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Taiwan supports economic coop with mainland

Updated: 2009-04-21 07:21

By Xie Yu(HK Edition)

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BEIJING: Taiwan aims to put a framework for economic cooperation with the mainland in place by the end of the year, said a high-ranking official.

Lin Sheng-chung, "deputy minister of the ministry of economic affairs," quoted by Taiwan news portal, Now News, made the comment just days before the two sides hold their highest-level semi-official meeting on Saturday.

According to a recent Taiwan government survey, 70 percent of people are in favor of inking an economic cooperation framework agreement (ECFA) with the mainland to deal with two-way trade and investment issues. The poll of 1,067 respondents was released yesterday.

Meanwhile, 79.9 percent agreed that mainland investment under some limits in Taiwan should be permitted.

Some 69.2 percent of respondents expressed optimism Taiwan and the mainland will develop closer trade and commercial ties in the future.

Around 60 percent of respondents said a cross-Straits ECFA will help Taiwan clinch similar agreements with other jurisdictions, while 60 percent said possible reduced tariff provision of an ECFA will help Taiwanese manufacturers get a bigger share of the mainland market.

Zhang Guanhua, deputy director of the Institute of Taiwan Studies under the Chinese Academy of Social Sciences, said Taiwan is pushing the issue since its exports will be at a disadvantage once an economic cooperation agreement between China and the Association of Southeast Asian Nations takes effect next year.

"More and more people from Taiwan are realizing the significance of signing an agreement with the mainland regarding tax reduction, market access and the possibility for investment and trade," he said.

Zhang said the survey showed the "opposition voice is losing its support on the island".

"As the mainstream on the island now supports the proposal, I feel it's very likely we'll see an economic cooperation agreement within the year," Zhang said.

Financial cooperation, along with joint efforts to crack down on crime, regular cross-Straits flights and judiciary assistance will be four major topics of the talks between the mainland's Association for Relations Across the Taiwan Straits (ARATS) and the Taiwan-based Straits Exchange Foundation (SEF) to be held in Nanjing this Saturday.

The two sides will also discuss mainland investment in the island.

Taiwan leader Ma Ying-jeou proposed signing a comprehensive economic cooperation agreement with the mainland during his election drive, in a bid to enhance cross-Straits economic ties.

Due to great pressure from the opposition on the island, the topic of signing an economic cooperation framework was not included in Saturday's talks.

(HK Edition 04/21/2009 page16)

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