CECA won't be signed at meet: SEF head

During an economic cooperation forum, Chiang noted that SEF and its Chinese counterpart Association for Relations Across the Taiwan Straits (ARATS) will not ink the CECA, as preparations for negotiations with China concerning the issue have not yet concluded.

“The government has decided to sign a CECA with China at some point in the future, but it won't be during the third round of negotiations between the SEF and the ARATS,” Chiang said.

According to Chiang, forging a CECA with China is vital for the normalization of trade and economic ties between Taiwan and China.

However, the signing of the complex agreement covering a wide range of issues requires discussions among relevant agencies of the two sides before it can be included as an issue on the agenda of future SEF-ARATS talks, he said.

Chiang made the remarks despite calls made by the island's business community that a CECA be signed as soon as possible to keep Taiwan from being marginalized in the Asia-Pacific region.

A CECA is in principle a free trade agreement. The wording is different to sidestep the issue of sovereignty that is sensitive to both Taiwan and China.

Taiwan has been ruled separately from China since 1948, yet most nations in the world recognize there is one China and Taiwan is a part of it.

The issue of CECA arose in the wake of a phenomenon called regional economic integration, the formation of economic entities among nations in the interest of facilitating trade and economic development.

The concept of regional economic integration came about during the 1960s, when countries opted to work together as partners — instead of dividing themselves along ideological lines — to boost their economies. Examples of such integration include NAFTA, ASEAN and EU.

The signing of a CECA with China has become urgent for Taiwan, given ASEAN, or Association of Southeast Asian Nations, will enter the “ASEAN Plus Three” framework with China, Korea and Japan in the near future. Under such framework, goods flowing between the regions will be subject to zero tariffs, a move that will leave Taiwan products unable to compete in the areas.

With a CECA in place, Taiwan can see its goods compete in China on the same footing as those from neighboring countries. At the same time, a CECA may attract other nations to sign free trade agreements with the island.

Yesterday, Lai Cheng-yi, head of the Council for Industrial and Commerce Development (CICD), called on the government to speed up the CECA-signing process with China.

“This is a kind of an economic cooperation mechanism unique only for Taiwan and China,” Lai said. “This would ensure both sides' economic interest and ensure that Taiwan's status would not be downgraded.”

He added signing CECA would create the same positive effects as direct cross-strait transportation opening and a reduction of the gift and estate tax in boosting the island's weakening economy.

The CICD is expected to hold a cross-strait summit in April or May in Taipei, inviting heads of some of China's biggest retail businesses to discuss investment and cooperation opportunities, Lai said.

Meanwhile, the council is planning to form a delegation to visit China in May to push for cross-strait economic ties, he said.

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