Cross-Strait talks focus on free trade

Negotiators from the Chinese mainland and Taiwan agreed on Tuesday to discuss the Economic Cooperation Framework Agreement, also known as ECFA, in their next meeting in 2010.

The Economic Cooperation Framework Agreement is a free trade pact, under the framework of World Trade Organization. It is designed to tear down an array of tariffs on Taiwan's exports, the lifeblood of the island's economy.

Taiwan leader Ma Ying-jeou has been pushing for ECFA since taking office in 2008. When signed, the agreement would improve cross-strait relations while maximizing trade with the Chinese mainland.

Liu Bizhen, vice president of Chung-hua Institute for Economic Research,said, "ECFA will contribute to 1.65 percent to 1.72 percent of Taiwan's GDP, or a 5 percent increase in exports."

However, many in Taiwan are not very well informed about the free trade agreement and its potential benefits. The Democratic Progressive Party has launched demonstrations against the governing Kuomingtang party.

On December 11th, Ma Ying-jeou said he welcomed an open debate with leaders from the DPP and hoped to clarify the distorted facts of ECFA.