ONE: PREAMBLE

At the seventh round of talks between Straits Exchange Foundation (SEF) Chairman Chiang Pin-kung and Association for Relations Across the Taiwan Strait (ARATS) President Chen Yunlin, both parties agreed that the issues of cross-strait investment protection and customs cooperation would be the main focus of the next high-level meeting, which is hereby referred to as the Eighth Chiang-Chen Talks. After officials of competent authorities from both sides reached a consensus following a succession of professional meetings, the Eighth Chiang-Chen Talks were scheduled from August 8 through August 10, 2012 in Taipei.

TWO: ITINERARY

ARATS Vice President Zheng Lizhong, who will be in charge of representing Mainland China at the preparatory meetings, leads a 25-member working group landing at the Taoyuan International Airport on the morning of August 6, 2012. ARATS President Chen soon follow suit, arriving with ARATS negotiators on the afternoon of August 8. The delegation is scheduled to return to Beijing on the noon of August 10, 2012.

1. Preparatory Meeting
A day before the start of the official high-level meeting, SEF Vice Chairman Kao Koong-lian and ARATS Vice President Zheng confirm the draft of agreement & relevant arrangement during the last round of preparatory negotiations from 3:00 PM to 4:00 PM on August 8, 2012.
2. Eighth Chiang-Chen Talks
SEF Chairman Chiang and ARATS President Chen jointly preside over the formal cross-strait talks from 9:00 AM to 11:30 AM on August 9, 2012.
3. Agreement-signing Ceremony
SEF Chairman Chiang and ARATS President Chen sign two agreements on cross-strait investment protection and customs cooperation, and issue a joint statement concerning a consensus on the protection of investors’ personal safety and freedom at 2:30 PM on August 9, 2012.
4. Press Conferences
SEF and ARATS delegates hold two press conferences for foreign journalists and domestic media representatives at 3:00 PM on August 9, 2012.
5. Greetings from the MAC Head
Lai Shin-yuan, minister of the Mainland Affairs Council (MAC), meets ARATS President Chen at the Grand Hyatt Taipei at 4:30 PM on August 9, 2012.
THREE: DETAILS OF THE SIGNED AGREEMENTS AND CONSENSUS

1. The Cross-Strait Investment Protection Agreement
i.) The issue of investment and asset protection has been a hotly concerned topic throughout the development of closer cross-strait economic ties. The formal endorsement of the Cross-Strait Investment Protection Agreement by both sides of the strait will greatly enhance institutionalized economic exchanges as well as the implementation and benefit the Economic Cooperation Framework Agreement (ECFA).
ii.) The discussion and formal agreements made through governmental channels concerning investment and assets will provide structured protection and greater latitude for security to investors on both sides of the Taiwan Strait.
iii.) During the negotiations, the Taiwan delegation strived to improve upon international investment protection standards by redefining an investor to include those who indirectly invest through a third location; extending personal safety rights and judicial protection not only to the individual investor, but also to personnel related to or employed by the investor; requiring documental proof and compulsory repayment for assets expropriation ; and an arbitrary mechanism for the settlement of disputes between investors.
iv.) The key points in this agreement are: the adoption of a broadened definition of who is an investor; the right to equal treatment based upon international investment protection standards and the needs of Taiwanese businessmen in China; the immediate reinforcement of necessary measures safeguarding the personal safety and individual freedom of all investors and related personnel; and the establishment of proper protocol and legal guidelines concerning expropriation, reimbursement, subrogation, as well as asset and debt transfers. In terms of settling cross-strait investment disputes, the agreement offers both Private-to-Government (P2G) and Private-to-Private (P2P) mitigation mechanisms. Under the P2G framework, investors can seek multiple remedies with different levels of mediation, such as a channel for direct negotiations between private business and governments, government-assisted mediation and SEF/ARATS-backed investigations. The P2P platform, which defines “private” as natural citizens, legal entities and corporate organizations, will allow those who are in conflict to opt for either a Taiwanese or Chinese arbiter to resolve their dispute at a third-party location that both parties have agreed upon. All of the definitions, judicial rights and mitigation channels are available and equally applicable to both Taiwanese businesspeople in China and Chinese businesspeople investing in the Taiwanese markets, thus adhering to the promise of crafting mutually beneficial, win-for-all arrangements.

2. A Consensus on Personal Safety and Freedom
i.) Although not considered standard practice for international investment agreements, in heed of the collective voice of the Taiwanese communities in China, measures to safeguard investors’ personal safety and freedom formed part of the newly inked investment protection agreement. The detention or the partial restriction of freedom of any Taiwanese passport holder in China will be notified within 24 hours, and vice versa for Chinese individuals apprehended by Taiwanese authorities.
ii.) This consensus between the two sides of the strait is partially outlined in Article 3 of the Cross-Strait Investment Protection Agreement; details of the 24-hour notification system and visiting rights for family members as well as personal meetings with the detainee’s lawyer of choice are carefully recorded in a separate document known as a Consensus on Personal Safety and Freedom. This separate article is a reflection of both parties’ determination to safeguard the basic safety and legal rights of their citizens.

3. The Cross-Strait Customs Cooperation Agreement
i.) Based on Article 6 of the ECFA, the Cross-Strait Customs Cooperation Agreement will pave the way for the expansion of the ECFA’s Early Harvest Program, as well as contribute to the growth in the cross-strait trade volume of goods and services.
ii.) The three main areas will be customs-processing procedures, border control and tariff-free applications. Per international standards, the agreement also outlines using an Authorized Economic Operator (AEO) certification system and Radio-Frequency Identification (RFID) tracking technology to ensure transparency and efficiency in customs operations. Through the utilization of risk management in borders-and-customs control and the combining of forces to combat smuggling and trafficking rings, cross-strait trading will be greatly enhanced in terms of expediency, quality and safety standards.

