| In recent years, the world is moving towards regional economic integration, based on the WTO web data, so far the world has more than 260 FTA effective operation of the mutual exemption of customs duties between parties. Taiwan's main economic rivals, have been actively supporting their countries signed FTA. For example:Japan has signed 11 FTA, and 8 agreements are being negotiating and evaluating. South Korea has signed six FTA, and 17 agreements are being negotiating and evaluating. China has signed nine FTA, and 14 agreements are being negotiating and evaluating. Among them, the ASEAN 10 plus Mainland China free trade area in this (99) years has been fully operated early this year, the impaction to the industry of Taiwan's will increase apparently, particularly in the upstream petrochemical, textile, exports of machinery and automobile parts will be influenced immediately. The impact may result in the relocation of domestic industries and the unemployment issue. Taiwan government must resolve this crisis immediately.Chinese mainland is Taiwan's most important areas of foreign investment, according to MOEA statistics, by the end of the 2009, total investment of Taiwan in the mainland was over more than 820 billion U.S. dollars. Accounting for the calendar year, the total amount of foreign investment was nearly 56.8 percent.Despite the growing cross-strait economic and trade exchanges are warming, but both sides are still lacking in many respects, such as the security system. The stability of cross-strait trade will be severely affected without a good system. Regarding this reason, "Jiang Chen talks" was held in China, and reached a consensus. In this meeting, they proposed a "cross-strait economic cooperation framework agreement", namely Economic Cooperation Framework Agreement, short name ECFA. If the two sides signed the ECFA finally, it will further promote the development of cross-strait economic and trade relations.The more positive purpose of ECFA is to institutionalize cross-strait economic and trade exchanges. The ground rules for Taiwan in cross-strait economic and trade activities will be stable and predictable, and help Taiwan increase its industrial competitiveness. The lower the relative costs of imports, for example, China import tariffs to zero, the more Chinese factories can import or purchase goods from Taiwan. At the same time, due to the better quality and lower costs, this improves the competitiveness of in Chinese market.Overall, if the two sides could sign the ECFA, it can build a stable cross-strait trade and economic cooperation framework, open cross-strait interaction mechanism; strengthen Taiwan's competitiveness in international markets, and promote Taiwan's economic stability and growth; push Taiwan into a global innovation center, and the Asia-Pacific business hub. Meanwhile, the development of Taiwan companies in China mainland is considerably helpful. I do hope the Economic Cooperation Framework Agreement to be signed soon. And I am very interested in the development of Taiwan companies in China, especially, the cosmetics companies how to develop in China. |
