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TAIPEI: The Chairman of the Straits Exchange Foundation (SEF) Chiang Pin-kung said yesterday that Taiwan should take greater initiative toward normalizing cross-Straits relations with the mainland. He cautioned that amid the current global trend of regional economic integration, failure on the part of Taiwan to take up the opportunity could end with the island becoming marginalized in the global arena.

Chiang made the remarks at the Cross-Straits Economic Cooperation and Exchange Forum in Taipei.

According to Chiang, Taiwan also should take the initiative to sign Free Trade Agreements (FTAs) with Asian economies in order to profit from the global trend of regional economic cooperation. The mainland, Japan and members of the Association of Southeast Asian Nations (ASEAN) are all important export markets, he said.

Chiang advised that Taiwan should especially enhance economic ties with the mainland through negotiations between the SEF and the Beijing-based Association for Relations Across the Taiwan Straits (ARATS).

"It is the most feasible approach to avoiding marginalization in the global market," he added.

Meanwhile, Tang Wei, a department chief of the mainland's Ministry of Commerce in charge of Taiwan, Hong Kong and Macao trade affairs, said both sides should remove all restrictive trade practices.

"A joint council especially for trade affairs should be established within the framework of the SEF and ARATS to identify and solve cross-Straits trade problems," Tang suggested.

Asked about the structure of a possible cross-Straits agreement to facilitate economic cooperation, Tang said the contents and principles of an FTA, a Comprehensive Economic Cooperation Agreement (CECA), and a Closer Economic Partnership Arrangement (CEPA) are basically the same.

The signing of any one of these three agreements between Taiwan and the mainland will allow the free flow of goods, services, and capital across the Taiwan Straits, Tang said.

The primary purpose of signing such an agreement would be to create prosperity on both sides, he added.

The SEF and ARATS are quasi-official organizations designated to handle cross-Straits matters in the absence of official ties.

CNA

(HK Edition 01/16/2009 page1)