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Jason Y Ng

As I see it | Why a little-understood trade agreement upsets so many in Taiwan

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Hundreds of police in riot gear clear the streets surrounding the government Cabinet buildings occupied by student protesters in Taipei, Taiwan. Photo: AP

They call it the Sunflower Revolution. Last Tuesday, scores of university students stormed into the legislature in Taipei and took over the premises. Their grievance? Kuomintang, the country’s ruling party, tried to ratify a controversial trade agreement with mainland China without proper review by lawmakers. A few days later, a smaller group raided the cabinet building but were later removed by riot police. In all, over 10,000 people participated in the largest student-led protest in the country’s 65-year history.

Things are relatively tame in the second largest city Kaohsiung. Around 200 people – students, taxi drivers, store owners and office workers – congregated outside Kuomintang’s local office on Jianguo First Road. That’s where my brothers and I found ourselves this Sunday. We took pictures with our big cameras and chanted slogans with the crowd. The organisers spotted us and invited their “supporters from Hong Kong” to say a few words on stage. We thanked them for asking but politely declined. We told them our Mandarin isn’t very good. In truth, we didn’t know enough about the trade pact to say anything intelligent.

As it turned out, neither do most people in Taiwan. False rumors about the trade pact abound. The fear that mainlanders will be allowed to buy their way into Taiwan, for instance, turned out to be misplaced. The agreement does not confer either citizenship or permanent residency. It all goes to show how little public discussion – and proper consultation – there has been over the agreement, which takes us back to what triggered the student protest in the first place: the government’s unilateral move to push through a contentious bill without a line-by-line review.

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So what’s this agreement and what’s in it?

Formally known as the Cross-Strait Service Trade Agreement (CSSTA), the pact was signed in Shanghai in June 2013. It is one of two major sequels (the other one being the not-yet-signed “Agreement on Trade in Goods”) to the high-level, largely symbolic Economic Cooperation Framework Agreement (ECFA) inked in 2010. CSSTA is all about opening up the service industry in both countries. It aims at creating cross-strait investment opportunities in dozens of service-related sectors (64 in Taiwan and 80 in China), such as banking, healthcare, tourism, films and telecommunications. Among other things, CSSTA will allow qualified professionals in mainland China to apply for short-term (three-year) visas to work in Taiwan, and vice versa. Mainland corporations, such as banks and mobile service providers, will be able to set up branches and offices in Taiwan or purchase stakes in Taiwanese companies within the permitted industries, and vice versa.
Police stand guard outside the Executive Yuan building as an ongoing sit in and protest against a trade agreement with mainland China continues at the nearby parliament in Taipei. Photo: AFP
Police stand guard outside the Executive Yuan building as an ongoing sit in and protest against a trade agreement with mainland China continues at the nearby parliament in Taipei. Photo: AFP

CSSTA is long on commitments but short on details. Exactly how many visas will be issued each year and what level of foreign investment is permitted will be the subject of further negotiations. Implementation is to be monitored and specifics are to be worked out in the years to come. So while CSSTA is a meatier follow-up to ECFA, there is still a way to go before the rubber actually hits the road.
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Neither the lack of understanding nor the lack of details about the trade pact, however, has stopped people from condemning it. It is so for two reasons. First, the public is offended by not so much what is in the agreement as the way their government has tried to pull a fast one on them. President Ma Ying-jeou’s attempt to slip the bill under the radar screen is just another confirmation that he is more concerned about salvaging his tattered legacy than looking out for his country. CSSTA was intended to be the stone that kills two political birds: on the one hand, it is a step closer to the economic integration that the China-friendly Ma has been engineering. On the other hand, it is a badly needed jolt to the languishing economy for which he is blamed. But everything has now backfired. The Sunflower Revolution has not only turned back the clock on cross-strait relations, but also taken a further toll on Ma’s dwindling popularity. His approval rating has been hovering at a pitiful 9%, the lowest among leaders in the developed world.

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