August 18, 2010 11:12 AM

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Taiwan's Parliament approves wide-ranging trade pact with China

Taiwan's Parliament has approved a wide-ranging trade pact with China, despite a boycott by the pro-independence opposition. China is seen to have made the greater economic concessions for a deal meant to seal a political rapprochement. Taiwan will continue to bar labour from China, its biggest trading partner. But the deal has proved intensely divisive on the island and the Taiwanese government refused to grant a popular referendum on the issue. The Economic Cooperation Framework Agreement was passed with 68 votes for and none against in the 112-seat Parliament. Outside Parliament, protesters shouted slogans against the deal, including “Ma Ying-jeou is selling out Taiwan” and “ECFA means more unemployment”. The pact provides Taiwanese firms with access to banking and insurance markets in China, and cuts tariffs on hundreds of Chinese and Taiwanese products. The deal was signed by the Chinese and Taiwanese leaders in June

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