Taipei, Sept. 30 (CNA) Taiwan's top cross-Taiwan Strait affairs negotiator urged European businessmen Thursday to take advantage of warming Taiwan-China ties and enhance their economic relations with Taiwan but warned of difficulties ahead in cross-strait talks.
Speaking at a luncheon organized by the European Chamber of Commerce in Taipei with a theme titled "Trading with Taiwan after ECFA: Lessons from the EU's FTA with Korea, " Straits Exchange Foundation (SEF) Chairman Chiang Pin-kung said, however, that cross-strait negotiations on investment and trade in services will be difficult and there might not be enough time to complete agreements in these areas by the end of 2011.
The Economic Cooperation Framework Agreement (ECFA) signed June 29 to liberalize Taiwan-China trade relations will benefit Taiwanese businesses, as well as foreign businesses in Taiwan, with reduced tariffs and relaxed regulations, he said, adding that Taiwan and China are scheduled to begin negotiations on four follow-up agreements within six months.
However, agreement on the service sector is facing challenges from both sides of the strait, especially from the Chinese side, Chiang said. Agreement on investment is expected to be difficult as well, he continued, given that Taiwan allows only limited investment from China at present.
"With the complexity, combined with the political considerations of the upcoming presidential election campaign in the second part of next year, I'm not sure we can get those two agreements done by the end of next year, " he said.
"Agreements on investment protection and a mechanism for dispute settlements will be the easier ones (to negotiate), " he added.
Chiang also said that booming cross-strait tourism has contributed greatly to Taiwan's economy. As both sides continue to engage in economic talks, he said, increased direct flights, a streamlined visa application process and improved infrastructure in Taiwan will attract even more Chinese tourists in the future.
Guy Ledoux, head of the European Economic and Trade Office in Taipei, the EU's representative office in Taiwan, said on the same occasion that regardless of how Taiwan-China relations evolve, the European Union intends to boost its already "sound and thriving" economic ties with Taiwan, with various possibilities for trade enhancement.
Government procurement, implementation of international standards and investment will be the EU's three priorities in seeking closer cooperation with Taiwan, he said.
Ledoux also said that a large segment of EU-Taiwan trade will remain unaffected after the EU-South Korea free trade agreement is signed and takes effect, noting that 40 percent of Taiwan's exports to the EU consist of telecommunication and information technology products that already enjoy zero tariff treatment. (By Chris Wang) ENDITEM/J