ECFA between Taiwan and China
Taiwan is a small opening economy country, which depends on the growth of the import and export trade. Therefore, the government tried so hard to join the global export market and participle in the WTO activities for several years. However, Taiwan had faced so many changes of economic trading environment in recent years, such as the “ASEAN (Association of Southeast Asian Nations)” which includes Brunei, Lao, Cambodia, Indonesia, Malaysia, Myanmar, Philippine, Singapore, Thailand and Vietnam, is sending the control power to China; the EU eastward expansion, etc. These district integrations had made great impacts on Taiwan’s exporting. Furthermore, there are a lot of small and medium enterprises in Taiwan; they are lacking of internationalizing ability to conduct a global deployment, so their main markets were concentrated on Mainland China and Southeast Asia., and the distribution strategy wasn’t enlarged to other regions. In addition, the domestic manufacturers are lacking of the possession of brand and marketing ability. It resulted in the investment inefficiency and, moreover, overseas investment wasn’t able to enhance the national competition. Therefore, there’s a way to solve these problems, and that’s ECFA. The ECFA, known as “Economic Cooperation Framework Agreement”, is an open-ended arrangement. Agreement has to be reached on Taiwan's petrochemical, automobile, textile and machinery exports shortly to avoid being heavily taxed in China, Japan, Korea, and the “ASEAN “. Being three of the biggest trading countries for Taiwan, especially China, our government is really trying hard to be part of the ECFA.
Why joining ECFA is so important for us Taiwanese
With the membership of ECFA, we could trade with other member countries and have very low customs duties, and it can even be zero! However, if you are not a member of EFCA, then we should pay...