Meeting Schedule

1. Negotiations
From 3:00 p.m. to 5:20 p.m. on June 28, Straits Exchange Foundation (SEF) Vice Chairman Kao Koong-lian and Association for Relations Across the Taiwan Straits (ARATS) Vice Chairman Zheng Lizhong completed the final preparatory procedures for the Cross-Strait Economic Cooperation Framework Agreement (ECFA) and Cross-Strait Agreement on Intellectual Property Right Protection and Cooperation. After confirming the accuracy of the agreement contents, the two sides agreed to present the agreements to the leaders of the SEF and the ARATS for further discussion and signing. The two sides also discussed ways to implement the agreement and exchanged initial views on issues for the sixth talks.

2. Talks
From 9:00 a.m. to 11:20 a.m. on June 29, SEF Chairman Chiang and ARATS Chairman Chen held open and closed-door meetings under the principles of reciprocity and dignity. The two sides had a sincere and pragmatic exchange of views on the significance of the issues for the current talks, the arrangement of issues for the next talks, the implementation status of previously signed agreements, and exchanges between the SEF and ARATS. The two sides agreed to simplify the form of the talks in the future, including the separate planning of meeting and visit activities, with visit activities to be included in annual exchange plans.

3. Agreement Signing
At 2:30 p.m. on June 29, the leaders of the SEF and the ARATS officially signed the ECFA and Cross-Strait Agreement on Intellectual Property Right Protection and Cooperation, as well as exchanged memorial gifts.

Meeting
(1) From 4:30 p.m. to 5:00 p.m. on June 29, Taiwan Affairs Office Director of the State Council Wang Yi met the SEF negotiation delegation at the Yuzhou Hotel.
(2) At 11:15 a.m. on June 30, the Secretary of Chinese Communist Party Chongqing Committee Bo Xilai met the SEF and the ARATS delegations at Yuzhou Hotel.

Main Content of the Two Agreements

1. Signing of the ECFA

The ECFA accords with the principles of reciprocity and mutual benefit and moves forward in a gradual, orderly manner. The agreement also is rooted in the basic principles of the WTO and considers the economic situation on both sides. It seeks to gradually reduce or eliminate barriers on trade and investment between the two sides to create an environment for fair trade and investment. The agreement will advance trade and investment relations between the two sides and establish a cooperation mechanism beneficial to economic prosperity and development on both sides. The ECFA consists of five chapters, 16 articles and five annexes. In scope, it broadly covers economic and trade issues, including tariff concessions, opening of the service market, the promotion and protection of two-way investment, the protection of intellectual property rights, and economic and industry cooperation.

The ECFA also includes "early harvest" arrangements. Under the early harvest list for trade in goods, the mainland side has agreed to include 539 Taiwan products with a total trade value of US$13.838 billion, or about 16.1% of the mainland's total imports from Taiwan. Taiwan has agreed to include 267 mainland products in the early harvest list, with a total trade value of US$2.858 billion, representing about 10.5% of Taiwan's total imports from the mainland. In addition, the two sides have drafted interim rules of origin and defensive measures to ensure that only the goods made by the two sides can enjoy preferential tariff treatment and lighten the impact and industry damage caused by the large-scale import of early harvest goods. The early harvest list for trade in services except open up access to the finance sector, the two sides also will mutually open up eight service markets, giving Taiwan businesses preferential treatment relative to Korea, Japan, Europe, the United States, and other WTO members.

The ECFA is a framework agreement. Within six months after it comes into force, the two sides will begin negotiations on four follow-up agreements related to the trade in goods, trade in services, investment, and dispute resolution.

