• Tuesday, February 9, 2010

80,000 Taiwanese to lose jobs due to China trade pact

For cooling: A worker assembles air-conditioning units at a factory in Nanchang, China. Picture: EPA
Saturday, October 17, 2009
A PROPOSED trade pact between Taiwan and China will see up to 80,000 Taiwanese lose their jobs or need additional training to stay in work, the government yesterday said.

"We aim to alleviate the impact through negotiations," a spokesman at the Council of Labour Affairs said, asking not to be named.

"We will try our best to help the unemployed and we will try to provide more subsidies to them."

The 80,000 estimate, which the government says is a worst-case scenario, comes as China-friendly President Ma Ying-jeou strives to conclude the trade agreement with the mainland.

Relations between the island and China have warmed considerably since Ma came to power last year, with the trade agreement the latest in a series of moves to bring the traditional rivals closer together.

Despite the job losses, Ma's administration has repeatedly argued the trade agreement will boost the flow of goods and personnel between the two sides, raising annual economic growth by more than one percentage point.

The 80,000 are concentrated in low-tech industries such as towel, footwear and underwear manufacturing, which are especially vulnerable to the planned trade Economic Cooperation Framework Agreement.

"The government will provide all means necessary to help the affected industries restructure," the Council of Labour Affairs spokesman said.

The ministry of economics earlier said it would assign about 100 million Taiwan dollars (US$3.09 million) to support that restructuring.

Taiwan and China reportedly will hold informal talks next week in preparation of the trade pact. It will be the fourth such meeting and will aim for a timetable for formal negotiations.

The opposition Democratic Progressive Party, which favours independence from China, has strongly opposed the pact, which it says would demote Taiwan to the status of a local government in future talks with the mainland.

China and Taiwan split in 1949 after a civil war, but Beijing still regards the self-ruled island as part of China.

AFP