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TRADE WARS
Taiwan opposition renews boycott of China trade pact

China pact to lure major foreign firms to Taiwan: premier
Taipei (AFP) June 15, 2010 - Taiwan will attract more international investors with a major trade pact with China, the island's premier said Tuesday, as the two sides worked to seal the deal this month. "Many foreign companies have voiced their support for ECFA and said it will increase their confidence to set up factories in Taiwan," Wu Den-yih told reporters. "Our ultimate goal (with signing the Economic Cooperation Framework Agreement with China) is to attract global funds and talent and have them establish operations centres in Taiwan," he added.

Wu declined to confirm Taiwanese reports that German car maker Volkswagen AG is considering investing at least a billion Taiwan dollars (30 million US) in a new plant on the island, saying only that "many companies have inquired". Taiwan and China made "substantial progress" during negotiations on Sunday for the pact, according to Taiwan's quasi-official Straits Exchange Foundation. Further discussions will still be required, the foundation said, adding it hoped the deal can be signed when top envoys from the two sides -- Chiang Pin-kung and his Chinese counterpart Chen Yunlin -- meet at a date not yet set.

Taiwan's Beijing-friendly government, which says the deal will boost growth and employment, has been pushing to sign the agreement in June. But opponents of the pact in Taiwan say stronger competition from China will cost jobs and the accord will make the island more dependent on the mainland. Taiwan and China have been governed separately since a civil war ended in 1949, but Beijing considers the island part of its territory and has vowed to get it back, by force if necessary.
by Staff Writers
Taipei (AFP) June 15, 2010
Taiwan's main opposition on Tuesday renewed its pledge to boycott a planned trade pact with China after government officials refused to provide details of the agreement.

Negotiators from Taiwan and China said they made "substantial progress" during the third round of negotiations held in Beijing Sunday for the trade pact, known as the "Economic Cooperation Framework Agreement."

Government officials sought the support of legislators in a closed-door briefing to parliament, hoping to seal the agreement before the end of this month, as scheduled.

But lawmakers from the pro-independence Democratic Progressive Party (DPP) decided to pull out of the briefing after officials refused to give details of the items to be granted preferential tariffs.

"They were supposed to give the list, which we deem as very important because it will have far-reaching negative impacts on Taiwan's economy," DPP legislator Lee Chun-yi told reporters.

"But they did not. This is outrageous. They showed no respect to parliament... we urge Taiwan people to stand up to oppose the agreement."

The DPP has called a mass rally on June 26 to protest against the trade pact that it also says will weaken the island.

Taiwan's Beijing-friendly government, which says the deal will boost growth and employment, has been pushing to sign the agreement in June.

But opponents of the pact in Taiwan say stronger competition from China will cost jobs and the accord will make the island more dependent on the mainland.

Taiwan and China have been governed separately since a civil war in 1949, but Beijing considers the island part of its territory and has vowed to get it back, by force if necessary.



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