Abstract

Because cross-straits economic issues have been highly publicized, Taiwan, which has not yet fully fulfilled its WTO commitments, is now under pressure to shorten its timetable for liberalizing its markets following the signing of the ECFA. The number of Chinese products prohibited from import into Taiwan accounts for 20% of Taiwan's total import items. This indicates that cross-straits economic and trade relations are yet to be normalized. However, the ECFA is by definition more preferential than WTO MFN treatment.Taking the trade in goods as an example of further elaboration, when a prohibited item, under ”WTO-minus” provisions, become a legal import, its tariff level is reduced from the set tariff ceiling to MFN tariff rates. If it is included in the ECFA, a “WTO-plus” pact, the tariff rate is further cut to zero. That is to say, inclusion in the ECFA of items on the list of prohibited imports to Taiwan will deal a powerful blow to the Taiwanese economy, industry, and labor marketECFA is designed as a ” Framework Agreement” setting out the objectives and principles of the prospective negotiations plus ”Early Harvest Program” with a list of limited products to apply for preferential treatment So goes the argument that Taiwan might find it difficult to comply fully with the WTO rules imposed on developed members engaging in regional trade agreements, particularly the criteria of ” substantially all the trade” (SAT) in products originating in the partner 's territory since there is no ”plan and schedule” in the legal text of ECFA. Besides, it is therefore difficult to make a reliable assessment of economic impacts from ECFA because its contents remain open.

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