March 22, 2014 -- (1) The government of the Republic of China affirms the concern shown by students and the general public for national affairs, specifically, the Cross-Strait Agreement on Trade in Services (TiSA), while calling for the expression of opinions through rational, peaceful and democratic means. The government is willing to engage in democratic, rational dialogue with all who hold differing views, but cannot endorse the student occupation of the legislative chamber in a demand for dialogue. Nor can the government accept the students’ preconditions for dialogue—withdrawal of the TiSA and passage by the Legislative Yuan of an act providing oversight of cross-strait negotiations.
(2) The ROC is a democratic nation governed by the rule of law. The TiSA is now under review by the Legislative Yuan. The differing opinions of the ruling and opposition parties, as well as of different sectors of society, should be worked out through the normal legislative procedures of the independent Legislative Yuan, until consensus is reached. As the present controversy over the TiSA stems from a procedural dispute between the ruling and opposition party caucuses, the key to its resolution is the prompt reinstatement of legislative operations and guarantee of constitutional order. The Legislative Yuan’s internal negotiation mechanism can bring the dispute to a peaceful end. The results of legislative review are not something that the president or Executive Yuan can control.
(3)The review process for the TiSA is not a “black box operation.” Since the pact was signed in June 2013, the Legislative Yuan has held 20 public hearings on it. The Ministry of Economic Affairs, Mainland Affairs Council and related agencies have jointly organized over 110 forums with 46 industries, and relevant agencies have briefed the Legislative Yuan three times.
(4) The TiSA is not an “unequal agreement.” In the pact, mainland China allows Taiwan access to 80 subsectors, compared to 64 in Taiwan for mainland China—many of which were in substance opened already. Moreover, Taiwan will enjoy more favorable access to the mainland market than other World Trade Organization members, but none of the subsectors opened to mainland China will exceed WTO standards.
(5) The TiSA will not open Taiwan to mainland Chinese workers, and will not change immigration policies with regard to mainland Chinese. The pact will create 12,000 jobs for Taiwanese people, boost our GDP and industrial competitiveness, and contribute to the country’s liberalization and internationalization. On the whole, the agreement does more good than harm, and is crucial to the country’s future economic development.
(6) If the TiSA cannot be passed and thus come into force, the three major repercussions will be: Taiwan’s service industries will lose the advantage of early entry to the mainland Chinese market; Taiwan’s accession to regional economic integration mechanisms—including the Trans-Pacific Partnership (TPP) and Regional Comprehensive Economic Partnership (RCEP)—will be delayed; and future talks with mainland China under the Cross-Straits Economic Cooperation Framework Agreement (ECFA) on a trade in goods agreement and dispute settlement mechanism will be influenced, which will jeopardize the development of Taiwan’s external trade.
(7) Opposition to the TiSA is based on misrepresentations of fact.
1. A rumor to the effect that one mainland Chinese investor could apply to bring 45 employees to Taiwan: Under the TiSA, when a mainland Chinese enterprise invests US$200,000 or more, it can apply to bring in two employees to manage its interests in Taiwan; with investment of US$500,000 and above, one more employee may be brought in, with an upper limit of seven. Even if investment exceeds US$3.3 million, only the individual investor will be allowed in as chief executive. The rumor that one investor could bring in 45 people is a misrepresentation of the facts.
2. A rumor that mainland Chinese company officials and their families could obtain long-term residence in Taiwan: Under the pact, officials or technical specialists of mainland Chinese enterprises in their first year in Taiwan could in principle receive only a multiple re-entry permit valid for one year. Starting from the second year, the firm’s business volume would have to reach NT$10 million (US$326,279) before the employee could apply for a new re-entry permit. The government has not given mainland Chinese investors, company officials or technical specialists unlimited entry permits, nor has it permitted their long-term residence.
3. A rumor that the TiSA will lead to widespread unemployment: As of the end of January 2014, the government had approved 495 mainland Chinese investment cases, with investment of US$870 million. The mainland company officials, specialists and family members who have come to Taiwan in association with these cases number just 264, while these firms have provided jobs for 9,624 Taiwanese. It is evident that mainland Chinese investment not only brings in capital for our industries and financial market, but also creates jobs for our people.
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