Envoys from Taiwan and China agreed to launch official negotiations on a controversial proposal for a cross-strait “economic cooperation framework agreement” and signed three new economic agreements on Tuesday despite protests by opposition groups against the trade pact.

Taipei’s Strait Exchange Foundation Chairman Chiang Ping-kun and Beijing’s Association for Relations Across the Taiwan Strait Chairman Chen Yunlin began the fourth set of talks between the two “semi-official” agencies at 9:00 a.m. at the Windsor Hotel on the western outskirts of the central Taiwan city under heavy guard.

At 2:30 p.m., the two chairman of the intermediary organizations officially signed three agreements on cooperation in the setting of industrial standards and certification, on the inspection and quarantine of agricultural products and on labor affairs related to the fishing industry, but did not sign a draft pact on avoiding double taxation due to “technical problems.”

In a news conference held after the signing ceremony, ARATS Vice Chairman Zheng Lizhong told reporters that the two sides had agreed to hold the fifth set of SEF-ARATS talks in China in the first half of 2010 and to focus on the two “key issues” of the ECFA and protection for cross-strait intellectual property rights.

Besides reviewing the three new pacts, Zheng related that the ARATS chairman had commented that signing the ECFA was an important response to the global financial tsunami and regional economic integration and was necessary to continue cross-strait economic cooperation and promote the welfare of “compatriots” on both sides of the Taiwan Strait.

Zheng stated that in principle such an accord should be in accordance with the framework of the World Trade Organization since both the PRC and Taiwan are WTO members, but stressed that “we must consider the special features of the Taiwan economy and the absorption capacity of its market and the degree of acceptance of the Taiwanese people.”

“We will make proper and reasonable arrangements on key issues of concern to the Taiwanese people,” added the ARATS official.

Zheng stated that the listing of the ECFA as a “key issue” was possible due to the scale and scope of cross-strait trade and economic interactions and the completion of research by both sides which reached a consensus that the pact would bring “mutual benefit.”

Zheng said the two sides would “begin with setting out a framework and setting objectives” and discussing “early harvest” features and then proceed to discuss concrete sector issues in a phased and systematic process.

Zheng stated that the ECFA would involve trade in goods, investment and services and aimed to achieve “more rational allocation of cross-strait resources” and would delineate “what we will do and what you can do.”

The ARATS vice chairman stated that China can offer “a rich market, abundant labor and rapidly expanding infrastructure in railways, seaports and airport, while Taiwan has innovation and market channels.”

The ARATS vice chairman also declared that “everyone on both sides of the Taiwan Straits are all Chinese and if we do not care about the welfare of our own flesh and bones, who will?”

Asked if the ARATS chairman would consider engaging in dialogue with opponents of the trade pact such as Democratic Progressive Party Chairwoman Tsai Ing-wen, Zheng stated that the PRC side was willing to “engage in dialogue with anyone including any person from the DPP so long as they do not engage in Taiwan independence.”

SEF Chairman Chiang Ping-kun confirmed that the two sides had agreed to focus on the ECFA and IPR protection in the next set of talks as well as launching a platform for cooperation on natural disaster prevention and response.

Chiang said that responsible agencies for both sides had already had preliminary contact on ECFA, but the listing of the trade pact as a priority for the fifth talks would allow the launching of “formal bilateral consultations” among related government agencies for both sides to be arranged by the SEF and ARATS.

In a statement made at the beginning of yesterday’s talks, Chiang had stated that the two sides should “work hand in hand” to cope with the challenges of the global financial tsunami and Asian regional economic integration to “turn these challenges into new opportunities for cross-strait mutual benefit.”

Chiang stated that discussion of a cross – strait ECFA “cannot be delayed” but added that “in the process of promotion of the ECFA, we must seriously face the differences in overall economic scale and other differences from the stance of mutual respect.”

DPP Policy Research and Coordination Department Deputy Director Lin Chien-hsin told reporters that “these statements by Chiang and Chen are empty rhetoric.”

“The reason why we believe the cross-strait agreements serve special interests and certain conglomerates is linked to the Ma administration’s structuring of cross-strait policy and negotiations.”

Lin added that the government’s promotion of ECFA “has only been concerned with trade effects for a small range of industries and has ignored the possibility that lower tariffs between China and Taiwan without free trade agreements with ASEAN and other markets could spur even more Taiwan investment and capital flight to China and worsen unemployment.”

“The widespread feeling among Taiwanese people is that they have not seen any real benefit from these agreements,” said the DPP policy analyst.

More Info: http://www.taiwanheadlines.gov.tw/ct.asp?xItem=174815&CtNode=39