A top Chinese official visiting Taiwan said China’s FTA with Korea will take effect within two years. The Chairman of the Association for Relations Across the Taiwan Straits (ARATS), Chen Deming, is on the second day of his visit to Taiwan.
China also recently signed an FTA with Australia and is working on many more FTAs. It is also involved in the Free Trade Area of the Asia-Pacific (FTAAP). Chen said that this free trade area could also include the Trans-Pacific Partnership (TPP) and Regional Comprehensive Economic Partnership (RCEP). The plan for the FTAAP will be out by 2016, and Chen said he hopes it will promote a global value chain where industries from around the globe work together.
When asked about the recent local elections in Taiwan, Chen said China does not comment on elections but is confident that they will not affect cross-strait ties.
Taiwan’s trade in services agreement is still stuck in the legislature pending the passing of an article to monitor cross-strait agreements. Chen said if the agreement has to be amended, it might leave Taiwan somewhat behind in global trade. He also said China was surprised the agreement has had problems in the legislature as, before the talks, Beijing was informed that both sides had the authority to sign the agreement.
China is also concerned the same scenario may occur with a cross-strait trade in goods agreement.