Freeman Report Sept 2010 -- vol. 8, no. 9

The signing of the Economic Cooperation Framework Agreement (ECFA) between Beijing and Taipei on June 29 was indeed a significant and concrete milestone in cross-Strait relations. It builds on a series of agreements that has rapidly expanded direct links and economic ties since President Ma Ying-jeou took office in May 2008. With the ratification of ECFA by Taiwan’s Legislative Yuan (LY) on August 17, implementation should begin within the next few months. Although an assessment of its impact cannot be made until further into 2011, most economists expect this free trade agreement (FTA ) to bolster two-way trade quickly, given an “early harvest” of tariff reductions for a wide range of products on both sides.

And although the specific impact on different sectors of the economy may not be uniformly positive, ECFA should help accelerate Taiwan’s overall economic growth in the coming years.