The document summarizes concerns with the Cross-Strait Service Trade Pact between Taiwan and China. It notes that [1] the agreement allows for unequal levels of openness, with Taiwan committing to open more sectors than China. [2] Many service sectors opened by Taiwan are not reciprocally opened by China, threatening Taiwan's tertiary industry. [3] The agreement needs to be renegotiated to promote more balanced openness and protect Taiwan's economic security and development.

1. Cross- Strait Service Trade Pact:
Guidelines and Recommendations
For Renegotiation
Professor Show-ling Jang
Department of Economics
National Taiwan University
2014/03/19
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2. Cross-border Service Modes Being Completely
Unsymmetrical
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China mainly does not promise
anything; Taiwan is not allow to
offer cross-border services
Taiwan mainly does not have
limitations; China can offer
cross-border services
China Taiwan
 China’s limitations on cross-
border services would make
our investors establish stores
in China, accelerating the
drain of Taiwan’s funds and
brains. China will become
stronger and our service
industry would become
hollow.
Cross-border Services

3. 3
Unequal Degree of Openness: Taiwan open
more than China
China used “developing country” status to join WTO in 2001,
Taiwan used “developed country” status to join WTO in 2002.
Therefore, the amount of items China commit to open is much
less than Taiwan.
Nowadays, Taiwan and China still apply this unequal status in
Service Trade Pact negotiation, it leads Taiwan’s degree of
openness is larger than China.

4. The items Taiwan open to China,
but China does not open to Taiwan
Computer and related services
Hardware consultation related services
Information processing services (portal
management)
Data base services
Others
Wholesale, Retail, Consignee
Tourism and travel-related services-
hotels and restaurants
Recreational, cultural, and sports-related
services
Other-amusement parks and theme
parks (national forest parks)
Other commerce services
Advertising services
Management consulting services
Consulting attached to livestock industry
Consulting attached to mining services
Consulting services related to scientific
technology
Equipment maintenance services
Packaging services
Mailing list editing services
Transportation services
 Shipping services
 Aviation CFS management
 Highway merchandise transportation
 Warehousing services
Telecommunication services
Express Delivery services (land)
Second type of telecommunications special
services
Rental services with no operators
 Aircraft sales and marketing services
 Small car rental
 Other mechanics and equipment 4

5. Direct impact: Threatening Almost All of the Tertiary Sector
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The government claims that Taiwan only opens 64 items
of the tertiary sector to China, but in reality the services
opened reach thousands items, everything needed cradle-
to-grave. It will affect more than 4 million employees of
the tertiary sector.
Travel
Including: bakeries, snack
bars, specialty stores,
stationary stores, jewelry
stores, shoe stores,
department stores, malls,
supermarkets,
convenience stores,
cosmetic shops..
Transportation
Commerce
Finance
Health
Communication
Society
Entertain-
ment
Sports
Construction
Environment
Others
Distribution
Wholesale Retail
Consignee

6. Cross-Strait Service Trade Pact needs to be renegotiated
• This Service Trade Pact directly harms the survival of
Taiwan tertiary service, indirectly lowers Taiwan
manufacturing competitiveness, damage our national
security and quality of living. Hence, Service Pact needs to
be renegotiated.
• Refers to Korea’s experience: We shall sign FTA with
advanced countries before with China.
• Refers to China’s and Korea’s experiences: We shall sign
Commodity Trade Pact and Service Trade Pact
simultaneously.
• Refers to China’s experience: We shall open Taiwan’s
market progressively by supplementary agreement.
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