Liu Danian: The Products In The Early Harvest List Will Be Tax Free For Three Years.

　　 Liu Danian said The Republic of Korea Regard mainland China as the ultimate market, while Taiwan regards the mainland as the world's factory.

　　 Taiwan Dr. Liu Danian, a researcher at the China Economic Research Institute: zero tariff on some commodities next year

Liu Danian said the products in the early harvest list will be divided into three years. duty-free 。 Before the formal negotiations between the two sides of the Straits, the think-tank on the two sides first contacted and communicated, and the think tank in Taiwan was the China Economic Research Institute. The China Economic Research Institute has participated in the issue, including economic experts, trade experts and legal experts.

In an interview with our newspaper reporter, Dr. Liu Danian, a researcher at the China Economic Research Institute, said that the think tank organization started six months of research on the market opening, service opening, trade rules, intellectual property rights and so on. "Both sides agree that signing a trade agreement is necessary, so we start comparing the trade structure of the two sides, which tariff is higher or lower, and what is the main product. Later, both sides agreed to adopt the model of the mainland China ASEAN, first sign a framework agreement, and then talk about it again. There is also an early checklist for the ECFA text, which is the same as the model of the mainland China ASEAN. Liu Danian said.

Liu Danian said that the promotion of the ECFA and the way of promoting the mainland China ASEAN mode are similar. The mainland believes that the promotion method is effective, and Taiwan also believes that stepping forward step by step is also good because there are some objections after all. "The two sides hit the nail on the head and started pushing. If one side does not want it, it will not work well. " Liu Danian told reporters.

　　 Similar to the mainland China ASEAN model

Taiwan exports a lot to the mainland, including petrochemicals, machinery, textiles, garments and other products. "The average tariff of industrial products on the mainland is 9%. Our trade with the mainland is very high, and we hope that the tariff can be reduced as fast as possible." The government has another consideration. In January 2010, the free trade agreement between China and ASEAN came into full force. ASEAN's products entered the mainland market without tariffs. We hope to win those products that will be hit first. This is the early harvest plan.

In fact, the early harvest plan is not unique to ECFA. There are similar arrangements between China and Pakistan, China and ASEAN.

Before providing early checklists, the think tank experts listened to the views of the business community and understood their position. "Some of course, of course, hope that the mainland can reduce tariffs and open them to them, because the mainland market is very large and everyone wants to sell it to the mainland, but they are worried that if their industry is to open to the mainland, what should they do?"

But some businessmen also said they were not worried. They thought the two sides were open and had no problems. When different sectors of the same industry disagree, experts from think tanks have to listen to the views of relevant industry associations.

　　 Taiwan fruit will be cheaper.

The electronic information industry, petrochemical industry and machinery are the three main products of Taiwan's exports. Since the tariff of electronic information industry is basically zero tariff, there is no question of negotiating tariff reductions. Therefore, petrochemical, machinery and textile and garment industries have naturally become the focus of think tanks.

Dr. Liu Danian said that because of the more agricultural problems in Taiwan, the open agriculture would cause many rebounding. Ma Ying-Jeou also explicitly stated that he did not open agriculture during the campaign. Therefore, when the two sides were in initial contact, Taiwan expressed their position of not opening the agriculture to the mainland. "My personal interpretation is that even if agriculture only opens one or a few, it will find an excuse for the DPP." Liu Danian said.

However, in the early checklist, the mainland exempted the tariff of 18 agricultural and fishery products such as pitaya, bananas, saury and grouper in Taiwan. "When mainland consumers buy Taiwan pitaya, the price will be cheaper. Taiwan farmers and fishermen have 18 agricultural and fishing products sold to the mainland, so the DPP has nothing to oppose. If the ECFA is not passed this year, it will be unfavourable to the Taiwanese. Liu Danian said.

In Liu Danian's view, Taiwan relies on exports. When the surrounding areas have signed free trade agreements, it is bound to be unfavorable for Taiwan's exports.

He also believes that Taiwan's business model is in urgent need of change. "Korea regards mainland China as the ultimate market, while Taiwan regards the mainland as the world's factory." Liu Danian said that South Korea has its own brand, but there are no brands in Taiwan. Take laptop as an example, 90% of the notebook computers in the world are produced by Taiwanese businessmen in Suzhou and Kunshan, but after the completion of Taiwan businessmen, they sell others' brands. Taiwan only makes things, doesn't sell things, Koreans make products and sell products, so the gap of brands appears, so Taiwan needs to change.

Apart from South Korea's industrial chain than Taiwan's high-end, South Korea's heavy industry foundation is better than Taiwan area. "Cars, steel and shipbuilding are all industries that Taiwan needs to strengthen. In the past decade or so, Taiwan has made little progress, and its industrial policies have not been worked out. Liu Da Nian, for example, said that when the Asian financial crisis happened in 1997, the average per capita income of South Korea was only 2/3 of that in Taiwan. But now, the per capita income of South Korea is higher than that of Taiwan.

　　 Taiwanese businessmen will increase investment in mainland China

After signing ECFA, it provides a window for Taiwan to enhance its competitiveness. "After signing the ECFA, South Korea and Japan are very nervous because this kind of cooperation between the two sides of the Strait will affect them." Liu Danian said. He believes that the current cross-strait relations are stable and the mainland's productive environment is good. Taiwan businessmen will certainly increase their investment in the mainland.

Liu Danian also told reporters that the products in the early harvest list will be tax-free for three years.

"In January 1st next year, tariffs on some of the products will be reduced to zero immediately. In January 1, 2012, the tariffs on some of the products dropped to zero. By January 1, 2013, the tariffs on all the products collected earlier were reduced to zero."