The Impact of a Free Trade Pact between China and Taiwan

Channel News Asia reports:

TAIPEI - 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 said on Friday.

"We aim to alleviate the impact through negotiations," a spokesman at the Council of Labour Affairs told AFP, 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.