While the Asia-Pacific Economic Co-operation (Apec) is an indispensable regional forum for Taiwan, the island nation is pinning its hopes on completing the Economic Co-operation Framework Agreement (ECFA) with mainland China next year, said Lien Chan, Taiwan's head of its Apec delegation.

Former vice-president Mr Lien said yesterday the cross-straits ECFA pact would provide a platform for formal negotiation of a free trade area (FTA) with China and also open the door for Taiwan to begin FTA talks with ASEAN.

"We've completed a series of informal discussions with China and it will be appropriate for both sides to discuss the time and venue to begin formal negotiations," said Mr Lien.

Apec is the only international forum where Taiwan can participate as an economic entity alongside China. Apec has already made a great contribution to regional stability, he said. "Apec is a key platform to push forward collective efforts to solve the financial crisis," he said.

Completing the ECFA by early next year will open the door for Taiwan to begin talks with ASEAN, he said.

An ASEAN-China FTA will be operational from January next year, while FTAs between ASEAN and Japan and South Korea are also in the pipeline, making Taiwan eager to catch up with its East Asian neighbours.

Taiwan has failed to become a dialogue partner with ASEAN due to the 10-member grouping's one-China policy.

Cheryl Tseng, director general of the Department of Overall Planning of Taiwan's Council for Economic Planning and Development, said it was crucial for Taiwan to develop FTAs with China and ASEAN.

The island state has only five FTAs with Latin American countries, which account for less than 1% of its exports.

ASEAN accounts for 12% of Taiwan's exports and China 28%, Hong Kong 12% and the US and Japan each make up about 10-12%, Ms Tseng said.

"We'll hopefully begin discussing the FTA with ASEAN partners next year. Presently, we have some specific agreements such as in investment and financial areas with Singapore," said Ms Tseng.

Exports provide about 65% of Taiwan's economy, so trade liberalisation and FTAs are key measures in light of the global downturn, she said.