Cross-Straits free trade discussions on hold

Cross-Straits talks on a free-trade agreement have been suspended as Taiwan goes through a political transition after its Jan 16 election, Phoenix Satellite Television reported on Tuesday.

Led by "premier" Mao Chi-kuo, Taiwan's "cabinet" resigned en masse after the ruling Kuomintang lost both the leadership and legislative elections.

John Deng, head of the island's economic affairs, reportedly said negotiations with the mainland on a free-trade pact, which would eliminate taxes on the vast majority of goods flowing across the Straits, will be totally suspended.