The Chaiwan free trade deal moves that much closer to fruition
Tuesday, June 29, 2010 at 12:03AM
Thomas P.M. Barnett in Asian integration, China, Citation Post

The lastest on the deal's advance from the FT (6/14):

China and Taiwan have reached agreement on a wide-ranging trade deal that would be an important milestone for the warming of relations between the two cold war rivals.

The deal, called the Economic Co-operation Framework Agreement, or Ecfa, would also pave the way for Taiwan to join in the flurry of free trade deals being made by other Asian countries. China had previously blocked such efforts by Taiwan as it claims sovereignty over the democratically ruled island, but that opposition is expected to fade with the signing of the new agreement.

Without the opportunity to participate in trade deals, Ma Ying-jeou, Taiwan president, said last week that his country would be “sure to lag behind, to be forced out of the global economic sphere and to be marginalised”.

Negotiators from both sides said they had made key breakthroughs after a third round of talks held in Beijing on Sunday, particularly in the “early harvest list” of what sectors would be included in the initial round of opening. The contents of that list had been the main sticking pointin previous negotiations.

The breakthroughs allow the deal to be formally signed at the next semi-annual talks between the two sides. It also secures the centrepiece of Mr Ma’s policy of rapprochement with China, which is by far Taiwan’s biggest export market and where more than 1m Taiwanese already live and work.

The agreement, however, is facing strong political opposition within Taiwan, amid fears that economic integration could lead to political reunification and that the economic benefits of the deal will not be as great as Mr Ma has indicated.

My continuing point:  this is the third great member to join China's future Asian Union, after Macau and Hong Kong. Eventually, we are talking one Asia, many systems.

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