2. Signing of the Cross-Strait Agreement on Intellectual Property Right Protection and Cooperation

The IPR protection and cooperation agreement signed between the two sides at the talks is highly specific in content and will produce substantive benefits for the people on both sides. These include: Mutual acknowledgement of priority for patent, trademark and plant variety rights; and mutual processing of applications for plant variety rights, and negotiations on expanding the scope of protection. Under the agreement, copyright verification for audiovisual products can be handled directly by the related industry associations in Taiwan. The agreement also establishes a mechanism for enforcement coordination so as to jointly fight piracy and counterfeiting, shutdown infringing music and movie file download websites, jointly combat the malicious registration of famous trademarks or production areas, and strengthen enforcement against fruit mislabeled as being of Taiwan origin. Under the agreement, the two sides will promote operational exchanges and review cooperation; encourage patent and trademark agency cooperation; and establish four working groups on patents, trademark, copyrights and variety rights at competent agencies of the two sides to further promote related work planning and programs.

Significance and Results of the Talks

1. This time, the Taiwan negotiation mission was formed by high-level representatives of the SEF and the ARATS, as well as officials of related competent agencies, including the vice minister of the Department of Economic Affairs and officials of the Bureau of Foreign Trade, Industrial Development Bureau, Intellectual Property Office, Ministry of Finance, Financial Supervisory Commission, and Council of Agriculture. The mainland mission was joined by personnel of ARATS, the Taiwan Affairs Office, Ministry of Commerce, State Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Finance, General Administration of Customs, General Administration of Quality Supervision, Inspection and Quarantine, State Administration of Radio, Film and Television, China Banking Regulatory Commission, China Securities Regulatory Commission, and Ministry of Agriculture. Furthermore, for the first time the mainland sent the Vice Minister of Commerce Jiang Zengwei to attend the talks and signing ceremony, demonstrating the importance that the mainland side attaches to the agreement.

2. Over the past two years, the two sides have signed 14 agreements and reached one consensus. This major achievement indicates that the institutionalized negotiation channel between the SEF and the ARATS is the most effective mechanism for the two sides to communicate and handle issues. With the stable and orderly operation of this mechanism, and on the foundation of the various agreements and consensus, institutionalized cross-strait negotiations will help to deepen mutual trust, maintain peaceful and prosperous cross-strait relations, and enable the people on both sides to share the fruits of reciprocal negotiations and benign interactions.

3. The signing of the ECFA is a win-win outcome for both sides. It will establish an orderly environment for cross-strait economic and trade exchanges and help both sides to strengthen and globalize their economies. The agreement creates a niche for cross-strait economic development. It is an important milestone in cross-strait economic and trade relations and a critical step for both sides in facing regional economic integration and global economic development trends.

4. During the negotiations this time, the two sides agreed to establish a cross-strait Economic Cooperation Committee as stipulated under the ECFA. The committee will continue discussions on follow-up issues and serve as a new and important work platform in cross-strait economic and trade relations. In future, this task-based organization will, according to the agreement, resolve any disputes over the interpretation, implementation and application of the agreement. The two sides still need to further discuss and confirm the committee's organization type and work liaison mechanism.

5. The protection of intellectual property rights (IPR) is a universal value. If the two sides can cooperate and, through their respective laws and systems, establish sound IPR protection measures, it will be beneficial to the cross-strait trade in goods and services and brand and patent establishment. Moreover, the Cross-Strait Agreement on Intellectual Property Right Protection and Cooperation will create an even better environment for protecting innovation, which will have a major and lasting impact on industries on both sides.

 
6. The two sides exchanged views on planning the next phase of negotiations. They agreed to include cross-strait medical and health cooperation as an issue for the next round of talks, as well as to immediately begin contact between the competent agencies on the two sides to facilitate the early completion of the negotiations so that an agreement can be signed at the sixth talks. In addition, the two sides agreed that after signing the ECFA, they would promptly begin preparations for talks on an "investment protection agreement" so that negotiations can be promptly completed.

7. During the talks this time, the two sides also reviewed the implementation status of the 12 agreements and one consensus reached by the SEF and the ARATS over the past two years. Although results of these agreements are gradually coming to light through the efforts of both sides, there is still room for improvement in the implementation process. The two sides agreed to set priorities based on urgency, and that the SEF and the ARATS would convene related meetings soon to conduct a review and make improvements.