JEAIL > Volume 4(1); 2011 > Regional Focus & Controversies
Research Paper
Published online: May 30, 2011
DOI: http://dx.doi.org/10.14330/jeail.2011.4.1.09

Interpreting the ECFA: A New Common Market for Taiwan and Mainland China?

Yen-Hsueh Lai
Soochow University, Taiwan
School of Law, Soochow University, 56, Kuei-yang St., Sec. 1, Taipei, Taiwan 100 R.O.C.
Corresponding Author: yhlai31746242@yahoo.com.cn

ⓒ Copyright YIJUN Institute of International Law
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Abstract

The ECFA was signed by Taiwan and Mainland China on June 29, 2010. It is Taiwan's new overall national economic policy calling for rapproachment with Mainland China. A primary purpose of this Agreement is to establish a quasi-national cross-strait common market within the framework of the WTO as well as to design the legal framework of bilateral economic cooperation. It is a course for the Chinese common market as the final economic integration. By its nature the current ECFA lies somewhat between a free trade agreement and a bilateral trade agreement within the framework of the WTO in the sector of trade in goods. Two parties have agreed on a new model of preferential treatment for goods exported from Taiwan to Mainland China. An agreed Early Harvest for Trade in Goods list is favourable for Taiwan, while an Early Harvest for Trade in Services list is balanced one for both parties. Other principles formulated by the ECFA are related to intellectual property rights and mutual investment. The success and failure of the ECFA will depend largely on the future cross-strait political atmosphere.

Keywords : ECFA, WTO, Early Harvest for Trade, Mutual Investment, Chinese Common Market

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