#cssta

[hizailin]

CSSTA Pros & Cons

Pros:

Some politicians and businessmen of Taiwan hold positive perspective to CSSTA. They advocate that CSSTA is beneficial to Taiwan because the industrial subjects that China offer are more open than the level that WTO’s agreement does. Also, allowing Chinese corporations and entrepreneur to come to Taiwan contributes to increasing job opportunity in Taiwan, improving labor condition, situation and payment, generating a healthy competition. It’s an opportunity to start free trade by allowing the Taiwanese corporations to deploy service industry in China. (“海峽兩岸服務貿易協議,” n.d.)

Cons:

The major voice of objective toward CSSTA mostly concern that Chinese investments might lead to the price escalation of real estate and make Taiwan the next Hong Kong. Other concerns including people are worried that management echelon will occupied by Chinese, students facing graduation think CSSTA will heighten the threshold of their future opportunity to create their own business, printing industry, distribution industry, and storage industry think that they won’t be able to survive in the price cutting competition with China, many other industry also worry about they might lost their job. Some voices indicate that Chinese might take their family to Taiwan for a long stay, which will severely increase the disparity between rich and poor. (“海峽兩岸服務貿易協議,” n.d.)

Reference:

海峽兩岸服務貿易協議. (2015, January 27). In 維基百科，自由的百科全書. Retrieved from http://zh.wikipedia.org/w/index.php?title=%E6%B5%B7%E5%B3%BD%E5%85%A9%E5%B2%B8%E6%9C%8D%E5%8B%99%E8%B2%BF%E6%98%93%E5%8D%94%E8%AD%B0&oldid=34114784

[hizailin]

What is CSSTA?

Cross-Strait Service Trade Agreement is one of the agreements under the structure of Economic Cooperation Framework Agreement (ECFA). ECFA includes Economic Cooperation (signed 6/29/2010), Investment Protection (signed 8/9/2012), Trade in Services (signed 6/21/2013), Dispute Settlement (scheduled), and Trade in Goods (discussing, estimated completing the negotiation in 2013). (鄭秀玲, n.d.)

According to the regulation of WTO’s General Agreement on Trade in Service (GATS), service has divided into four models:

Cross-border supply: the possibility for non-resident service suppliers to supply services cross-border into the Member's territory.

Consumption abroad: the freedom for the Member's residents to purchase services in the territory of another Member.

Commercial presence: the opportunities for foreign service suppliers to establish, operate or expand a commercial presence in the Member's territory, such as a branch, agency, or wholly-owned subsidiary. For example, Taiwan allows Chinese service provider to establish business stronghold in Taiwan with all kinds of format such as exclusive investment, joint venture, partnership, or establish branch offices.

Presence of natural persons: the possibilities offered for the entry and temporary stay in the Member's territory of foreign individuals in order to supply a service. (鄭秀玲, n.d.)

Reference:

鄭秀玲. (12:27:45 UTC). 兩岸服貿協議對我國的衝擊分析. Retrieved from http://www.slideshare.net/hungchengtu/ss-24730814?related=1

[hizailin]

Three points among free trade agreement: First, any trade agreement has to be symmetrical. Second, no trade agreement should put commercial interests ahead of broader national interests. Finally, there must be commitment to transparency.

Joseph Stiglitz, Nobel Laureate in Economics (2013)

Professor Show-Ling Jang indicates that CSSTA doesn’t match those three points that Stiglitz suggests. As a result, Professor Jang recommends that Taiwanese people should think twice before making the final decision.

The clause, the economic scales, and the freedom environments of two sides are not in equal status.

The administrator who signed the agreement neglected his own duty. Taiwan’s economy, society and homeland safety have been in danger.

Only 18 civil servants at the basic level were in charge with the negotiation process. The process was lack of conversation between government departments and relevant industry. (鄭秀玲, n.d.)

Reference:

鄭秀玲. (12:27:45 UTC). 兩岸服貿協議對我國的衝擊分析. Retrieved from http://www.slideshare.net/hungchengtu/ss-24730814?related=1

Stiglitz, J. (2013). So-called free trade talks should be in the public, not corporate interest | Joseph Stiglitz. Retrieved February 13, 2015, from http://www.theguardian.com/business/economics-blog/2013/jul/05/free-trade-talks-public-corporate-interest

[lettersfromtaiwan]

[lettersfromtaiwan]

Taipei Times cartoon absolutely nails one of the main reasons why many Taiwanese are disappointed with the Ma Administration's cross-strait policies - over-stated benefits of agreements that did not deliver on promised returns.  Although the CSSTA and CSTGA are technically parts of ECFA, public trust and faith in the Government had already been eroded by the time the Government presented the black-box negotiated CSSTA as a fait accompli to the Legislative Yuan, sparking the historic Sunflower Movement protests that arguably defined the beginning of a new era in Taiwanese politics.  

