Ma said Taiwan should strive to avoid being marginalized amid increasing integration of economic entities in the Asia-Pacific region.

The most crucial way to do so is to increase engagement with other regional countries and develop closer economic and trade ties, particularly by signing free trade agreements (FTAs), Ma said at the Presidential Office during a meeting with representatives of industrial associations from around the country.

It is important that a nation signs FTAs with its major trade partners, Ma said, adding that Taiwan's major trade partners are China, Japan, the United States, the Association of Southeast Asian Nations (ASEAN), the European Union, New Zealand and Australia, in that order.

"This is the reason why we seek to sign an ECFA, a cross-Taiwan Strait version of a free trade agreement, with China," he said.

Two-way trade between Taiwan and China totaled over US$130 billion in 2007 and exceeded US$132 billion in 2008 despite a global economic meltdown, according to the Ministry of Economic Affairs.

Ma reiterated that with two-way trade amounting to a volume so huge, it would be tremendously harmful to Taiwan should there be a lack of a wholesome framework under which bilateral commerce and investment can proceed fairly and efficiently.

He stressed that Taiwan will clinch an ECFA with China only when the country finds it necessary, the people support the idea and under the supervision of the Legislature.

"The administration will keep the country and its people informed at an opportune time about the contents of the agreement, " he reiterated.

He continued to say that the government is pushing for the signing of the ECFA only after it has weighed the pros and cons and found that signing such an agreement would work to Taiwan's advantage rather than disadvantage.

He, nevertheless, said he is uncertain whether other countries would sign FTAs with Taiwan after it clinched an ECFA with China.

"One thing is positive that the obstacles that Taiwan faces in its efforts to sign FTAs with other countries will be lessened once it signs the ECFA with China," he continued to say.

He also pointed out that some domestic industries, particularly footwear and towel manufacturing sectors, will be unavoidably affected by Taiwan's signing of an ECFA with China.

"We will put this under our considerations when seeking the ECFA and an 'early harvest list' will serve as a bumper to reduce adverse impacts on the domestic industries," he said.

The "early harvest list" refers to items to be subject to tariff concessions or full market opening as soon as the ECFA pact is signed.

Taiwan and China have already held four rounds of informal talks on the ECFA issue, all of which focused on principles related to an early harvest list under the agreement.

(By Garfie Lee and Deborah Kuo)