Taiwan leader: Trade pact with mainland crucial

Taiwan's leader Ma Ying-jeou has said that the island needs a proposed trade pact with the mainland. He said the Economic Cooperation and Framework Agreement would help the island increase jobs and its competitiveness.

Ma Ying-jeou said he hopes to build the island into an investment hub, that can host the regional headquarters of local and multinational businesses.

During a press conference aimed at boosting support, Ma said the goals would be more attainable once the agreement is signed.

Ma said the Economic Cooperation and Framework Agreement would create 260 thousand jobs for the island and increase its gross domestic product by up to 1.7 percent.

A report released late last year by the local labor authority warned that 47 thousand Taiwan workers would lose their jobs if the pact was not signed.

A survey in Taiwan shows that 56 percent of the public support the pact, with less than a fifth opposing it.

The agreement would allow cross-strait traders to enjoy zero customs. Currently, Taiwan exporters have to pay 5 to 19 percent duties when selling goods to the mainland.

In 2000, 24 percent of Taiwan's exports went to the Chinese mainland, but last year that figure rose to 41 percent, showing growing economic cooperation and integration across the strait.