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Service pact poses
threats: lawmaker
COMPETITION: The pact is slated for signing on
Friday in Shanghai, but the government has not released a list of sectors that
will be affected, a TSU lawmaker said
By Chris Wang / Staff reporter
Taiwan Solidarity Union
Legislator Hsu Chung-hsin, second left, holds up a chart showing the potential
impact of a cross-strait service trade agreement with China during a press
conference at the Legislative Yuan in Taipei yesterday.
Photo: CNA
The impending signing of a service trade
agreement between Taiwan and China is an issue that merits concern, given the
opacity of the negotiation process and the long-term threat it poses on the
domestic service sector, Taiwan Solidarity Union Legislator Hsu Chung-hsin (³\©¾«H)
said yesterday.
The agreement ¡X a follow-up to the Economic Cooperation Framework Agreement (ECFA)
¡X is expected to be signed on Friday in Shanghai, but the government has yet to
disclose a list of items that will be liberalized, Hsu told a press conference.
Media reports that the hairdressing and beauty industry will be liberalized has
caused a panic among local businesses, Hsu said.
Adding the construction industry to the list would also jeopardize Taiwanese
control over local business with the easing of the 12 percent cap on Chinese
investment, he said.
The worst nightmare would be when the ECFA¡¦s 10-year transition period ends in
2020 and 32 service subsectors under WTO-regulated sectors, including
professional services, computer and related services, research and development
services, real-estate services and rental services, would have to be opened to
Chinese investment based on the principle of national treatment, which means
foreign and domestic businesses would be treated equally, Hsu said.
Hsu was also concerned that professional service providers, such as lawyers,
accountants and engineers, would eventually have to face competition from China.
In response, Construction and Planning Agency Deputy Director-General Tung
Chien-fei (µ£°·¸) said the government has set a ¡§three noes¡¨ policy to protect
local construction firms.
These are: Chinese construction companies will not be allowed to operate in
Taiwan; Chinese firms will not be allowed to bring in workers and equipment; and
the shareholding of Chinese investors in a Taiwanese construction company cannot
exceed that of the largest non-Chinese investor.
Hsu Chun-chin (®}±R´Ü), a section chief at the Bureau of Foreign Trade, said that
sectors which thrive on domestic consumption, such as the hairstyling and beauty
sector, are more likely to oppose market liberalization.
However, Hsu rebutted media reports, saying Chinese hairstylists would not be
brought in, but he declined to disclose the complete list of sectors that will
be eased, saying the agreement has not been signed.
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