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Academic says that ECFA gives the edge
to Beijing
By Tzou Jing-wen
STAFF REPORTER
Monday, Jul 05, 2010, Page 3
Members of several pro-localization
organizations demonstrate against the Economic Cooperation Framework Agreement
outside the legislature yesterday.
PHOTO: LIAO CHEN-HUEI, TAIPEI TIMES
An industrial economics expert yesterday criticized government comments that the
cross-strait Economic Cooperation Framework Agreement (ECFA) would benefit the
grassroots, saying that Taiwan¡¦s ¡§early harvest¡¨ list under the ECFA was
problematic.
National Central University Institute of Industrial Economics professor Liu
Ching-lung (¼BÀAÀs) said he had found five serious problems after a closer look at
the 539 items on Taiwan¡¦s ¡§early harvest¡¨ list.
The list includes ¡§goods that export to China in small quantity,¡¨ ¡§goods that
import from China in small quantity,¡¨ ¡§Taiwanese goods that have great market
share in China,¡¨ ¡§goods that have been granted low import tax by China¡¨ and
¡§goods whose market has been dominated by Chinese exports.¡¨
While the administration of President Ma Ying-jeou (°¨^¤E) said the list would
spur Taiwanese exports, Liu said that China already dominates the market of up
to 225 items on the list, with their export volume reaching more than US$100
million last year. Liu said that China¡¦s export volume of 26 items on the list
had hit US$1 billion last year. In other words, Liu said, China not only
manufactures those products, but also enjoys a strong competitive advantage in
their export markets.
In terms of items that the Ma administration said would benefit local small and
medium-sized enterprises, Liu said that China¡¦s export volumes in three
bicycle-related products had reached US$1.4 billion, US$250 million and US$190
million respectively, and that China¡¦s export volumes of two kinds of automobile
parts had reached US$2.5 billion and US$1.73 billion.
The export volume of cotton towels from China had hit US$920 million, while the
export of other Chinese towels had reached US$990 million, Liu said, adding that
China¡¦s other items, including ovens, irons, toasters and golf products, also
enjoyed a competitive edge.
China has slowly dropped its policy of encouraging exports, Liu said, lifting
its export rebates and reevaluating the currency exchange rate.
Under these circumstance, Taiwanese businesses will find it difficult to compete
with their Chinese counterparts if Chinese products are sold to the domestic
market, Liu said.
Taiwan¡¦s small and medium-sized enterprises will not benefit from the tariff
breaks stipulated in the ECFA, while the Ma administration¡¦s promise to take
care of them is an empty promise, he said.
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