Cross-strait Economic Cooperation Framework Agreement Legal Problems Under The Wto Framework

On June29,2010, representatives from Mainland China and Taiwan signedCross-Straits Economic Cooperation Framework Agreement (ECFA) in Chongqing.ECFA is an important economic cooperation agreement reached by Mainland Chinaand Taiwan based on the rules of World Trade Organization (WTO). And it’s thelandmark of legally transformation of the cross-straits economic link. This article willdiscuss the legal issues related to ECFA within the framework of WTO legal system.It begins by reviewing the conclusion of ECFA and then it explores the motivationthat drives the two sides for signing the pact. In particular, it provides a detailedexamination of the text from the following aspects: the aims and objectives of ECFA,trade and investment, economic cooperation, early harvest and other important terms.Then the article discusses the ECFA’s consistency with WTO requirements for aninterim FTA agreement in terms of both substantive and procedural. The articleanalyses the legal nature of ECFA by focusing on the dual characters of ECFA andcomes up with the conclusion that ECFA is a special legal arrangement between twodifferent customs territories of the same country which follows the rules of WTO atthe same time. The article also explains the reason why ECFA was modeled on freetrade agreements (FTAs) of the Association of Southeast Asian Nations. Finally, thearticle makes a comparison of ECFA and Mainland and Hong Kong Closer EconomicPartnership Arrangement to highlight the features of ECFA.