I. Foreword
The Straits Exchange Foundation (SEF) and the Association for Relations Across the Taiwan Straits arranged meetings of officials of the competent organizations on both sides of the Taiwan Straits for negotiations on the Cross-Strait Agreement on Trade in Services. Because of the wide range of topics and the complexity of problems involved, the negotiations had lasted for two years until both sides agreed to sign the Cross-Strait Agreement on Trade in Services.
As negotiations continued, the Mainland Affairs Council authorized the Straits Exchange Foundation to hold the Ninth Cross-Strait High-Level Talks with the Association for Relations Across the Taiwan Straits (ARATS) to conclude the negotiations and sign the Cross-Strait Agreement on Trade in Services.
On June 14, the Straits Exchange Foundation held a preparatory meeting with the ARATS for the Ninth Round of Cross-Strait High-Level Talks at the Kung-liang Hall of the Straits Exchange Foundation Building in Taipei. Kao Koong-lian, Vice Chairman of the SEF, and Zheng Lizhong, Executive Vice President of the ARATS, co-chaired the meeting where the Cross-Strait Agreement on Trade in Services and all its protocols were closely checked and verified and opinions were exchanged on how to implement the said Agreement after it was signed. At the same time, it was agreed at the meeting that the Ninth Round of Cross-Strait High-Level Talks would be held at the Dongjiao Guest House in Shanghai on June 21.
II. Procedures of Ninth Round of Cross-Strait High-Level Talks
Maa Shaw-chang, Deputy Secretary-General of the SEF led an advance team to Shanghai on June 18 to make preparations for the opening of the Ninth Round of Cross-Strait High-Level Talks. On the morning of June 20, Lin Join-sane, SEF Chairman, arrived in Shanghai with his SEF delegation to attend the Ninth Round of Cross-Strait High-Level Talks. The advance team and the delegation returned to Taipei on June 22. During the 50-hour stay in Shanghai, the Lin delegation met President Chen Deming of the ARATS, ARATS Executive Vice President Zheng Lizhong, Director Zhang Zhijun of the Taiwan Affairs Office of the State Council, and Secretary Han Zheng of the Shanghai City Committee of the Chinese Communist Party to exchange views, signed the Cross-Strait Agreement on Trade in Services, and reached a Joint Opinion Adopted on Resolving Kinmen Water Supply Problem.

The schedule of the Ninth Round of Cross-Strait High-Level Talks follows:
1. Preparatory Meeting
Kao Koong-lian, Vice Chairman of the Straits Exchange Foundation, and Zheng Lizhong, Executive Vice President of the Association for Relations Across the Taiwan Straits, held the second round of preparatory talks for the Ninth Round of Cross-Strait High-Level Talks from 3 to 4:30 p.m. on June 20.
2. High-Level Talks
Lin Join-sane, Chairman of the Straits Exchange Foundation, and Chen Deming, President of the Association for Relations Across the Taiwan Straits, held high-level talks from 9 to 11:20 a.m. on June 21.
3. Signing of Cross-Strait Agreement on Trade in Services
Lin Join-sane and Chen Deming signed the Cross-Strait Agreement on Trade in Services at 2 p.m. on June 21. They exchanged presents.
4. Press Conference
The delegations of the SEF and the ARATS each held an international press conferences starting at 2:30 p.m. on June 21.
5. Meetings
(1) Zhang Zhijun, Director of the Taiwan Affairs Office of the State Council, received Lin Join-sane and his delegation at 4 p.m. on June 21.
(2) Han Zheng, Member of the Central Politburo of the Chinese Communist Party and Secretary of the CCP Shanghai City Committee, received Lin Join-sane and his delegation at 6 p.m. on June 21.
III. Significance and Results of Ninth Round of Cross-Strait High-Level Talks
1. Implementation of Institutionalized Negotiations
The Ninth Round of Cross-Strait High-Level Talks was the first formal meeting of the newly appointed leaders of the SEF and the ARATS. It signifies a transition forming a bridge between the earlier and later stages in institutionalized negotiations between both sides of the Taiwan Strait. Lin Join-sane, SEF Chairman, and Chen Deming, ARATS President, signed the Cross-Strait Agreement on Trade in Services to ensure the continuation of the institutionalized negotiations. Over the past five years, the two sides of the Taiwan Strait have signed 19 agreements and published two joint consensuses and three joint opinions. By enforcing these agreements, the two sides have set in place mechanisms for interaction, which are tangible results of the effectuation of the policy of “no mutual recognition of sovereignty and no mutual denial of power of governance.” In the future, both sides will continue to build upon the basis they have so far laid down to make the institutionalized negotiations follow the past and herald a new future so that new vistas may be opened up for cross-strait exchanges to reap more benefits for the people.
2. Signing of Cross-Strait Agreement on Trade in Services
The Cross-Strait Agreement on Trade in Services is the first accord the two sides of the Taiwan Strait signed in accordance with the Cross-Strait Economic Cooperation Framework Agreement (ECFA) and the General Agreement on Trade in Services (GATS) of the World Trade Organization. It concerns the opening of the market for service industries, on which government organizations in charge have completed an expert estimation in light of the principle of “maximizing benefits and minimizing impact” and in consultation with leaders of service industries to fully protect the interests of the Taiwan side.
