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Impact of FTA between China, Japan, South Korea would be huge: BOFT

2012/06/20 22:36:30

Taipei, June 20 (CNA) A free trade agreement (FTA) between China, Japan and South Korea would have a huge impact on Taiwan's economy, the Bureau of Foreign Trade (BOFT) said Wednesday.

If the three countries signed an FTA, which they agreed to work toward this year, and Taiwan has not completed follow-up talks under the cross-strait Economic Cooperation Framework Agreement, it is expected that the impact on Taiwan's exports could be as high as US$7.7 billion, the bureau said.

The sectors that would be hit the hardest would be the rubber and plastic product exports, estimated to be US$760 million, followed by textile exports at US$550 million and machinery exports at US$450 million.

Meanwhile, the BOFT said the Office of the United States Trade Representative has announced that the United States and other members of the Trans Pacific Partnership (TPP) have agreed to invite Mexico and Canada to join TPP talks to increase its membership to 11.

The BOFT said that the gross domestic product of the nine members accounted for 26.74 percent of the world GDP, higher than EU's 25.78 percent, becoming the largest integrated trade region.

If Mexico and Canada are also included, then the figure could account for 29.6 percent of the total.

The bureau noted that President Ma Ying-jeou had expressed the hope of joining the TPP in eight years to avoid being marginalized.

(By Huang Chia-wen and Lilian Wu)