FOUR: THE SIGNIFICANCE OF THE EIGHTH CHIANG-CHEN TALKS

1. Institutionalized Negotiations Usher Forth New Horizons
i.) The signing of 18 formal agreements, the declaration of joint consensus on 2 key issues and the issuance of 2 statements outlining the same opinions, all within a span of 4 years, are a reflection of the ripeness of cross-strait talks and negotiations. The efficiency of direct dialogue, the steady progress and the accumulation of trust have created a strong foundation for positive and peaceful development on both sides of the Taiwan Strait.
ii.) In the future, both parties look forward to building upon this solid foundation and achieving more win-for-all arrangements, in order to maximize the benefits of cross-strait cooperation for the greater welfare of both Taiwanese and Chinese citizens.
2. The Cross-Strait Investment Protection Agreement
i.) The Cross-Strait Investment Protection Agreement not only applies to Taiwanese businesspeople in China, but also to Taiwanese corporations and all related personnel involved with cross-strait investments. The explicit declaration on investment and asset rights, business operations and management rights, as well as individual safety and freedom, offers umbrella protection that will equally benefit all investors, regardless of industry or sector.
ii.) The transparency and security offered by the Cross-Strait Investment Protection Agreement are likely to attract a greater flow of capital from the mainland to the Taiwanese market; such an influx of liquidity will in turn attract more foreign investment from other countries and help Taiwan regain its economic vitality and enhance its international competitiveness.
3. A Consensus on Personal Safety and Freedom
In accordance to a Consensus on Personal Safety and Freedom, the detention or the partial restriction of personal freedom of a Taiwanese investor and his or her party by Chinese authorities must be notified within 24 hours; the same treatment will be applied to Chinese individuals apprehended by Taiwanese authorities. In addition, both sides should provide convenience for visiting family members and a lawyer. These measures together will improve the protection of investor’s personal safety and freedom.
4. The Cross-Strait Customs Cooperation Agreement
The Cross-Strait Customs Cooperation Agreement was crafted to resolve customs-related disputes, to enhance the expediency of cross-strait customs operations and to curb the trafficking of illegal goods. Moreover, the agreement will help facilitate post-ECFA negotiations and the bilateral exchange of goods and services by lowering operational costs and processing time.
5. Reviewing the Implementation and Results of Past Agreements
A portion of the Eighth Chiang-Chen Talks was devoted to reviewing the implementation and results of past agreements, including the effects of the ECFA and cooperative measures in the fields of tourism, aviation and aeronautical transport, marine shipping and cargo, joint crime-fighting activities and judicial support, product quality and food safety, as well as medical and public-health services. SEF officials also relayed the Taiwanese public’s concerns with the expatriation process of major financial criminals, as well as the reimbursement for melamine-tainted food products, and asked for the Chinese government to properly address these issues in order to safeguard the lives and wellbeing of all citizens on both sides of the strait.
6. Establishing Priority Topics for Future High-level Talks
i.) Upon the conclusion of the Eighth Chiang-Chen Talks, both parties have accepted three priority areas as the new focus of ongoing post-ECFA negotiations – namely the trade in services, the trade in goods and the settlement of disputes. Both sides have also agreed to immediately sign a binding agreement concerning any of the above topics when a consensus is reached, selecting trade of services as the area of first priority.
ii.) In addition to economic cooperation, both parties nominated two environmental projects related to the monitoring of air quality and the tracking of earthquakes that will greatly benefit from the collaboration and inputs of Taiwanese and Chinese experts and research agencies.
iii.) Both parties will conduct separate assessments of the feasibility and potential impact of establishing branches on the two sides of the Taiwan Strait. Bilateral talks on such a move will take place when the suitable time comes.

7. SEF-ARATS Exchanges to Promote Deeper Understanding
In-between high-level talks on trade and economic cooperation, the SEF and the ARATS pledged to coordinate cross-strait exchanges related to culture, creativity and education, and to continue to seek new opportunities for bilateral teamwork and industrial partnership, all of which are conducive to strengthening bonds and fostering camaraderie.

FIVE: CONCLUSION

Since the resumption of cross-strait talks in June 2008, both parties have adhered to the principles of equality and dignity. The tactical resolve of leaving politics out of the trade talks has given rise to 8 high-level meetings, 18 official agreements and the declaration of joint consensus on 2 key issues. The SEF has never strayed from its objectives of safeguarding Taiwan and its citizens. The peaceful and prosperous development stemming from recent cross-strait milestones is a tribute to the SEF’s unwavering commitment and devotion.

The historic and symbolic significance of the Eighth Chiang-Chen Talks can be gleaned from the fact that it was the first high-level meeting between the two cross-strait parties since the re-election of President Ma Ying-jeou and his subsequent inauguration in May 2012. Under the direction set forth by President Ma in his Golden Decade and Peaceful Straits policies, the SEF will continue to be guided by the nation’s needs, the public’s concerns and the legislators’ supervision in all its cross-strait dealings. Abiding by the unbending rules of equality, dignity and reciprocity, the SEF endures as a communications channel for fostering bilateral exchanges, achieving win-for-all arrangements and ushering forth another Golden Decade of peace and prosperity.