European businesses call for Taiwan free trade pact
Agence France Presse | 19 October 2010
European businesses call for Taiwan free trade pact
TAIPEI — An influential European business group on Tuesday called for a free trade pact with Taiwan, bolstered by the signing of a sweeping trade agreement between the island and China.
The European Chamber of Commerce Taipei hailed the Economic Cooperation Framework Agreement (ECFA) between Taipei and Beijing, saying it hoped it would pave the way for Taiwan to sign pacts with other economies.
The landmark deal came into effect in September, conferring preferential tariffs on a range of goods between Taipei and Beijing.
"It is hoped that better cross-Strait relations will eventually lead to an agreement that will make it possible for Taipei to negotiate free trade agreements with other nations," the Chamber said in a statement
The ECFA is widely considered the boldest step yet towards reconciliation between the former rivals, who split after the end of a civil war in 1949.
"Now that cross-Strait relations have improved, it is hoped that Taiwan can pursue free trade agreements with its major trading partners including a TEM (Trade Enhancement Measure) with the (European Union)," the Chamber said.
Taiwan insists ECFA means Beijing has given the nod to Taipei going ahead with similar pacts with other countries.
Taiwan has free trade deals with Panama, Guatemala and Nicaragua and has been pushing for tie-ups with other trading partners including Singapore as it tries to avoid being marginalised by a growing number of regional economic blocs.
But talks have become bogged down, largely due to pressure from Beijing, which still considers the island part of its territory, even though it has governed itself since the end of a civil war in 1949.
Ties between Taiwan and China have improved markedly since Ma Ying-jeou of the Beijing-friendly Kuomintang came to power in 2008, pledging to boost trade links and allowing in more Chinese tourists.
