TAIPEI: The proposed signing of an economic cooperation framework agreement (ECFA) between Taiwan and the mainland will be a mutually beneficial move rather than a zero-sum game, the head of external trade, Huang Chih-peng, said yesterday.

Huang made the comment in response to assumptions the ECFA would be unfavorable to Taiwan because the mainland would obviously benefit more from the agreement.

According to a report released recently by the Ministry of Commerce in Beijing, tariff reductions resulting from the ECFA are expected to boost the mainland's gross domestic product (GDP) by 0.63 percentage points, or more than $27 billion.

Meanwhile, a study commissioned by the economic affairs authorities and conducted by Taiwan's Chung-Hua Institution for Economic Research shows that the ECFA could boost Taiwan's GDP by 1.72 percentage points, or $6.9 billion.

Huang said that while comparing the increase in GDP on the two sides, the public should realize that these are extra benefits that would be non-existent without the ECFA.

Gains for Taiwan will not mean losses for the mainland or vice versa, he said, adding that Taiwan should go ahead and sign the agreement with the mainland as long as it would bring more benefits than disadvantages.

Meanwhile, representatives of Taiwan's labor sector insisted yesterday that laborers must have a say in talks on the ECFA, as it would impact most heavily on blue-collar workers in Taiwan.

The heads of the Labor Rights Association and Taiwan Labor Front pushed for labor representatives to be included in talks on the ECFA with the mainland, saying that the economic affairs authorities have not made enough of an effort to have labor represented in the negotiations.

Labor Rights Association CEO Wang Chuan-ping said the ECFA would have the greatest implications for workers, rather than for industries. However, no member of any labor group has been invited by the key planner on the Taiwan side to take part in the meetings and seminars on the proposed agreement, she complained.

Sun You-lien, secretary-general of the Taiwan Labor Front, also complained that several labor groups have contacted the relevant and CLA for assessment reports and relevant data concerning the ECFA plan, but have been told that such information is classified.

Sun suggested that in addition to taking the "passive" approach of granting subsidies to workers and industries, the government should devise more "constructive" measures to help create employment for those laborers who will lose their jobs as a result of the ECFA.

For example, he said, the establishment of big nursing home communities around Taiwan can help create a large number of long-term jobs for people in that field.

China Daily/CNA

(HK Edition 10/23/2009 page2)