Gov't to counter trade agreement among China, Japan, S. Korea

The BOFT said the service, petrochemical, steel, machinery, electronics and automobile industries should top the agenda in future negotiations under the economic cooperation framework agreement (ECFA) so that they would remain competitive in China's market even if China, Japan and South Korea form a free trade union.

The bureau made the suggestion in a report on the progress of a free trade agreement among the three nations and its impact on Taiwan.

The report noted that a private study conducted jointly by China, Japan and South Korea in December2008 concluded that the establishment of a free trade zone of the three countries could optimize their interests.

It could boost Japan's GDP by 0.3 percent, China's GDP by 0.4 percent, and South Korea's GDP by 2.8 percent, the study said.

The bureau's report said the three countries have signed FTAs with other countries or regions in recent years that have adversely impacted Taiwan's exports, and if the three were to sign an FTA, then its threat to Taiwan could be even greater.

The BOFT also said that the threat of ASEAN plus three (China, Japan, South Korea), which is still being negotiated, was bigger than the existing ASEAN plus one (China), as all of Taiwan's major trading rivals would be economically integrated.

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