The plans for an FTA with China raises strong opinions in Taiwan. The opposition is afraid that the country will need to bring in cheap goods from the mainland, and that the agreement is a first step towards reunification.
But this is not really the case according to President Ma Ying-jeou. Today, he assured that this is just an financial agreement that may contribute to opportunities for Taiwan. Through this financial agreement, the country may get the opportunity to be involved in free trade conversations with other countries.
In June, China and Taiwan are expected to sign a framework agreement on financial cooperation (ECFA), which would represent a rapprochement between the two political rivals.
This would be good for Taiwan as the country would get the chance to get closer to other countries. Today, the country is relatively isolated from the rest of the world and few companies and investors have chosen Taiwan as a base for international investments.
China believes that Taiwan is part of China, but in reality Taiwan has been independent since 1949. China has been highlighted in the media as a haven for international companies due to the cheap labor. However, Taiwan has not been given much focus since the country not has had the same opportunities for foreign and business establishments.
Today, only about 20 countries around the world have formal diplomatic relations with Taiwan. Therefore, this financial agreement may contribute to more opportunities for the future.
Cecilia Helland