Economic Cooperation Framework Agreement

Although the Taiwanese government has downplayed the impact of the ECFA cessation by saying the impact on the country`s trade revenues would be less than 5%, proponents of the pact believe it is essential to ensure Taiwan`s inclusion in the economic dialogue in the region, the UDN reported. The negotiation process took place in several cycles. As part of the 4th round of discussions on SEF-ARATS, held in December 2009, substantial but informal discussions were initially held on the ECFA. During this period, delegates for China and Taiwan set the framework for the first round of ECFA discussions[12] held in Beijing on January 26, 2010. Kao Koong-lian, Secretary General and Vice-President of the Straits Exchange Foundation (Sef), led the 13-member Taiwan delegation, while Zheng Lizhong, Vice President of the Association for Relations Across the Taiwan Straits (ARATS), represented China`s interests. [13] The subsequent ECFA discussions took place in Taipei on 31 March 2010 and in Beijing on 13 June 2010. [13] [14] The final agreement was signed during the 5th round of the SEF-ARATS talks on 29 June 2010 in Chongqing. [1] [15] Chiang Pin-kung, president of the Taiwanese SEF, represented Taiwan. [16] [17] Chen Yunlin, the president of ARATS, represented mainland China. [1] [18] Taiwan`s executive yuan approved the ECFA on July 2, 2010[19] and the Legislative Yuan (Parliament) approved the agreement on August 17, meaning that the agreement became law on January 1, 2011. [20] The ECFA came into force on September 12, 2010.

[21] The agreement does not have a formal extension period, but the language of the international trade agreement suggests that the creation of signatories does not take more than 10 years everywhere to establish customs union or free trade zones. Taiwan Bureau of Foreign Trade calls the idea of 10 years of non-commitment. The preferential trade agreement was signed in 2010 to reduce tariffs and barriers to trade between Taiwan and China. After the ECFA expired on Saturday, September 12, Taiwanese producers feared that there would be a negative effect if it ended. At a press conference, MAC confirmed that no changes had been made to any of the cross-border trade agreements. He stressed that the country`s scientists and entrepreneurs have advocated for the continuation of the ECFA, so that the government will respect public opinion and continue the current policy. The decline of the agreement would mark the largest cancellation of an agreement between China and Taiwan, which would be lapidary by the Taiwanese, who are part of a $149 billion trade relationship with China, and would cut one of the few strings of political relations between the two.