China's Wen seeks to reassure Taiwan on trade deal

Wen, speaking at his annual news conference, said the proposed economic cooperation framework agreement (ECFA) with Taiwan should hurt neither the island's farmers nor small businesses.

“I believe that in negotiating this agreement, we need to consider the size of the economy and trade conditions as well as the interests of both sides,” Wen said.

“We need to keep in mind Taiwan's small businesses and ordinary people, and the interests of farmers in Taiwan.”

Positive signs for the trade deal are seen firming Taiwan's stock and currency markets, which have gained on signs that export-reliant Taiwan is getting closer to economic powerhouse China despite decades of hostilities.

“We will let the people of Taiwan benefit from tariff conditions and early harvest programmes,” Wen added.

“Relevant arrangements will also be made to help reassure farmers in Taiwan,” he said.

Taiwan's China-friendly Nationalists (KMT) led by President Ma Ying-jeou want the trade deal, which would slash tariffs in hundreds of sectors, to help the island's economy and open it to free trade deals around the world.

“On ECFA, we've said before it wouldn't open the market to Chinese agricultural products,” Liu Te-shun, deputy minister at Taiwan's Mainland Affairs Council, said when asked about Wen's remarks. “On that basis ... we're on the same page.”

But Taiwan's anti-China opposition Democratic Progressive Party (DPP) says the pact would flood the island with cheaper Chinese goods. The two parties face tense year-end local elections seen as a bellwether for the 2012 presidential race.

“The Chinese side is trying to help Ma Ying-jeou not let the DPP play this card against the KMT,” said George Tsai, a political scientist at Taipei's Chinese Cultural University.

“They understand the DPP is playing this card in the local elections,” he said.

China has claimed sovereignty over self-ruled Taiwan since 1949, when Mao Zedong's forces won the Chinese civil war and Chiang Kai-shek's KMT fled to the island. Beijing has threatened to attack if Taiwan tries to declare independence.

Ma has brokered landmark trade and tourism agreements with China since taking office in 2008 and wants to get the ECFA signed by early 2010. But the issue of ties with China remains highly divisive in Taiwan.

Wen said he was optimistic about the new trade deal.

“Negotiations are complex, but differences between brothers cannot sever blood ties. Problems can always be solved,” he said.

Subscribe to The China Post and save 25%. Click here

SharePrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email