FACE TO FACE: Negotiators from the Association for Relations Across the Taiwan Straits and the Straits Exchange Foundation hold preliminary consultation in Fuzhou, Fujian Province, before top leaders of the two organizations met in December 2009 (ZHANG GUOJUN)

The mainland's Association for Relations Across the Taiwan Straits (ARATS) and Taiwan's Straits Exchange Foundation (SEF) signed the long-awaited Economic Cooperation Framework Agreement (ECFA) in southwest China's Chongqing on June 29.

The ECFA is a special arrangement for the normalization, institutionalization and liberalization of cross-Straits economic cooperative activities. Its signing is the result of the ever expanding trade exchanges between the mainland and Taiwan.

The idea of reaching a cross-Straits economic pact has been considered for a long time.

Early in January 2002, Vice Premier Qian Qichen talked about the idea of a regime for mainland-Taiwan economic cooperation for the first time at a meeting in commemoration of the seventh anniversary of President Jiang Zemin's speech, entitled "Continuing to Strive Toward the Reunification of China." In the speech Jiang put forward eight proposals on the development of relations between the two sides across the Taiwan Straits, also called "eight-point proposal."

In April 2005, Hu Jintao, General Secretary of the Communist Party of China Central Committee, and Lien Chan, Chairman of the Kuomintang in Taiwan, jointly issued the Common Aspiration and Prospects for Cross-Straits Peace and Development in Beijing. In the document, they proposed to jointly promote all-around economic exchanges between the mainland and Taiwan and establish a cross-Straits economic cooperation mechanism.

On December 31, 2008, Hu delivered a speech at a meeting in commemoration of the 30th anniversary of the Message to Compatriots in Taiwan issued by the Standing Committee of the National People's Congress in 1979, in which he expressed hopes for the normalization of cross-Straits economic ties and institutionalization of bilateral economic cooperation so as to consolidate the material basis for the peaceful development of relations across the Taiwan Straits and give it a more powerful economic influence. Hu said the mainland and Taiwan should talk about a comprehensive economic cooperation agreement to establish a cooperation mechanism, which would be complementary and mutually beneficial to both sides.

During an interview with Era News, a cable news channel operated by Era Television in Taiwan, on February 27, 2009, Taiwan leader Ma Ying-jeou said Taiwan would negotiate with the mainland to sign the ECFA. Since then, Taiwan authorities started making preparations for negotiations.

In December 2009, top leaders of the ARATS and the SEF held their fourth talks since June 2008 in Taichung, Taiwan, and exchanged views on negotiating and signing the ECFA. They also agreed to focus on the topic in their fifth talks scheduled for June 2010.

After the meeting, the two organizations conducted negotiations following the principle of, "easy things first, seeking common ground while reserving differences, proceeding in an orderly way step by step and advancing actively but reliably."

Experts from the ARATS and the SEF held the first round of talks on the ECFA in Beijing on January 26, 2010. The two sides exchanged ideas and reached consensus on topics including the name and basic structure of the agreement and the establishment of a negotiation mechanism.

A statement of the meeting said the two sides agreed that the ECFA will promote the mainland and Taiwan to deepen economic cooperation, jointly tackle the challenges brought about by the international financial crisis as well as fierce international economic competition and set up an economic cooperation mechanism of cross-Straits characteristics. The ECFA will benefit people on both sides, said the statement.

The second round of expert-level talks between the ARATS and the SEF was convened in Taoyuan County, Taiwan, from March 30 to April 1, 2010. The two sides exchanged views on the "early harvest program" on trade in goods and services, the basic text of the ECFA and arrangement for future consultations.

During their third round of talks held in June 2010 in Beijing, experts from the ARATS and SEF discussed the content and the five attachments of the ECFA—and made significant progress.

On June 29, 2010, ARATS President Chen Yunlin and SEF Chairman Chiang Pin-kung signed the ECFA in Chongqing during their fifth talks.

Recalling the negotiation process of the ECFA, Zheng Lizhong, ARATS' Executive Vice President, said in addition to the three rounds of expert-level talks, the ARATS and the SEF also held 10 consultations. "These consultations created records in terms of the number of departments involved, the wide range of topics covered, the complexity of the issues discussed, and the difficulty in coordinating the consultations," Zheng said.

ARATS and SEF Key Talks

Founded in 1991 and 1990, the Association for Relations Across the Taiwan Straits (ARATS) and the Straits Exchange Foundation (SEF) are authorized to handle cross-Straits affairs.

The main talks between the two organizations in the past were:

In November 1992, the ARATS and the SEF held talks in Hong Kong. The organizations reached what's called the "1992 Consensus." It states that both sides adhere to the one-China policy.

In April 1993, ARATS President Wang Daohan and SEF Chairman Koo Chen-fu held a historic "Wang-Koo meeting" in Singapore. It was the first public meeting between leaders of the two organizations. They signed four agreements on economic and trade cooperation.

From 1993 to 1998, the two organizations held more than 20 rounds of talks including one between Wang and Koo in Shanghai in 1998.

In 1999, negotiations between the two organizations were suspended because former Taiwan leader Lee Teng-hui began to pursue "Taiwan independence."

As of March 2008, cross-Straits relations began to improve. The ARATS and the SEF agreed to resume talks based on the "1992 Consensus."

From June 12-14, 2008, top leaders of the ARATS and the SEF held their first talks since 1999 in Beijing. ARATS President Chen Yunlin and SEF Chairman Chiang Pin-kung signed agreements on cross-Straits weekend charter flights and tourism.

On November 3, 2008, President Chen led an ARATS delegation to Taiwan for a five-day visit. In Taipei, Chen and Chiang signed four agreements on direct shipping, air transport, postal services and food safety.

On April 26, 2009, Chen and Chiang signed three agreements on opening regular flights, boosting cooperation in finance and cracking down on crime during their third talks in Nanjing, east China's Jiangsu Province. The two sides also reached a consensus to boost investment by mainland companies on the island.

On December 22, 2009, Chen and Chiang held their fourth talks in Taichung, Taiwan. They signed agreements on cooperation in farm produce quarantine and cross-Straits employment of fishermen, as well as to deal with different product quality standards.

On June 24, 2010, the two organizations held a preliminary consultation in Taipei. They agreed that the fifth talks between ARATS and SEF top leaders since the two organizations resumed talks in June 2008 would be held in Chongqing on June 29, during which the Economic Cooperation Framework Agreement (ECFA) and an agreement on intellectual property rights protection would be signed.

On June 29, 2010, Chen and Chiang signed the ECFA.

(Source: Xinhua News Agency)