Realizing that the timely conclusion of Economic Cooperation Framework Agreement (EFCA) with China is vital for the future of his country, President Ma, a US-educated lawyer, spares no effort, for the sake of 1993 Consensus, pushing for the normalization of cross-strait relations. In his inaugural speech, Ma stresses the importance of Three No Policy which covers: 1. No unification during his term in office 2.No crusade for independent, the words coined by Portuguese, disadvantage. A Taiwanese Scholar argue that China will be able to put strong pressure on Taiwan should EFCA is completed. We cannot say that we are having a prosperous democracy as our mouth is getting stuck. The conclusion of EFCA will be the end of Taiwan Economic Security Net, implying that China is going to enjoy both economic and political leverage over Taiwan. Moreover, the singing of EFCA will flood Taiwan with cheap Chinese goods which are setting the stage for losses of hundreds of thousands of job. Taiwan SMEs will be suffering from fierce competition from their counterparts. However, Ma used to say that Taiwan cannot afford not singing EFCA if it is to survive. We, as well as North Korea, have become the Orphan of Asia because we are excluded from the tendency of Free Trade Agreement, Regionalism and Globalization. Taiwan is now dealing a terrible blow as the ASEAN-China FTA is drawing to close. He went on that Taiwan is feeling the rotten-apple effect of the FTA. Taiwan will lose its competitive edge if we are unable to have our duties cut. Supporter of Ma policy argue that EFCA allows Taiwan Economy to be more competitive. The agreement, for Taiwan, is a short-term pain but long-term gain. Taiwan industries will be more profitable because they don’t have ship their products to Hong Kong and then to China, biggest export destination for Taiwan. EFCA enables Taiwan to have duty-free and direct access to Chinese Market and picks up its Output. Asked if China will allow Taiwan to negotiate with other countries, Ma replied that it is in every both country interests for Taiwan to become a pro-active citizen of global village. Currently, Taiwan is conducting first round of Free Trade Agreement with Singapore.
3.No use of force to resolve differences. There are loads of debates over the pros and cons of FTA with China. Some says that Ma economic policy is compromising Taiwan sovereignty by making Taiwan too dependent on Chinese Market. They believe that EFCA is working to Taiwan, also known as Ilha Formosa (Beautiful Island)