Taxation and aviation safety pacts consolidate peaceful cross-strait development between Taiwan and mainland China

Agreements on taxation cooperation and aviation safety were signed on 25 August by Taiwan’s Straits Exchange Foundation and mainland China’s Association for Relations Across the Taiwan Straits, further strengthening the basis for peaceful ties and mutual prosperity.

The taxation accord covers avoidance of double taxation and the enhancement of cooperation on tax issues. The flight agreement allows cross-strait carriers to use local personnel and facilities for maintenance services, as well as safety and airworthiness inspections. The pacts were signed during the 11th round of SEF-ARATS talks in Fuzhou, mainland China.

ROC Premier Mao Chi-kuo (pictured) said at a news conference on 26 August that implementation of the tax agreement would create a better environment for investment by Taiwan’s businesses and boost their competitiveness in the world market, thus stimulating the country’s economy. The aviation pact will help guarantee the safety of travelers, he added.

Premier Mao noted that while a bill on the oversight of cross-strait agreements has not yet been passed, in the negotiations on these two accords the government abided by the spirit of the bill by keeping relevant parties informed and evaluating national security risks, thereby allowing for widespread understanding of the content of the accords, resolving doubts, and garnering support for their signing.

Mainland Affairs Council Minister Hsia Li-yan said at the news conference that major issues for negotiation in upcoming SEF-ARATS meetings include the opening of reciprocal offices, an agreement on trade in goods, dispute settlement, and cooperation on environmental protection.

The 1992 consensus on “one China, with respective interpretations” has been the key to institutionalized cross-strait negotiations and exchanges, as well as the basis for the government’s promotion of cross-strait policy, Minister Hsia said. Maintaining peace is the responsibility of both sides of the strait, and the shared hope of the people, ruling party, and opposition parties in Taiwan, he pointed out.

For the last seven years, the government has put Taiwan first for the benefit of the people, maintaining the status quo of no unification, no independence, and no use of force under the framework of the ROC Constitution, Minister Hsia said, adding that he looks forward to the government’s continued application of these principles in promoting cross-strait relations.

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