As a result, the Cross-Strait Agreement on Trade in Services has created a better environment for the development of cross-strait investment and a free market as well as promoted actively the successful negotiations for ECFA follow-up agreements. After the trade in services across the strait has been institutionalized, Taiwan’s service industries will enjoy a higher ratio of equity holding, expand their scope of business and facilitate their trade with the China Mainland. As a consequence, Taiwan businesses on the Mainland will be able to expand their Mainland market and raise their competitiveness on the Mainland market, while more foreign direct investment may be attracted to Taiwan from the Mainland to energize Taiwan’s services market.
Taiwan will inform the World Trade Organization that cross-strait trade in services has been much more liberalized. Taiwan’s WTO report on freer trade to benefit both sides of the Taiwan Strait on a win-win basis will help Taiwan join the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP).
By signing the Cross-Strait Agreement on Trade in Services, Taiwan has not only informed the world that it is further liberalizing trade but has also shown the people on Taiwan the determination of the government to further promote the mutual confidence with the Mainland and deepen mutually beneficial cross-strait economic exchange and cooperation. The said Agreement has increased perceptively the ECFA benefits. It is an agreement benefiting the people and enterprises on both sides of the Taiwan Strait, a mutually beneficial win-win accord.
3. Joint Opinion Adopted on Resolving Kinmen Water Supply Problem
It is an agenda of great importance that Kinmen will receive supply of water from the Mainland China. It concerns Kinmen’s overall water supply for the people who need more water. Water supply to Kinmen from the Mainland is a part of the development of economic and trade exchanges between the two sides of the Taiwan Strait.
At the Ninth Round of Cross-Strait High-Level Talks, the Straits Exchange Foundation and the Association for Relations Across the Taiwan Straits exchanged views on how to solve problems of water supply to Kinmen from the Mainland China. The Joint Opinion was reached at the Cross-Strait High-Level Talks. It was also agreed that both sides would coordinate relevant organizations to ensure the water supply to Kinmen from the Mainland China.
4. Arrangements for Follow-up Negotiations
It was agreed that six agendas would be discussed at the Tenth Round of Cross-Strait High-Level Talks. They include:
(1) ECFA follow-up agreements which are expected to be negotiated and concluded before the end of 2013; and
(2) An agreement on prevention of double taxation and cooperation in taxation, an agreement on the establishment of SEF and ARATS representative offices in each other’s territory, a cooperation in seismological monitoring agreement, and an meteorological cooperation agreement.
The aforesaid agreements may be signed as soon as negotiations are completed. It was also agreed that the organizations concerned would be requested to start exchanging views on cooperation in environmental protection.
5. Selective Review of Implementation and Promotion of Agreements
Results of the implementation of agreements in force were selectively reviewed at the Ninth Round of Cross-Level Talks. They included agreements on tourism, air and maritime transportation, joint fight against crime and judicial mutual assistance, food safety, the ECFA, and investment protection and promotion. The SEF expressed concerns of the people of Taiwan and those shown in public opinion over the extradition from the Mainland of suspects wanted for serious economic crimes and the compensation for damage in food safety cases, including in particular foods containing melamine residue imported from the Mainland. The Mainland side was urged to take action for improvement of food safety.
The SEF also recommended that Mainland travelers be allowed to transit in Taiwan to other foreign destinations. At present, many such travelers have to transit at a third place to the United States and other countries. But Taiwan travelers can change planes at Mainland airports to go on to other countries. So, it is only fair for Mainland travelers to travel abroad via Taiwan. Moreover, it will help increase the competitiveness of both sides in the world air transit market. It was recommended that the Mainland side take quick action to make such transits happen in accordance with international aviation practice.
The SEF handed over to the ARATS all cases of investment dispute and those involving personal safety of Taiwanese residents on the Mainland. The ARATS promised to take action to solve the cases. It was agreed that the second meeting should be called in the second half of 2013 to review and discuss the results of the implementation of the agreements in force so that the agreements might be enforced thoroughly and effectively to heighten the confidence of the people in and support for the accords signed between the SEF and the ARATS.
IV. Conclusion
Institutionalized negotiations between the two sides of the Taiwan Strait have reached a mature stage in the past five years since the SEF and the ARATS resumed them. Consequently, the SEF and the ARATS have held nine rounds of Cross-Strait High-Level Talks, signed 19 agreements and published two joint consensuses and three joint opinions covering the three direct links of air transport, maritime shipping and postal service; tourism, food and drug safety; fisheries; quarantine; joint fight against crime; economic cooperation; protection of the intellectual property right; financial supervision; settlement of accounts; exchange of nuclear safety information; customs cooperation; and trade in services. Every one of the accords was concluded in line with the principle of “Taiwan first and benefit to the people,” in order of “urgent matters before non-urgent ones, easy issues before difficult ones, and economic matters before political ones” and on the basis of “equality, dignity and mutual benefit.” As a consequence, the two sides were not just able to solve problems arising from the cross-strait exchanges but could provide institutionalized protection for the people on both sides of the Taiwan Strait and lay the foundation for better cross-strait economic development as well.
Looking forward towards the future, the SEF shall work, in accordance with the guidelines set forth in the National Vision of the Golden Ten Years President Ma Ying-jeou envisaged and the Executive Yuan promulgated and with the authorization of the government, to expand and promote cross-strait economic, trade, cultural, scientific and technological, environmental, social, judicial and human rights exchanges in line with the principle of “national need, public support and parliamentary supervision” so as to promote further understanding of the people on both sides of the Taiwan Strait and their cooperation. The SEF shall strive constantly for the peaceful development of cross-strait relations and the common prosperity of the people on both sides of the Taiwan Strait.