Ma Ying-jeou proposes signing cross-Strait economic agreement
CENS (Taiwan Economic News)
Ma Ying-jeou Proposes Signing Cross-Strait Economic Agreement
2008/05/02
Taipei, May 2, 2008 (CENS)—President-elect Ma Ying-jeou has proposed signing a general cross-Taiwan Strait economic agreement to address cross-Strait economic issues, including investments by Taiwanese financial institutions in China, investments protection, and avoidance of double taxation.
Ma put forward the idea during a gathering of the "33 Club," an association of domestic business leaders, on April 30, saying it is a third alternative to govern cross-Strait economic relations, other than the signing of a free trade agreement (FTA) or a Closer Economic Partnership Agreement (CEPA).
Ma noted that mainland China would oppose to FTA, which is essentially an agreement between nations, while Taiwan is unlikely to sign a CEPA with China, like the cases of Hong Kong and Macao, which would belittle its status.
Ma raised the idea in response to urge of Lo Lien-fu, chairman of Chinatrust Bank, who urged Mas government to lift the restriction on direct investments by domestic financial institutions in China. Lo said that the financial industry is the one suffering the strictest difficulty in tapping the mainland Chinese market.
The President-elect also pledged not to scrap all investment incentives for local industries, following the expiration of the Statute for Industrial Upgrading, saying that such incentives will be revised from the angles of functions and industries, so as to benefit Taiwans economic development.
(by Philip Liu)
