of the CPC Central Committee, and Lien Chan, then-chairman of the Kuomingtang Party in Taiwan, jointly issued a declaration of "common aspiration and prospects for cross-Straits peace and development," which included the establishment of a cross-Straits economic cooperation mechanism.
Taiwan leader Ma Ying-jeou proposed signing the Comprehensive Economic Cooperation Agreement (CECA) between the mainland and Taiwan during his election campaign in 2008. He changed the name of CECA into ECFA in 2009.
Whatever it is called, the official signing of such a pact is an arrangement that reflects the normalization and liberalization of cross-Straits economic ties. The pact will work for the welfare of civilians on both sides on the basis of equality and mutual benefit.
Beijing views "equality and mutual benefit" as part of a broader picture. Equality is not necessarily reciprocity, and mutual benefit means making concessions.
ECFA is aimed at solving problems in cross-Straits economic ties, and should follow the principles of the market. However, it also reflects the shared heritage and common interests of the mainland and Taiwan. ECFA will benefit both small and medium-sized enterprises and ordinary people in Taiwan.
Mainland policies, with the ultimate goal of peaceful reunification, have been aimed at facilitating growth in Taiwan. When it came to ECFA, more concessions were made on the mainland than on the Taiwan side.
ECFA's positive influence on Taiwan's economic growth will be both instant and long lasting. After the signing of ECFA, both ordinary goods and service products from Taiwan will have more advantages when entering the mainland markets. Taiwan's small and medium-sized enterprises will grow, as will the local employment rate.
In the long term, ECFA will aid Taiwan to overcome effects of the financial crisis, resume economic growth and realize industrial updating. Taiwan can also improve its economic structure and share regional economic growth opportunities so as to avoid being marginalized.
