Government will scrap the ECFA if it is vetoed by the public in referendum

The government remains hopeful that it will sign an economic cooperation framework agreement (ECFA) with the mainland next month, "Minister of Economic Affairs" Shih Yen-shiang said Wednesday.

Shih told legislators during a meeting of the Legislative Yuan's Economics Committee that Taiwan has discussed the timetable with the mainland on some unofficial occasions, but he said it has not been finalized.

"Premier" Wu Den-yih said a day earlier that the agreement could be signed in the first half of June if the two sides were able to hammer out by late May the text of the agreement and the content of each side's "early harvest" list. That list will itemize goods and services that will become the first to enjoy tariff reductions or preferred market access under the deal.

According to Shih, financial services are among the "early harvest" items proposed by Taiwan, and he said authorities from the two sides have begun to discuss related issues.

In terms of goods, Taiwan hopes that machinery, petrochemicals and mid- and upper-stream textiles could be included, but there are still differences in this area that need to be resolved, Shih said.

As to whether automobiles and flat panels have been excluded from the list, Shih said the two sides are still discussing the automobile issue because it involves an international import quota.

As for flat panels, the products are not a priority item, but Taiwan will raise the issue with the mainland whenever there is an opportunity, he added.

After the April 25 debate between "President" Ma Ying-jeou and opposition Democratic Progressive Party Chairwoman Tsai Ing-wen, the results of various opinion surveys show that more than 50 percent of the public support the ECFA, Shih said.

He stressed that Taiwan has also continued to discuss the opportunity to sign free trade agreements with its other major trade partners, including the United States.

The economic affairs chief also confirmed the government would seek to terminate the ECFA with the mainland if the deal were vetoed by the people in a referendum.

According to Shih, if the ECFA were rejected in a referendum, it would mean that the agreement is invalid in Taiwan.

"We would then notify the mainland, in accordance with a 'termination clause', to have the agreement terminated within a certain period of time," Shih told legislators during a meeting of the Legislative Yuan's Economics Committee.

Shih said if the ECFA is signed in June as planned, the Executive Yuan will submit the agreement to the legislature for review in June or July.

Even after the agreement has obtained the legislature's endorsement, the people can still express their objections to it through a referendum, Shih said.

"We must respect public opinion. Referendums are one of the options available to the people," he said, stressing that the government would not agree to measures that harm Taiwan's interests, citing a recent statement by Ma that he would give up the ECFA if Taiwan's interests cannot be secured in the deal.

China Daily/CNA

(HK Edition 05/06/2010 page4)