They will sharply cut the costs of air and sea transportation between the mainland and Taiwan and facilitate cross-straits travels. Particularly, direct air and shipping services across the Taiwan Straits will boost Taiwan's transportation industry, as well as reduce operational costs of manufacturing and tourism industries in the island. Direct flights will shorten the time to travel from Taipei to Shanghai from 144 minutes to 82 minutes, with a reduction in fuel consumption by up to 50 percent. Airline companies and passengers will therefore save a total of NT$3 billion ($90 million) every year.

Direct air and shipping services will encourage more mainland tourists to visit Taiwan. At the same time, direct transportation links will also facilitate sales of Taiwan's agricultural and aquatic products to the mainland market. For example, the time for transporting Taiwan's fruits to Shanghai is expected to be halved to four days. It is predicted that Taiwan's fruits will see a sharp increase in sales on the mainland.

After direct transportation links are launched, Taiwan, with an advantageous geographic location, will see its status as an economic and trade hub in East Asia being greatly enhanced. More multinational companies are likely to locate their regional headquarters in Taiwan, thus preventing the island from being marginalized in East Asia's economic integration.

The signing of the four agreements by the ARATS and SEF is welcomed by the international community, Taiwan's businesses and the general public in the island. It helps to lift approval ratings of Taiwan authorities' cross-straits policy in the island's residents. The United States and the EU have shown appreciation for Ma's policy to ease cross-straits tension. Taiwan's seven major industrial and commercial associations believe that the four agreements will not only stabilize cross-straits relations but also help Taiwan to ward off negative effects of the worldwide financial crisis.

Hong Kong's Sing Tao Daily said in a report that the four agreements were a timely help and would serve as a locomotive to drag Taiwan's economy out of its current stagnation. According to a survey by Taiwan's China Times, 56 percent of respondents welcome the agreements between the ARATS and SEF while only 17 percent speak against them. Other surveys in the island show that about 50 percent of Taiwan residents believe the four agreements will have a positive impact on the island's development and 56 percent support the Taiwan authorities' efforts to push forward cross-straits exchanges. As for the Democratic Progressive Party's protest, 59 percent of those who were surveyed say they do not take it seriously.

Promising future

The four agreements on cross-straits direct transportation are the most significant fruit achieved in the 17-year negotiations between the ARATS and SEF and the biggest breakthrough in mainland-Taiwan relations in the previous 21 years after Taiwan authorities lifted a ban on mainland visits. They provide necessary conditions and a solid basis for the further development of bilateral ties.

First of all, the four agreements made the 30-year-old dream of direct air, shipping and postal services across the Taiwan Straits a reality, paving the way for the mainland and Taiwan to enhance economic cooperation. Direct transportation links are key to realizing economic and trade normalization.

Direct transportation links will promote the integration of living environments across the straits, which will help to remove misunderstandings and narrow the psychological gap between people on both sides of the straits.

The positive impact of cross-straits interactions is also expected to strengthen the confidence and determination of leaders in the mainland and Taiwan to promote peaceful development of both sides.