Taipei, Beijing ink services trade pact
Taiwan Today | 25 June 2013
Taipei, Beijing ink services trade pact
By Meg Chang
Taiwan and mainland China concluded the Cross-Strait Trade in Services Agreement June 21 in Shanghai, ushering in a new era of bilateral business ties and strengthening the island’s bid for greater regional economic integration.
“The landmark pact, along with the previous 18 cross-strait agreements finalized since 2008, is a key plank in cementing mutual trust, promoting reciprocal benefits and stabilizing Taipei-Beijing relations,” Premier Jiang Yi-huah said.
“It will help fast-track discussions on other follow-up issues, including agreements on commodity trade, dispute settlement and double taxation, as well as collaboration on meteorology and earthquake research.”
Jiang said the “free trade agreement,” which will be reviewed by the Legislative Yuan, underscores Taiwan’s commitment to greater trade liberalization and helps smooth the way for more FTAs with its major trading partners.
“We have instructed all relevant agencies to step up efforts in communicating the pact’s economic benefits to the public and mapping out support measures for local industries that might be adversely affected.”
According to the Ministry of Economic Affairs, the agreement calls for Taiwan and mainland China to grant each other most favorable treatment in sectors covered by the deal.
Taiwan will open 64 sectors to mainland China, including banking, insurance, medical service, securities brokerage, technical certification and analysis as well as tourism. Mainland China is set to allow Taiwan investment in 80 sectors spanning banking, culture and creativity, e-commerce, insurance, securities brokerage, technical certification and analysis plus transportation.
While both sides agree to grant greater market access to each other, given the special nature of cross-strait relations, Taiwan will still control the pace and scope of further regulatory easing on incoming mainland Chinese investment.
The deal also requires both sides implement their respective trade regulations in a fair and objective manner and refrain from engaging in unfair competition.
MOEA statistics show that the services sector accounted for 68.5 percent of Taiwan’s gross domestic product last year and employed 58.8 percent of the workforce.
The agreement was signed during the ninth round of talks between Taipei-based Straits Exchange Foundation and its Beijing counterpart Association for Relations Across the Taiwan Straits. The next meeting will be held later this year in Taipei City. (JSM)
Write to Meg Chang at sfchang@mofa.gov.tw
