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TRADE WARS
Taiwan-China trade pact disappoints: report
by Staff Writers
Taipei (AFP) Oct 27, 2011

US to urge open markets on China trip
Washington (AFP) Oct 26, 2011 - The top US trade negotiator said Wednesday that he will head to China with the new commerce secretary to press for greater market access, calling for an even playing field for US businesses.

US Trade Representative Ron Kirk said that he and Commerce Secretary John Bryson will head to China shortly after the November 12-13 Asia-Pacific summit in Hawaii hosted by President Barack Obama.

During the annual dialogue with China known as the Joint Commission on Commerce and Trade, Kirk said he would press long-standing US charges that Beijing unfairly favors its state-owned enterprises.

"If we have full and unfettered access to China's market as their exporters do to ours, the economic impact to US businesses could be extraordinary," Kirk said at the US Chamber of Commerce.

"We will use and do use every opportunity we have to engage with China to ask China to do one simple thing -- live up to the commitments you made when we granted you permanent, normal trade relation status and invited you into the World Trade Organization," he said.

The US Congress in 2000 decided to give China normal trading status, ending often rancorous annual votes in which lawmakers scrutinized the growing Asian power's record on trade and human rights.

China regularly defends its record against US charges. While not mentioning the United States by name, Premier Wen Jiabao earlier this month warned that protectionism was rising and would slow down the troubled global economy.

The US Senate last week confirmed Bryson, a businessman, as commerce secretary to replace Gary Locke, who became ambassador to China.


A sweeping trade pact Taiwan signed with China last year has produced a smaller-than-expected boost to the island's exports, with growth slowing for key shipments, a report said Thursday.

Although the Economic Cooperation Framework Agreement (ECFA) reduced or removed tariffs on 539 Taiwanese products, exports of those items only rose 14.4 percent year-on-year to $11.87 billion between January and July.

The increase was a steep drop from a 42.0 percent annual rise for those products -- ranging from petrochemicals and auto parts to machinery -- in the same period of 2010, according to Taiwan's Business Weekly magazine.

"The growth of Taiwan's exports to China during the first year of ECFA was actually weaker then before," the magazine said.

The mass-circulation magazine's analysis of trade in the goods, which account for about 16 percent of the value of Taiwan's total China exports, form the most comprehensive public assessment yet of the trade deal's impact.

The steep increase in 2010 was a one-off, since the year saw a rebound from the global financial crisis, but even compared with the long-term trend, this year's data are disappointing, according to the magazine.

Exports of the 539 products rose by an average 17.5 percent annually for each of the years 2006 to 2008, it said, citing Chinese customs data.

The report pointed out that rival South Korea's exports to China of the same products rose 28.9 percent to $16.9 billion in the first seven months of 2011.

"The growth rate of South Korea's exports to China was twice that of Taiwan's, even without preferential tariffs," the magazine said.

"The weak industries are still weak... and the strong are always strong. Lowering tariffs is not the key to competitiveness."

Ties between Taipei and Beijing have improved markedly since Taiwan's President Ma Ying-jeou took office in 2008 on a platform of boosting trade and tourism with China.

However, Beijing still considers Taiwan part of its territory awaiting reunification, by force if necessary, after their split in 1949 following a civil war.

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China calls for trade pact with South Korea
Seoul (AFP) Oct 27, 2011 - Chinese Vice Premier Li Keqiang called Thursday for speedier efforts to reach a free trade agreement with South Korea, which has already signed deals with other world economic powers.

"We have to speed up efforts to conclude a free trade agreement," Li told representatives of the Federation of Korean Industries (FKI) and other business chiefs.

He said the two countries agreed on the need for such a deal and the foundations had been laid through years of research.

"A Sino-Korea FTA will help jointly cope with international economic risks and boost both countries' national welfare," Li said through a translator.

Li will oversee the world's second largest economy if he takes over as premier from Wen Jiabao in 2013, as expected.

China is South Korea's largest trading partner with annual two-way trade surging to $188.4 billion in 2010 from $6.3 billion when diplomatic relations were established in 1992, FKI chairman Huh Chang-Soo said at the meeting.

Huh called for more economic cooperation and personnel exchanges with China to expand trade and fuel growth.

The two countries have been holding preliminary talks to study the feasibility of a trade deal.

South Korea reportedly wants to delay opening its agricultural sector while China seeks to protect its petrochemical and auto sectors.

A state think tank, the Korea Institute for International Economic Policy, has estimated that a free trade deal with China would add 2.3 percentage points to South Korea's annual gross domestic product.

But such a deal is expected to meet strong resistance from South Korean farmers, fishermen and small businesses.

South Korea has signed free trade agreements with the European Union, the United States, India and the Association of Southeast Asian Nations, among others.

The US deal is awaiting parliamentary approval in Seoul following Washington's ratification this month.



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