Tuesday, May 19, 2009

Signing ECFA requires referendum



A legal contract has a tremendous power for a person living in a modern society. Just a simple transaction of a housing ownership without paying attention to the contract details may have very serious consequences such as losing land or house ownership without compensation.

Similarly, any policy legislation of a government would have impacts on welfare of some citizens affected by the policy. Under such a condition, a democratic political system will ask the citizens to vote. Such a vote for a proposed policy legislation is called the referendum. Living in the United States for more than 30 years, I have voted many times on referendum for many local government policies. An example of such a referendum at the local government level is to see if the citizens would pay more on the property tax to improve local school quality.

Taiwan claims herself a democratic country. Such a claim should be tested if the government allows her citizens to vote on legislation policy or any international treaty that would affect interest of millions of Taiwanese.

In the last few month, Ma's administration has expressed the eagerness to sign the ECFA treaty with China. If you make a poll to day to see how many Taiwanese understand ECFA, you will see fewer than 20% Taiwanese understands what ECFA means. Signing any treaty when her citizens do not understand the contents and the serious consequences of the treaty is irresponsible. If Ma signs the treaty without the consent of the majority of Taiwanese, you can call the act of signing treaty treason.

Ma coined the phrase ECFA (Economic Cooperation Framework Agreement) after original treaty proposals, CEPA (Closer Economic Partnership Arrangement)and CECA Comprehensive Economic Cooperation Agreement)received stiff opposition from the populace. Although the name is changed now, however, the contents are not. What is ECFA? It is basically a Hong-Kong's style of free-trade-agreement with China.

There are three major concerns for signing this treaty with China. First, in signing this treaty, Taiwan is forever locked into Chinese economic system. Taiwan can no longer have free trades with her northern neighbors such as Japan, Korea; her southern neighbors such as Philippine, Singapore; her former ally the U.S. etc. All Taiwanese products will now have a mark, instead of 'made in Taiwan'; it will be 'made in China.' which represents poor product quality when we are trying to sell our products in the international market. Second, Chinese cheap products will sell without resistance in Taiwanese market. Many industry will accordingly collapse. This has already happened in our textile industry. After signing the treaty, it is expected that Taiwanese agriculture industry will also collapse. Third, Chinese labor market will also compete with Taiwanese labor market. Taiwanese wages are higher than those of Chinese, yet Chinese jobless population is approximately 5 times of the total Taiwanese population. One can immediately see the impact when ECFA is signed.

Of course, Ma would argue that all the big multinational cooperation's such as Formosa Plastics will benefit from signing the treaty. Yes, they may be benefited from the treaty. However, just like any policy, some people will be benefited, others will be hurt. A responsible government should open up discussions, debates, and finally resolved by the referendum.

'ECFA-Determined by Referendum', this is the slogan that DPP (Democratic Progressive Party) is demanding on this 5-17 demonstration of 2009. This is a modest demand on our government. If you love Taiwan, I urge you to support for it. "Signing ECFA Requires Referendum".

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