Taiwan to pursue FTAs with other trade partners

But while he welcomed the strengthening of economic ties with China, he said Taipei will not be rushed into discussing “political issues” with Beijing.

The deal — known as the Economic Cooperation Framework Agreement (ECDA) — was inked in Chongqing, China, on Tuesday. Under the deal, the two sides will cut tariffs on more than 800 products and open up 20 service sectors to further boost bilateral trade already worth US$100 billion a year.

Speaking at a press conference to outline Taiwan's economic strategy after ECFA, Ma said: “Not only will the pact influence the future of cross-strait ties, but it also further consolidates current cross-strait peace and prosperity.”

While ECFA is certain to give a fillip to the Taiwanese economy, Ma stressed it was just one part of his government's overall economic strategy.

He has also outlined plans to set up a global economic strategy committee to help Taiwan attract more investments and conclude free trade agreements (FTAs).

China's top Taiwan affairs official Wang Yi had said Beijing would handle Taipei's wish for FTAs with others in a “pragmatic” and “appropriate” manner.

With the conclusion of ECFA, Ma said he was optimistic that China would now soften its resistance towards Taiwan's bid to pursue free trade deals with others.

“There are actually some South-east Asian nations and other Asia-Pacific nations that are interested,” he revealed, without naming the countries. He added that he expected “some specific results” in “the near future”.

Taiwan media have reported that the government plans to sign a deal with either Singapore, Malaysia or Thailand by the end of 2012.

“If Taiwan wants fast results, some actual benefits and not too much difficulties or painful decisions, I think Singapore would be a good partner,” professor Chen Tain-jy of the National Taiwan University told The Straits Times.

Taiwan has little to fear about having to open up its agricultural sector as Singapore does not produce much farm goods, he noted.

Earlier FTA discussions between the two sides had broken down because the former Democratic Progressive Party (DPP) government had wanted Taiwan to sign the pact as a political entity.

The DPP, now in opposition, is likely to try to stall the ratification of ECFA in the legislature on the grounds that it could deepen Taiwan's reliance on China and lead to its eventual unification with the mainland. But Ma's ruling Kuomintang, which has a majority in Parliament, is expected to push through the deal eventually.

Ma has also tried to ease fears over China's intentions.

Asked whether China has political motives for inking ECFA, he said: “We have always understood that China has political designs on Taiwan.”

But both sides agreed that the timing was not ripe for political discussions, he noted. “We hope to gain enough time for people across the Taiwan Strait to have economic, cultural or other exchanges to better understand one another.”

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