European trade group urges Taiwan to sign trade deals with China
Taiwan News | 2009-10-31
European trade group urges Taiwan to sign trade deals with China
Central News Agency
Taipei, Oct. 31 (CNA) — The Taipei-based European Chamber of Commerce (ECCT) has called on Taiwan to embrace trade agreements with China and the European Union, contending that such deals will secure its position in the new economic world order.
ECCT Chairman Philippe Pellegrin said that as economies across the world begin to bounce back from recession, Taiwan needs to respond to the competitive threat posed by the network of free trade agreements in Asia.
"Signing the Economic Cooperation Framework Agreement (ECFA) with China is vital to the continuing competitiveness of Taiwan’s export industries and therefore essential to foreign investment in Taiwan, " Pellegrin said.
"By reintegrating into the global and regional economy, Taiwan will be able to secure its position as an important link between China and Europe," he added.
Pellegrin was speaking at an ECCT monthly luncheon held the previous day in which the trade group released its 2009-2010 Position Papers, centered around the theme "Bouncing back — finding a place in the new economic world order: EU-Taiwan — a spirit of cooperation." The first copy of the report was officially handed over to the government’s Council for Economic Planning and Development (CEPD) at the luncheon.
Pellegrin argued that the sooner Taiwan signs an ECFA with China, the quicker political impediments to other countries, including the EU, signing economic agreements with Taiwan will be removed.
"An ECFA would provide Taiwan with new business opportunities and help to create much needed jobs," he contended.
Taiwan and China will hold informal talks on the ECFA deal in Beijing Nov. 3-4. Taiwan hopes to seal an ECFA agreement with China as soon as possible to reduce the impact on Taiwanese exporters of the economic integration of China and the Association of Southeast Asian Nations (ASEAN), which will come into force next year.
The ECCT also called on the Cabinet to take ownership of and commit to a Trade Enhancement Measures (TEM) agreement with Europe, especially given the current tough economic times.
The combination of the global recession and the after effects of Typhoon Marakot have left Taiwan’s economy in a weakened state, according to the ECCT, citing Taiwan’s declining imports and exports, 6 percent unemployment, and a 51 percent year-on-year decline in foreign direct investment in Taiwan during the first eight months of the year.
The European trade group estimates that TEM trade liberalization measures would boost the EU’s gross domestic product (GDP) by 2 billion euros (US$2.95 billion) and Taiwan’s GDP by 3.8 billion euros, creating more jobs and output for both sides.
The ECCT, founded in 1988, is the foremost organization championing the business interests of European companies in Taiwan.
It represents around 700 members from 420 companies and organizations.
(By Rachel Chan)
