Premier Sean Chen today commended representatives of Taiwan's Straits Exchange Foundation (SEF) for their persistence in reaching a favorable consensus regarding dispute settlement and the personal safety of businesspeople under an investment protection agreement signed with mainland China's Association for Relations Across the Taiwan Straits (ARATS) on August 9. The two sides also inked an agreement on customs cooperation during the August 8-9 talks in Taipei.
After being briefed by SEF delegates on the talks, the premier said the two accords symbolized deepening of economic cooperation across the strait, which will speed up negotiations on follow-up pacts to the Cross-Straits Economic Cooperation Framework Agreement (ECFA). Nevertheless, signing is only the first step in the process, he said, and the focus now is whether these two agreements can be effectively implemented. The premier urged ministries and agencies to put the accords into effect as quickly as possible and to activate relevant mechanisms so that people on both sides can soon feel the benefit.
Premier Chen said that the cross-strait Investment Protection and Promotion Agreement will provide stronger, comprehensive and institutionalized protection for investors. It is expected to enhance Taiwan's overall competitiveness by boosting cross-strait investment and attracting foreign investment to Taiwan. The agreement also contains a consensus on "personal safety and freedom protection," requiring authorities to notify family members when detaining businesspeople from each other's side.
The cross-strait Customs Cooperation Agreement, meanwhile, will expedite customs clearance and lower costs for enterprises while curbing smuggling, the premier elaborated. In addition to promoting and facilitating cross-strait trade in goods, the agreement should also help enhance the competitiveness of Taiwan's products and further expand the benefits of the ECFA early harvest program, he said.
As the ECFA has been signed and integrated into the global trade system, Chen said, Taiwan must shift the focus of cross-strait negotiations to dispute settlement mechanisms, trade in good and services, and the establishment of a free-trade agreement network. The premier instructed ministries and agencies to cooperate closely and plan meticulously and with foresight to bring maximum benefits to Taiwan.
The premier said the 18 pacts signed between the SEF and ARATS over the past four-plus years have fostered peaceful development of cross-strait relations by building co-prosperity and deepening mutual trust. Encouraging results have been seen in the protection of human rights on both sides, the establishment of procedures for conducting regular exchanges, as well as efforts to promote closer economic cooperation. However, the premier also pointed out that some areas covered by the agreements still await resolution, including the extradition of financial criminals and compensation for melamine contamination in food products.
Chen stressed the August 8-9 talks—the first in President Ma Ying-jeou's second term—maintained a steady focus on long-term cooperation but also reached a new plateau of development. Greater challenges lie ahead, he said, but as authorities on both sides become more knowledgeable about the technical details and policy objectives, the negotiations are expected to yield more successful results in the future.