The Director Of The Ministry Of Commerce, Taiwan, Hong Kong And Macau Interprets The Agreement On Trade In Services Across The Straits.

　 Q: what are the specific contents of the agreement?

Answer: the agreement contains texts and 2 annexes. The text includes preamble and 4 chapters and 24 articles. The 4 chapter is: General principles, obligations and norms, specific commitments, and other provisions; 24, the objectives, definitions, scope, fair treatment, information disclosure and provision, management practices, business conduct, emergency consultations, payments and transfers, ensuring external balance of payments constraints, exceptions, cooperation, market opening, other commitments, specific commitments, gradual reduction of trade restrictions, commitment form modification, linkage mechanism, deliberation, dispute resolution, document format, annex, amendment, and entry into force; 2 Annex: specific commitments for service trade, specific provisions on service providers.

Q: according to the agreement, what are the open commitments of both sides?

A: according to the appendix 1 "specific commitments form of trade in services", the two sides have 144 open commitments, involving more than 100 service industries, covering business, communications, construction, distribution, environment, health and society, tourism, entertainment culture, sports, transportation, and financial inclusion. Among them, the mainland has 80 commitments on opening up (65 commitments in the non-financial sector and 15 in the financial sector). It is further opening on the basis of the mainland's commitment to join the WTO; Taiwan has 64 open commitments (55 commitments in the non-financial sector and 9 in the financial sector), which is further opening up on the basis of Taiwan's opening of land capital to the island.

Q: what is unique about the agreement compared with other similar economic and trade agreements?

Answer: first, the level of openness is high and covers a wide range. The two sides have 144 open commitments, involving more than 100 service industries. Among them, the mainland has further opened up to Taiwan on the basis of its commitment to WTO, and has made 80 open commitments at a time.

The two is to highlight cross-strait characteristics. First, the two sides focus on the objective needs of the development of the service industry across the Straits, and make reasonable arrangements for the simultaneous normalization and liberalization. Secondly, the mainland fully understands Taiwan's economic and social status, and does not require Taiwan to open its professional field to the mainland. It shows the greatest sincerity and goodwill of the mainland.

Three, we should continue to promote mutual openness with existing mechanisms. In 2011, the first meeting of the Cross Strait Economic Cooperation Committee (hereinafter referred to as the Economic Cooperation Council) set up a working group on trade in services. Over the past two years, under the efforts of the working group on trade in services of the economic cooperation and Trade Commission, the two sides have actively promoted negotiations on the agreement and successfully signed the agreement. According to the agreement, the two sides can continue to promote mutual openness between the two sides through the working group on trade in services, and continuously enhance the overall level of the service industry across the Strait.

Q: the signing of the agreement will serve both sides of the Straits. Trade What is the significance of development and cooperation?

A: first, laying the foundation for the liberalization of trade in services between the two sides. After the signing of the agreement, the two sides will expand further in the more than 100 service sectors, including relaxing market access conditions, eliminating stock restrictions, relaxing business scope and operating areas, decentralization of examination and approval authority, and facilitating market access. The agreement also provides that the two sides can negotiate on the basis of mutual benefit for further market opening of trade in services. All these have laid the foundation for the two sides to gradually reduce or eliminate restrictive measures for trade in services covering many departments, and promote the liberalization of trade in services.

Second, help speed up both sides The service industry will integrate and complement each other to jointly enhance the international competitiveness of the service industry across the Straits. In Taiwan, the service sector accounted for about 72% of its GDP in 2012, and the proportion of the employed population also maintained nearly 60% for a long time, which is the core driving force for Taiwan's economic growth. In the mainland, in 2012, the service sector accounted for about 45% of GDP. The 12th Five-Year plan has promoted the great development of service industry as the strategic focus of the upgrading and upgrading of the industrial structure. After the signing of the agreement, the two sides will open the market to each other in the more than 100 service industries. The mainland has vast market resources, and Taiwan has advanced service management level. The mutual opening of the cross strait service industry is conducive to complementary advantages, sharing business opportunities and enhancing international competitiveness. It is a good thing for mutual benefit and win-win.

Third, it helps to expand the beneficiaries of the two sides of the Strait. Judging from the early implementation of ECFA, the agreement not only benefits both sides of the Strait, but also helps people enjoy more convenient and high-quality services. ECFA early harvest concessions only involve 20 service industries, but since its implementation in October 2010, 226 enterprises or institutions in Taiwan have benefited, and 82 mainland investment cases have been approved. The agreement will open wider markets on the basis of early harvest and provide greater concessions and convenience for cross-strait cooperation in service industry. This will undoubtedly further expand the beneficiaries of the two sides of the Strait and enhance the well-being of compatriots on both sides of the Strait.

　 Q: when will the open commitments of the agreement be implemented? Will the next step sign a supplementary agreement to further open the market?

