A newly signed trade pact with China would end Taiwan's economic isolation and bring foreign investment to the island, President Ma Ying-jeou said Thursday, according to dpa. Ma tried to allay fears that the pact might hurt Taiwan's sovereignty or worsen unemployment, two days after the Economic Cooperation Framework Agreement (ECFA) was signed. "The ECFA will end Taiwan's economic isolation, boost cross-strait cooperation and speed up Asia-Pacific economic integration," he said. While the pact is not a cure-all, he said, it is the right choice because Taiwan's economy had been marginalized during the six decades of tense relations between Taipei and Beijing. When the pact, which is similar to a free trade agreement, takes effect on January 1 pending parliamentary approval, it would also benefit China-based Taiwan businesses, Ma said. However, Taiwan must revamp its economic system and improve its investment environment to lure foreign investment, Ma warned. Taipei hopes the signing of the pact would prompt countries with no diplomatic ties with the island to conclude free trade agreements with Taiwan. The island is eager to sign such pacts with its main trading partners, such as the United States, Japan, Singapore and South Korea.
