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Govt ready to deal with the impact of ECFA: Ma

Updated: 2010-04-22 07:19

(HK Edition)

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Taiwan leader Ma Ying-jeou, who is also the chairman of Taiwan's ruling party Kuomintang (KMT), said Wednesday that the government has readied itself to deal with the impact of a planned trade pact with the mainland on local industry and workers.

To mitigate the possible negative effects of the cross-Straits economic cooperation framework agreement (ECFA) on some local industries and their workers, the government is planning to earmark a budget of NT$95 billion ($3.03 billion) over a 10-year period to serve that end, Ma told reporters after a weekly meeting of the KMT's policy-making Central Standing Committee.

Citing a study by the Chung-Hua Institution for Economic Research, Ma said the tariff-concession trade pact will, if signed, help create 260,000 jobs for Taiwanese workers, although it would also adversely affect some 80,000 people.

"This does not mean that 80,000 workers would lose their jobs, rather, it means that their salaries or benefits might contract," he explained.

According to an assessment made by the "Ministry of Economic Affairs" (MOEA), 17 traditional sectors, such as towels, garments, bedding and Chinese herbal medicine, would become vulnerable if the two sides ink the trade agreement, which aims to eliminate tariffs, he pointed out.

But Ma stressed that "there will be more advantages than disadvantages if the trade deal is put in place."

Should Taiwan fail to sign the ECFA with the mainland, a lot more companies would be forced to relocate elsewhere and more workers would lose their jobs," Ma said.

Taiwan and the mainland are slated to hold the next round of ECFA talks in May or June in Beijing. Both sides have reiterated their resolve to clinch the agreement, and the sooner, the better.

Also Wednesday, "Premier" Wu Den-yih reiterated that he will resign if Taiwan's unemployment rate remains above 5 percent by the end of this year.

In an interview with a cable TV station, Wu said he was serious when he pledged earlier this year that he would step down if the jobless rate remains higher than 5 percent at the end of 2010.

Asked how the Executive Yuan would achieve the goal after the unemployment rate rose to 5.67 percent in February, Wu said the increase resulted mainly from seasonal factors. Many people change jobs around the lunar new year holiday, he noted.

On the possibility that the jobless rate will surge to new highs this summer as new university graduates enter the job market for the first time, Wu said the Executive Yuan will make every possible effort to create new employment opportunities and help new graduates land jobs.

China Daily/CNA

(HK Edition 04/22/2010 page4)

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