A: according to the twenty-fourth provision of the agreement, the market opening commitments listed in the agreement will be implemented as soon as possible after the entry into force of the agreement. The Ministry of Commerce will introduce relevant supporting measures as soon as possible with the relevant competent departments.

The wide and extensive nature of service trade determines that its opening up can not be accomplished overnight. It is a gradual process. According to the sixteenth article of the agreement, the two sides will, on the basis of mutual benefit, conduct consultations on the further opening of trade in services on the basis of mutual benefit.

Q: how to deal with problems in the implementation of the agreement?

A: according to the agreement, the working group on trade in services of OECD will be responsible for handling the agreement and matters relating to trade in services, including coordinating and resolving problems arising from the implementation of the agreement.

In January 2011, the OECD was formally established under the framework of the ARATS and the Taiwan SEF, responsible for the implementation and consultation of ECFA and other matters related to ECFA. In the same year, the 2 menstrual meeting held its first regular meeting. At the meeting, 6 working groups were established, namely, cargo trade, service trade, investment, dispute resolution, industrial cooperation, customs cooperation, and the negotiation of ECFA follow-up agreement was officially launched. The Economic Cooperation Council has held 4 regular meetings so far, promoting the successful signing of the insurance agreement and service trade agreement between the two sides of the Strait, promoting the orderly negotiation of goods trade and dispute settlement agreement, and promoting the effective implementation of ECFA's early harvest plan and expanding the implementation effect.

　　 Q: how do we deal with disputes concerning the interpretation, implementation and application of the agreement?

A: at present, the two sides are consulting on ECFA and its subsequent agreements, including the dispute settlement procedures for the interpretation, implementation and application of the cross strait service trade agreement. Before the dispute settlement agreement is reached and entered into force, the dispute over the interpretation, implementation and application of this agreement can be resolved by consultation between the two parties or submitted to the working group of the economic cooperation and Trade Commission to solve it in an appropriate way.

　 Q: what is a certificate of service provider? Why do we need to apply for the certificate of service provider? Which enterprises need to handle? How to handle it?

Answer: "certificate of service provider" is actually the "certificate of origin" of service trade. It is a requirement to prevent the third party from hitchhiking and to examine the qualification of service providers, which is one of the general rules of service trade. According to annex two of the agreement, anyone who plans to take advantage of the preferential measures for exceeding the level of acceptance in the ECFA open commitments must apply for the certificate of service provider before the establishment of a business presence service provider. For example, if a mainland company plans to invest in Taiwan with a ECFA preferential measure and set up a commercial organization, which is beyond the level of Taiwan's WTO accession commitments, the mainland company needs to apply to the mainland authorities for a certificate of service provider. Specific application departments and application processes will be announced separately.

　　 Q: does the implementation of the agreement affect the early implementation of ECFA services trade?

Answer: it will not affect. The agreement is further open on the basis of the early harvest of ECFA services trade. The relevant regulations on cross strait trade in services in the agreement also apply to the early harvest and opening measures in ECFA services trade. In addition, according to the ECFA regulations, the definition of service providers specified in Annex five of ECFA will be terminated after the entry into force of the agreement. The early opening of ECFA services trade will apply to the specific provisions of the annex two to the service providers in this agreement.

　 Q: the seventeenth article of the agreement refers to the amendment of the commitment form, does it mean that the commitment form is uncertain?

Answer: No. First of all, the time to amend the commitment must be three years after the implementation of the commitment. Secondly, the commitment to the level of commitment below the commitment level of the commitment party can only be changed in a more open direction. It must not be revoked or restricted by the implementation period of three years. Once again, the notification procedure and the compensatory adjustment negotiation procedure must be carried out before modifying the commitment, which means that the amendment or withdrawal of the commitment form is not arbitrary.

　　 Q: can the service providers in the agreement receive " Cross strait insurance agreement "Protection of investors"?

A: according to the "cross strait insurance agreement", the object of protection is investors and their investments on both sides of the Taiwan Strait. Whether in agriculture, manufacturing or in the service sector, they are essentially funded in the form of commercial presence in the form of service provision provided by WTO, which can be protected by the relevant provisions of the insurance agreement between the two sides of the Taiwan Strait.

　 Q: how do we understand the provisions of the agreement concerning qualification requirements, qualification procedures and so on, which can not constitute unnecessary barriers to trade in services?

Answer: in order to standardize the management of industry and ensure the quality and level of service, there are corresponding professional qualifications and procedural requirements for both professional and technical service industries, such as construction, medical, accounting, finance and other industries. According to the agreement, this means that the standards and regulations on eligibility requirements and eligibility procedures must be open, objective, transparent and reasonable. The examination and approval department shall not take the qualification requirement or qualification procedure which the applicant can not afford as a reason for not approving it.