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TRADE WARS
Taiwan, China hold historic trade meeting

by Staff Writers
Chungli, Taiwan (AFP) Feb 22, 2011
Delegates from Taiwan and China met Tuesday to discuss issues arising from a sweeping trade pact that has set the stage for unprecedented economic interaction between the two sides.

It was the first meeting between Taipei and Beijing since the Economic Cooperation Committee was launched last month to address issues related to last year's Economic Cooperation Framework Agreement (ECFA).

During the committee's first meeting, held in northern Taiwan, the delegates agreed to set up six working groups and allow industrial and trade associations from both sides to exchange representative offices.

"The meeting was very fruitful," Liang Kuo-hsin, deputy economic minister and also the chief Taiwanese negotiator, told reporters at the end of the one-day gathering in Chungli.

"Today's discussions were largely aimed to set up a framework for the operation of the (committee)," he said, describing the atmosphere of the talks as "candid".

Taiwan and China have been governed separately since they split in 1949 at the end of a civil war, but Beijing considers the island part of its territory awaiting reunification, by force if necessary.

However amid warming ties, trade between Taiwan and China totalled $145.3 billion in 2010, up 36.9 percent from the previous year.

Members of three of the working groups -- related to goods, services and dispute settlement -- are expected to hold their first meeting next month, Liang said.

The other three will handle investment protection and cooperation on industry and customs.

Liang's counterpart Jiang Zengwei, China's deputy commerce minister, said exchanging liaison offices would help bring about normalised economic ties.

Liang said that investment protection would be on top of the agenda when chief negotiators from Taiwan and China meet later this year for a fresh round of discussions -- the seventh since they held a historic meeting in 2008.

Ties have improved markedly since Ma Ying-jeou of the China-friendly Kuomingtang party came to power in 2008 on promises to boost trade and allow in more Chinese tourists.



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