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Updated Wednesday, August 18, 2010 9:35 am TWN, The China Post news staff



	Members of an organization opposed to the economic cooperation framework agreement (ECFA) signed between Taiwan and China stage a protest against the trade pact outside the Legislative Yuan. Protesters seeking Taiwanese independence urged lawmakers of the opposition Democratic Progressive Party (DPP) yesterday not to review the pact. (Akie Ang, The China Post) Enlarge Photo

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Lawmakers pass landmark ECFA with China

TAIPEI, Taiwan -- The Legislative Yuan late last night passed a landmark trade pact signed with China despite the boycott of the opposition Democratic Progressive Party (DPP) and protests from its supporters.

Lawmakers of the ruling Kuomintang (KMT) gave a major concession by agreeing to screen the economic cooperation framework agreement (ECFA) article by article after calls from the DPP.

The two parties sent respective lawmakers at 9 a.m. to make comments on each of the 16 articles in the agreement.

KMT members then outvoted their DPP counterparts in every showdown.

But DPP legislators decided to boycott the second and final reading of the agreement at around 10 p.m. while KMT lawmakers gave the final and concluding endorsement to the bilateral pact, which was signed in late June.

Legislative Yuan Speaker Wang Jin-pyng announced the official passage of the ECFA and five attached documents, including products and services on the “early harvest” lists entitled to tariff reduction or elimination at an earlier date, rules on origin of products, relief measures on trade, and definitions for service providers.

He said the ECFA became the first item cleared by the legislative floor in the extraordinary legislative session. Only bills of laws and budget plans require three readings by the lawmakers, he explained.

President Ma Ying-jeou will formally announce the terms of the trade agreement.

Officials at the Ministry of Economic Affairs said they expect the ECFA to be implemented simultaneously by Taiwan and China next month.

But the reduction and elimination for import customs tariff rates on selected products will go into effect on Jan. 1 next year.

They said the two sides will soon establish a mechanism for regular consultation, including the formation of a cross-strait economic cooperation conference to review trade practice in the post-ECFA era for revisions of trade policies in future talks.

Within six months after the ECFA takes effect, the two sides will start negotiations on investment protection, a mechanism to settle disputes, service trade, and merchandise trade.

The new negotiations will be carried out by the Taipei-based Straits Exchange Foundation (SEF) and the Beijing-based Association for Relations Across the Taiwan Strait (ARATS) with participation of officials from the two sides.

SEF Chairman Chiang Pin-kung said trade offices to be set up on both sides of the Taiwan Strait under the ECFA will facilitate business exchanges between the two sides.

He made the remarks during a dinner meeting with visiting Guangdong Governor Huang Huahua from China.

Chiang said that trade organizations like the Taiwan Electricaland Electronic Manufacturers Association and the Taipei-based Chinese National Federation of Industries will be able to set up offices across the strait under the ECFA.

The new policy will benefit Taiwanese businessmen with operations in China, Chiang said.

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