Realize Free Trade & “Three Links” at a Quicker Pace

02-04-13 16:39　source:

　　 Wu Jiahuang, Vice Chairman, China WTO Studies Society

At the 2002 Forum on Cross-Strait Cooperation in Machinery & Electronics Sectors held yesterday, Mr. Wu Jiahuang, Vice Chairman of China WTO Studies Society spoke out for a quicker realization of free trade and “three links” between the mainland and Taiwan. He said:

I was a representative for negotiations over China’s WTO membership. I was involved in the negotiation process for 13 years. I’m convinced that multilateral trade will benefit both sides of the Taiwan Strait. Although opening the market will cause considerable impact on the domestic market, as a WTO member, we can set about improving our living standards and realizing full employment. We have every reason to believe that there are mutual benefits for both sides of the Taiwan Strait within the WTO structural framework.

We are already considerably involved in economic globalization. Taiwan is taking advantage of the mainland’s cheap labor for processing trade. Their products are exported to many different countries in the world. This is also part of economic globalization. We need to seize the opportunity to integrate our economy into the globalization, actively participate in multilateral negotiations in the WTO, strive for our best interests in trade, and improve the existing rules.

The respective entries of the mainland and Taiwan into the WTO presentunique opportunity for both sides to further develop their economic and trade relations and to achieve “three links” (commercial, postal and shipping links) eventually. The mainland suffers a huge trade deficit in imports and exports with Taiwan. This means that the mainland is open while the other side is not. Because of various factors, the economic and trade relationship across the Taiwan Strait is characterized by processing trade. Taiwan transfers parts and components to the mainland. Labor price in the mainland stands at a mere 1/10 of that of Taiwan. The combination of Taiwan’s parts and components with the mainland’s labor will result in premium products for the entire world.

Since both sides are now members of the WTO, we should quicken our pace for achieving free trade and “three links”. This is also my wish as an old man.