ECFA,the abbreviation of an accord called Economic Cooperation Framework Agreement,a FTA-like treaty between Taiwan and China.
Recently people talk about it a lot. After the Special Municipalities Election,one can regard the voters have okayed the Ma Administration's general policy,so it's worthy to look more into ECFA. It is one of the renowned reconciliation policies toward China,alongside with the direct flights across the Taiwan Straits and great lifts for Chinese tourists to Taiwan.
ECFA is an economic treaty that asks for both sides to open markets. By cutting customs tax to zero in several years,goods like chemicals,steel products,fishes and fruits can be sold to another market without tax,increasing the competativeness of the exporting nation.
There are some differences in the criterias that each side steps back and meets another in the half way. For instance,Taiwan lowers the taxes to zero for Chinese chemicals and some raw meterials. China would favor steel products,bicycle parts and machine parts with zero taxation. Generally,China is seen to "yield" Taiwan. Not only with more items imported from the counterpart granting zero tax than that of Taiwan,China also allows vital Taiwanese industries like Steel Making,Machinery and Financial Services to prosper in the middle kingdom.
But one might think of why. Why,would China do such a favor to Taiwan? And what would happen if China pull back from the treaty,when Taiwanese have got so used to it and have enjoyed the benefits so well of it ?
It's right to take hold of the momentum of a booming Chinese economy,that's why voters in this 2010 election chose the ruling party to govern three municipalities,compared with only two of the opposition party. But it's also why voters cast more ballots to the opposition by the sum of all electoral districts,for fear of an overly reliance to China.