[lettersfromtaiwan]

Taipei Times cartoon on the economic asymmetry of the Cross-Strait Service Trade Agreement (CSSTA).

[lettersfromtaiwan]

Taipei Times cartoon depicting the Wall Street Journal as a cheerleader for trade agreements which would eat up Taiwan's economy.

[lettersfromtaiwan]

MAC to Clinton: Please Kindly STFU

So a few days ago, Hillary Clinton made some comments about the danger of Taiwan's economic dependence on China.  In response, Taiwan's Mainland Affairs Council tartly responded with a raft of propaganda that more or less told her to mind her own business:

The ROC Mainland Affairs Council (MAC) released the following written statement June 24 in response to comments by former U.S. Secretary of State Hillary Clinton in an interview with Taipei-based Business Weekly:

Written response from the Mainland Affairs Council, Executive Yuan

In her interview with Business Weekly, Clinton said the ever closer relations between Taiwan and mainland China are now at a turning point. While she commended Taiwan on its past performance in handling cross-strait relations, she added that now “you have to evaluate how far you can go before you lose your economic independence, because it will affect your political independence.”

With regard to these comments, MAC wishes to make the following points:

(1) Since taking office in 2008, President Ma Ying-jeou has made it a priority in dealing with mainland China to address pressing issues before less urgent ones, easy ones before difficult ones and economic ones before political ones. In this way cross-strait relations have been developing at an appropriate pace, without overreliance on mainland China or any effects on the economic or political independence of the ROC.

(2) In a MAC survey released in March, a majority of respondents—44.8 percent—said cross-strait ties are proceeding at the right speed, compared to 31.3 percent who felt that they are progressing too fast and 14.2 percent who considered the tempo too slow. This shows that a majority of people in Taiwan approve of the government’s approach and pacing with regard to exchanges with mainland China.

(3) When the Democratic Progressive Party was in power from 2000 to 2008, mainland China became Taiwan’s leading trading partner and largest export destination. Taiwan’s exports across the strait grew from 24 percent in 2000 to 40 percent in 2008. In the six years of the current administration, Taiwan’s export markets have been diversified, so although exports to mainland China have increased in volume, their share of total exports has dropped one percentage point to 39 percent. Dependence on mainland China has thus decreased, and Taiwan has not put all its eggs in one basket.

(4) The ROC is a sovereign nation in which freedom, democracy, human rights, and the rule of law have become core values. The people of Taiwan are self-governing and elect their president and legislators in a mature democratic system. In the past six years, cross-strait relations have moved from tense confrontation to peaceful rapprochement, progress which has been applauded by the people of both sides as well as the international community. Cross-strait ties have also had a beneficial effect on political and social developments in mainland China, contributing greatly to cross-strait peace and prosperity. The MAC thanks former Secretary of State Clinton for her reminder and suggestions.

Foreign Press Liaison Office, Ministry of Foreign Affairs, Republic of China (Taiwan)

LOL, well first of all MAC surveys are two a penny and the Ministry pulls one out of its hat every time it needs to show 'poll figures' support its position.  Who can forget the farce of then Premier Wu Den-yih saying ECFA would not be passed until it had 60% public support, a firm statement of resolve shortly followed by the MAC releasing a poll showing, magically, about exactly 60% support.  Let's compare the MAC poll with one released yesterday showing something different:

... most [TAIWANESE] are still doubtful about deepening economic interaction with China, a poll conducted by the Grassroots Influence Foundation showed.

According to the results released by the foundation yesterday, as many as 75.89 percent of respondents support further economic liberalization and globalization, while 51.22 percent said that they understand the proposed cross-strait service trade agreement to some extent.

However, when asked about their attitudes on the cross-strait service trade agreement, as many as 51.33 percent of those who support economic liberalization said they are opposed to the pact, while 87.5 percent of those opposing economic liberalization were against it.

Meanwhile, about 53 percent of those who said they understand the service trade agreement are opposed to it.

Let's remember that the CSSTA is part of Ma's flagship ECFA agreement, which itself is a barometer of how Taiwanese feel about progressing cross-strait ties.  One of the Government's most common retorts to critics of the CSSTA is that they just don't understand it well enough ("Thank you for your comment. You must study harder").  Well it seems that this polls suggests that those who claim to understand the pact are opposed to it, even those that support 'economic liberalisation'. I guess the Government will just say in response that the fact that they are opposed to it means they don't understand it. What fun!