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TRADE AGREEMENT MOST PRACTICAL DEAL FOR NOW: TAIWAN OFFICIAL.
TAIPEI, Jan 1 Asia Pulse - The deputy chairman of the Straits Exchange Foundation (SEF) , Kao Koong-lian, said Wednesday that it is better for Taiwan to sign a trade and investment framework agreement with China (TIFA) than a comprehensive economic cooperation agreement (CECA) at the present time.
"At the present stage of cross-strait economic relations development, it would be more pragmatic and beneficial for Taiwan to sign a TIFA with China, " said Kao. Such an agreement could pave the way for a much more complex and politically sensitive CECA between the two sides of the Taiwan Strait in the future.
Tariff rates still need to be resolved before both sides can sign a TIFA but the difference might create business opportunities for Taiwanese investors in China
As foreign products were subject to lower tariff rates in Taiwan compared to China those products could be sold to China for a higher price, said Kao.
Asked about recent criticisms about the proposal of signing a CECA with China, Kao said the true meaning of such an agreement was to reduce tariff rates and trade barriers in Taiwan and China trade. He said some critics placed too much emphasis on the name of the agreement.
Some members of the opposition Democratic Progressive Party are concerned that with the signing of a CECA with China will follow the Hong Kong model, which would downgrade Taiwan to the level of a local government, and fall into China's "one country, two systems" arrangement.
"The name of the agreement is insignificant ...
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