Progress made in cross-strait consultations on Investment Protection Agreement

From December 20th to 22nd, the sixth talks between the head of ARATS (Association for Relations across the Taiwan Straits) and that of SEF (Straits Exchange Foundation) was held in Taipei. Experts from the two sides had a discussion on the cross-strait investment protection agreement and made some progress.

According to the consensus reached at the fifth talks and provisions of the second paragraph, Article five of ECFA (Economic Cooperation Framework Agreement), the two sides had exchanged views on the establishment of investment safeguard mechanism, the improvement of transparency for investment-related provisions, the gradual reduction of restrictions on mutual investment and the promotion for investment facilitation. From the interests of cross-strait investors, the both sides agreed that they should follow the conventions and practices, reflect their own characteristics, improve the investment environment and effectively protect and promote mutual investment.

Both sides agreed that the agreement should cover definitions on investment and investors, treatment and transparency of investment, the gradual reduction of investment restrictions, the investment facilitation, taxes, the compensation for damages and losses, subrogation, diversion, refuse of conferred benefits, applications and exceptions, and the settlement of investment disputes etc.

ARATS and SEF will make joint efforts in the principles of two-way balance, effective protection, reduction of restrictions and investment facilitation in order to promote the progress of negotiations on cross-strait investment protection agreement and to reach the final agreement as soon as possible.

Source: Ministry of Commerce Website; http://english.mofcom.gov.cn/aarticle/newsrelease/significantnews/201012/20101207335515.html

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