The Cross-Strait Economic Cooperation Framework Agreement (ECFA in English; the traditional Chinese version in Taiwan is called the Cross-Strait Economic Cooperation Framework Agreement) was originally called the Cross-Strait Comprehensive Economic Cooperation Agreement or the Cross-Strait Comprehensive Economic Cooperation Agreement (CECA in English, namely Comprehensive Economic Cooperation Agreement).
On January 26, 2010, the first ECFA expert working consultation was held in Beijing. On June 29, 2010, leaders of the two associations on both sides of the Taiwan Strait signed a cooperation agreement. On August 17, 2010, Taiwan’s legislature passed the Cross-Strait Economic Cooperation Framework Agreement. It is essentially a preliminary framework arrangement for negotiations on a free trade agreement between the two economies, while also containing a number of early harvest agreements.
The practical significance of ECFA:
The signing of the framework agreement between the two sides of the Taiwan Strait is the inevitable result of more than 30 years of mutually beneficial, complementary and interdependent development of cross-strait economic and trade exchanges. With the rapid development of economic globalization and regional economic integration, especially since May 2008, cross-strait relations have achieved a historic turning point. The two-way consultations that had been interrupted for nearly a decade have been resumed, and the comprehensive, direct and two-way "three links" across the Taiwan Strait have been basically realized. Cross-strait economic and trade exchanges and cooperation have become closer. Both sides of the strait have come to a common realization that the mainland and Taiwan, as important economic and trade partners of each other, should not stand out from the trend of global regional economic cooperation. The desire of compatriots on both sides of the strait to establish institutionalized economic cooperation is growing.
Features of ECFA:
The two sides signed the framework agreement with the aim of gradually reducing or eliminating trade and investment barriers between each other, creating a fair trade and investment environment, further enhancing the trade and investment relations between the two sides, and establishing a cooperation mechanism that is conducive to the common prosperity and development of the economies of both sides. Compared with other regional economic cooperation agreements, the framework agreement has the following characteristics:
First, the framework agreement is an economic cooperation agreement with distinct cross-strait characteristics. First, both sides focused on the overall interests of the two sides of the Taiwan Strait, and achieved the goals of shelving disputes, seeking common ground while reserving differences, pragmatic consultation, and reasonable arrangements; second, both sides focused on the needs of economic development on both sides of the Taiwan Strait, fully considered each other's concerns, and combined with the complementarity of industries on both sides of the Taiwan Strait to reach a large-scale and wide-coverage early harvest plan, so that the people on both sides of the Taiwan Strait can enjoy the benefits of trade liberalization as soon as possible; third, the mainland side fully understood the current economic and social status quo in Taiwan, focused on the long-term economic development of both sides of the Taiwan Strait, and did not involve issues such as Taiwan's vulnerable industries, the opening of agricultural products, and the transfer of mainland labor personnel to Taiwan, which reflected the mainland side's greatest sincerity and goodwill.
Second, the framework agreement is an open and gradual economic cooperation agreement. The framework agreement stipulates that the two sides will continue to negotiate and sign multiple individual agreements such as trade in goods, trade in services, and investment after the framework agreement comes into effect, gradually promote further openness between the two sides, and maximize the complementarity of the economic advantages of the two sides and achieve mutual benefit and win-win results.
Third, the framework agreement is a comprehensive and integrated economic cooperation agreement. The content of the framework agreement covers the main economic activities between the two sides of the Taiwan Strait and determines the basic structure and development plan for future cross-strait economic cooperation. The framework agreement focuses not only on the immediate economic benefits brought about by the signing of the agreement, but also on the improvement of the international competitiveness of industries on both sides of the Taiwan Strait. It also focuses on the long-term development of the economies on both sides of the Taiwan Strait and the well-being of the people on both sides of the Taiwan Strait.
The signing of the framework agreement has built an institutionalized platform for cross-strait economic cooperation, but this is only the beginning of cross-strait institutionalized cooperation. In the future, experts from the two sessions will complete the negotiation of each individual agreement as soon as possible in accordance with the provisions of the framework agreement, continuously enrich and improve the content of the framework agreement, and pragmatically promote the establishment of corresponding cooperation mechanisms in various fields between the two sides of the Taiwan Strait, so that the people on both sides of the Taiwan Strait can fully feel the benefits of freer and more convenient trade and investment.
This is the end of the introduction to ECFA in this issue. If you want to get more information about ECFA, please pay attention and we will continue to answer your questions~
