wfn.org | Taiwan Church News: Social organizations oppose signing economic agreement with China

["Lydia Ma" <enews@pctpress.org>]

>Taiwan Church News

>2976 Edition

>March 9~15, 2009

Social organizations oppose signing economic agreement with China

>Reported by Lin Yi-ying

>Written by Lydia Ma

In the past few months, the Ma administration has not stopped pushing  for an economic agreement with China under different names, such as  Comprehensive Economic Cooperation Agreement (CECA), Closer Economic  Partnership Agreement (CEPA), and Economic Cooperation Framework  Agreement (ECFA). The Ma administration claims that such an economic  agreement is completely unrelated to politics and will also save the  ailing Taiwanese economy.

However, according to Taiwan Think Tank CEO Chen Po-chih, all of these  economic agreements share one common goal: reunification with China.  Chen pointed out that ECFA (the latest economic agreement proposed by  the Ma administration) will do more harm than good for Taiwan. Not only  will the country lose its national autonomy, it will also be defenseless  against low-priced imports, tainted goods, and corrupt merchants.

Chen worries that signing such an agreement will also lure Taiwan into a  well-orchestrated trap set by China that uses business opportunities as  baits to quicken reunification and economic incentives for political  gain. He pointed out that some newspapers in the United States have  already analyzed why economic agreements will quicken reunification  between Taiwan and China.

Because the Ma administration’s China-leaning policies have  increasingly compromised Taiwanese political autonomy and economic  well-being, when Democratic Progressive Party (DPP) Chairwoman Tsai  Ing-wen visited Presbyterian Church in Taiwan headquarters office last  year, she urged General Secretary Andrew Chang to rally together social  organizations and political parties by studying current issues and  coming up with agreements.

Headed by Associate General Secretary Lyim Hong-tiong, the PCT held the  first session of “Taiwan Action Council” forum in October 2008  with the goal of opening up dialogue and creating solidarity to protect  the country.

The third session of the forum was held on March 6th and participants  included members from the DPP, Taiwan Nation Alliance, Taiwan  Association of University Professors, and more. Forum organizers asked  Taiwan Think Tank CEO Chen Po-chih to speak on the impact of signing  ECFA and how Taiwanese people should respond to this policy.

>Disadvantages overshadow benefits for ECFA

According to experts, farmers, medium-sized and small businesses will  lose out while capitalists will reap the most benefits if ECFA is  signed. “The Ma administration claims that signing ECFA is the only  way to save Taiwanese economy and decrease unemployment rate. This is  totally false and a lie to the Taiwanese because signing ECFA will  actually harm the national economy and lead to massive unemployment  among laborers”, said Taiwan Think Tank CEO Chen Po-chih.

Chen added that all trade liberalization agreements must be reciprocal.  Otherwise, when low-priced Chinese produce or products are sold in  Taiwan due to lack of anti-dumping regulation, Taiwanese farmers will be  the first to suffer. Following that, domestic sales will plummet and  more Taiwanese companies will be forced to close down. These problems  will cause another wave of massive unemployment, worsening the already  ailing Taiwanese economy.

In view of these negative consequences for laborers, farmers, and small  businesses, many wonder why business entrepreneurs have joined the  administration in supporting ECFA and have even claimed that without  such an agreement they will all lose their businesses. Chen explains  that many business entrepreneurs have big investments in China and trade  liberalization will facilitate moving more of their capital to China.  However, policies similar to ECFA will only aggravate economic woes for  Taiwan.

Since ECFA will harm farmers, laborers, medium-sized and small  businesses, why is the Ma administration promoting it and giving out  false information? Chen replied that the Ma administration has been  plagued with misguided economic policies since it took office. He also  lamented that local media outlets in Taiwan almost never report news  critical of the government. As a result, many people are misinformed  about the dangers of signing onto ECFA and it is imperative to get the  word out to the public immediately.

Signing ECFA at all cost is a prelude to reunification

According to experts at the meeting, the purpose of ECFA is for Taiwan  and China to give each other benefits that go beyond WTO. Though Taiwan  may reap a few benefits at the beginning, signing this agreement means  it will also be powerless to protect itself from the fallouts that will  come in due time. Furthermore, long-term over-reliance on China in the  economic sphere will render Taiwan powerless against China’s  reunification agenda.

Chen pointed out bluntly that all economic treaties have political  ramifications that will affect Taiwan’s political and economic  independence and to claim otherwise, as the Ma administration has done,  is to deceive oneself and the public. Furthermore, more than half of  Taiwan’s exports consist of electronics, which under WTO’s  Information Technology Agreement regulations are already exempt from  tariffs.

Other means to safeguard free trade for Taiwan

“Since the Ma administration claimed that signing ECFA with China  would ensure that Taiwan can sign a Free Trade Agreement (FTA), then, we  should focus on asking China to stop preventing Taiwan from entering  into FTA agreements instead. We should not be restricting ourselves by  signing ECFA because it will later prevent us from trading with other  countries as we wish,” said Chen.

Chen suggested the Ma administration to focus instead on convincing  China to let Taiwan become a member of “ASEAN Plus Three”, an  organization including ASEAN countries as well as China, Japan, and  South Korea. Taiwan should seek FTA with other countries at the same  time. After these two goals are reached, the country would be in a  better position to discuss ECFA if needed.

According to DPP delegate Chuang Shuo-han, the current situation in  Taiwan is dire because the Ma administration is keen on drawing Taiwan  closer to China. However, the DPP will continue to push for  accountability by insisting that treaties such as ECFA go through the  usual political process, which may include legislative scrutiny,  committee reports, referendum, etc.

Chuang also noted that even the head of Taiwan’s legislature,  Legislative Speaker Wang Jin-pying, has insisted on the importance of  setting up regulations to monitor treaties the Ma administration may  sign. He said Wang’s concern is a sign of the complexities and  dangers of signing ECFA and doing it without a mandate from the public.

According to reports, social and political organizations in Taiwan are  planning to organize mass rallies in May on issues such as ECFA and  unemployment. Rallies will likely be scheduled on Labor Day (May 1st)  and on the first anniversary of the Ma administration (May 20th).

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