Delay of passing Service Pact will hurt Taiwan

The Cross-Strait Service Trade Agreement (CSSTA) is a trade pact between Taiwan and the Chinese mainland. The treaty would make businesses become easier to set up offices and branches in the other territory and for large stakes in businesses to be sold to the other party’s investors. According to China Daily,” the trade pact aims to open 80of the mainland service sectors and 64 Taiwan sectors to the mainland.” Both the mainland government and Taiwan government claimed that they hope CSSTA could be approved, because it’s a fair and win-win agreement negotiation for both side.

However, thousands of Taiwanese students occupied the top legislative body () for three weeks to protest the CSSTA. Firstly they worried that Taiwan’s economy will become highly dependent on the mainland if the pact is approved. Now mainland China accounts for more than 40%of Taiwan’s trade, and there is no reason for Taiwan to reject the agreement.

But the other reason for the students protesting was they considered the pact politically. Mainland China and Taiwan have different social and political systems, and some Taiwanese are afraid that they can’t maintain their lifestyle with the influenced of the mainland. So many Taiwanese prefer separation to cooperation.

Although the protest ended, lots of problems still exist. Many Taiwanese companies will lose the opportunity to enter mainland China if the agreement can’t be approved. What’s more, the Cross-Strait Goods Trade Agreement will also be set aside. The relationship between Taiwan and mainland China will get worse. Although lawmakers of Taiwan are having an item-by item review, some Taiwanese aren’t satisfied with the modifications. Under current conditions it is hard to approve the CSSTA in a short period time.

The CAATA isn’t important for just its immediate trade impact, but influences the upcoming Trade Pacts.

According to Taiwan’s Economics Minister, Chang Chia-juch said:” the proposed Trans-Pacific Partnership and Regional Comprehensive Economic Partnership’ will not wait for Taiwan.” the Trans-Pacific Partnership (TPP) is an organization among Brunei, Chile, New Zealand, and Singapore. Taiwan showed interest to join the TPP last year, if the CSSTA can’t be approved, then it means that Taiwan also will lose the chances to sign the pacts with the members in TPP or other countries. Even worse is the trust problem that will impede Taiwan to join the TPP. China is one of the members of the RCEP, so obviously it’s hard for Taiwan to join in if the Cross-Strait Service Trade Agreement and the Goods Trade Agreement can’t be approved. Other countries will be concerned about sign trade pact with Taiwan because they will be afraid that similar complains will be made by Taiwan.

Taiwan is a democratic country. The protesting is not the only way to show opinions. Mainland China is stilling waiting for Taiwan’s approval for the CSSTA. However, because of the interference of the protests, the agreement is at a deadlock. And the item-by-item review also didn’t bring any apparent affect. Due to the delay of approving the agreement, both Taiwan’s economy and further development will be injured negatively.

P.S all the underlines are from the references

ENDS

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