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Lin Chu-Chia: Government Adheres to Principle of "Maximizing Benefits and Minimizing Impacts" in Signing of Cross-Strait Trade in Services Agreement to Create Jobs, Expand Economic Development Niches and Enhance National Competitiveness for Taiwan

  • Date:2013-09-12

September 12, 2013
No. 070

MAC Deputy Minister Lin Chu-chia attended a seminar held this morning (September 12) jointly by the Mainland Affairs Council (MAC) and National University of Tainan (NUTN) for scholars in the Tainan area, during which he said that the Cross-Strait Trade in Services Agreement (hereinafter as the Agreement) is a follow-up agreement under the Economic Cooperation Framework Agreement (ECFA). The Agreement will further open the cross-strait services market and help Taiwanese companies develop and enhance their competitiveness in the Mainland market. At the same time, it will also attract more Mainland investment to Taiwan, which will help invigorate the economy and increase employment.

Today's seminar was co-hosted by Deputy Minister Lin and Associate Professor Wu Tsung-hsien at NUTN's Department of Public Administration and Management. Deputy Minister Lin explained the government's Mainland policy stance, the contents and evaluation of benefits the Agreement will bring, and also exchanged views with the Tainan scholars and listened to their policy advice.

Deputy Minister Lin said that all of the 80 sectors opened by the Mainland to Taiwan's service industry under the Cross-Strait Trade in Services Agreement exceed World Trade Organization commitment levels and cover industries of relative great importance to Taiwan, including the e-commerce, finance, cultural and creative, transport and logistics, construction, environmental protection, technical testing and analysis, health care and funeral service industries. The concessions pledged by the Mainland will improve conditions and further institutionalize rules for Taiwanese companies to enter the Mainland market and tap the vast opportunities there. The Agreement will not only be beneficial to the expansion of Taiwan's service market, but will also benefit operations of domestic small and medium businesses, and position Taiwanese brands and products more deeply into the Mainland market.

Deputy Minister Lin also made further explanations on doubts among certain sectors regarding the Cross-Strait Trade in Services Agreement, clarifying that the Agreement would not allow Mainland laborers to work in Taiwan, would not allow Mainlanders to immigrate to Taiwan through investment, and would not allow the Mainland taxi, publishing or Chinese herbal medicine retail industries to invest in Taiwan. Deputy Minister Lin emphasized that, facing an economy as large as the Mainland's, the government has been very careful during the negotiations process on the sectors to be opened by Taiwan to the Mainland. The government will certainly prepare relevant supporting defensive measures to safeguard Taiwan from being greatly affected by liberalization. Additionally, all Mainland investment cases will only be permitted after undergoing rigorous examination and screening by related government agencies.

Deputy Minister Lin pointed out that the service industry is one of Taiwan's competitive strengths. The signing of the Cross-Strait Trade in Services Agreement is an important indicator in the negotiation and signing of free trade or economic cooperation agreements between Taiwan and other countries or areas, and is vital to the next stage of Taiwan's economic development. The normalization of cross-strait economic and trade ties will enable Taiwan to take full advantage of mainland China's economic growth, while also pave the way for Taiwan's participation in the Trans-Pacific Partnership, Regional Comprehensive Economic Partnership and other regional economic integration pacts. Relevant competent authorities must also conduct impact assessments, propose concrete and comprehensive supporting measures, and formulate assistance and subsidy measures for industries that may be affected.

Scholars and experts from the Tainan area who attended the seminar took part enthusiastically in the exchange of views during the lively meeting. The participants felt that this face-to-face mutual communication was helpful in enhancing approval and support for the government’s Mainland policy.

Category

2013