Friday, December 31, 2010
The Third United Front CCP-KMT-XIII
On 29 June 2010, Chiang Pin-kung, head of Taiwan delegation, and Chen Yunlin, the head of the mainland China delegation, signed the Economic Co-operation Framework Agreement (ECFA) in Chongqing, where Communist leader Mao Zedong and Nationalist leader Chiang Kai-shek tried to negotiate a united front against the Japanese during the second world war. The trade pact avoided using the words FTA (Free Trade Agreement) which might involve the sovereignty issue. The free-trade deal will remove tariffs for 539 products and services (worth $13.4 billion) of Taiwanese goods coming to China, while Chinese companies will get tax breaks on about 267 goods (worth $3 billion) to Taiwan (Mainichi Daily, Washington Post). The mainland China has made huge compromise for Taiwan including banking and agricultural sectors. ECFA has made both South Korea and Japan very nervous because neither has signed a FTA with China, which opened FTA deals with ASEAN this year. Taiwan will certainly provide advantages for Taiwan to access the ASEAN market and other Asian nation’s markets.