President Ma Ying-jeou met with Dr. Chi-Foon Chan, President and Chief Operating Officer of Synopsys, Inc., at the Presidential Office on the afternoon of August 19. During the meeting, Dr. Chan applauded the Legislative Yuan's screening and passage of the cross-strait Economic Cooperation Framework Agreement (ECFA).
President Ma commented that since the content of the ECFA was first announced in June, about 500 articles have appeared in the world press discussing the agreement, and almost all commentary has been very positive. He said that the ECFA is meaningful on many fronts. It will not only benefit companies from the United States, Europe, and Japan, but will also reduce the possibility of conflict between the two sides of the Taiwan Strait, which is highly beneficial for Taiwan’s industries. The president pointed to grouper fish as an example. He said that in the past, exports of the fish from Taiwan to mainland China had to first go through Hong Kong since there were no direct flights or shipping links between the two sides. Over the past three years, the volume of grouper sales has risen by a factor of 50, while the value of grouper sales has vaulted from NT$27 million to NT$1.4 billion. The president noted that at present, one fourth of the world's grouper is produced in Taiwan, equivalent to 58% of total output value for this fish. He said that grouper, which originally sold at a price of over NT$200 per kilo, is now sold in Shanghai for over NT$400 per kilo. In the future when tariffs are reduced by 10.5%, the sales of the fish are likely to be even stronger, he said.
President Ma said that while the two sides of the Taiwan Strait have different opinions on various issues, when negotiating on the ECFA they focused on common interests and shelved disputes. For example, the two sides are accustomed to using different Chinese terms for things like "framework," "consider," facilitation," and "goods." Ultimately, however, notes were added to all four copies of the agreement indicating that while the wording was not consistent, the meaning was. This highlights the efforts by both sides to seek common ground while respecting differences. President Ma also cited the example of machine tools, stressing that after the ECFA goes into effect, tariffs on these items will be abolished in two years. This is causing quite a bit of nervousness in Korea, which is Taiwan's main competitor in this industry, but at the same time, after the US-Korea Free Trade Agreement takes effect, traditional industries here with output of nearly NT$2 billion will be impacted. However, he said he is confident that the end result of these agreements will be greater market liberalization, which is conducive to competitiveness.
The president also said that currently the National Cultural Association is laying out plans to use cloud computing technology to develop a cross-strait dictionary. It will be published in electronic format, and a portion of the project is scheduled for completion next year, enabling the people from the two sides of the Taiwan Strait, which have been separated for 60 years, to be more familiar with the terminology used on either side.
Dr. Chan commented that in January of this year when he met with President Ma, he came to understand the importance of the ECFA. Despite the various challenges in implementing the agreement, he said the government has been able to overcome difficulties and get it signed. He said he is confident that in the future the agreement will help to facilitate trade between Taiwan and the rest of the world.
Dr. Chan was accompanied to the Presidential Office in the afternoon by Vice Minister of Economic Affairs Hwang Jung-chiou to meet President Ma. Also in attendance was Deputy Presidential Secretary-General Liu Bao-guey.