ECFA: A landmark cross-straits trade pact

A two-way trade agreement has also been discussed at this latest round of cross-straits talks. Both sides have talked about the launch of the Economic Cooperation Framework Agreement，although the ECFA is not officially on the agenda. CCTV reporter explains how signing this deal will benefit parties on both sides of the Straits.

The Economic Cooperation Framework Agreement is a landmark pact on trade between the Chinese mainland and Taiwan. The ECFA covers issues like tax cuts on commodities trade, service trade as well as investment.

It aims to promote normalization of cross strait economic and trade relations and to prevent Taiwan from being economically marginalized in Asia.

A new Asian free trade zone will be created on January 2010. It will include China and ten ASEAN member states. Taiwan is excluded, which is expected to have an impact on the island's exports and in turn the whole economy.

Experts say the signing of the ECFA will aid Taiwan's efforts to forge free trade agreements with ASEAN, the US and others.

Bih Jane Liu, Vice President of Chung-Hua Inst. for Economic Research said "The pact is expected to push up Taiwan's GDP by 1.65 to 1.72 percent. It will also drive up the island's exports by 5 percent."

Meanwhile, the global financial crisis has made the issue more urgent than ever for Taiwan, as local authorities are trying to stimulate the economy. Taiwan leader Ma Ying-jeou has been calling for an earlier conclusion to the ECFA talks and an inking of the deal.

The Chinese mainland has also been positive on this issue.

The current round of talks has seen the two sides agree to include the topic in the agenda of the fifth and next round of meetings.