Taiwan-China ECFA On Course

by Mary Swire, Tax-News.com, Hong Kong

18 March 2010

The Taiwanese government hopes to sign the proposed economic cooperation framework agreement (ECFA) with China in June this year, following the exchange of ‘early harvest’ lists of products eligible for lower tariffs.

The Minister of Economic Affairs, Shih Yen-shiang, during a presentation to the country’s parliament, indicated that the government will negotiate to place, in Taiwan’s early harvest list, up to 500 items that are currently subject to the highest entry duties into China and, in its opinion, should be given favourable tariff treatment.

It is expected that the two parties will have to meet once or twice before the actual agreement of the lists – the first meeting being in the week beginning March 22. It is believed that the ECFA will be signed during the fifth round of such meetings in June.

At the American Chamber of Commerce in Taipei, Taiwan’s President, Ma Ying-jeou, also confirmed the government’s hope that the ECFA would be signed by June. He looked forward to the assistance that an ECFA would give for Taiwan to pursue free trade agreements with its other major trading partners.

He has been particularly concerned that the free trade agreement between China and the Association of Southeast Asian Nations, which was effective from January 1 this year, will adversely affect Taiwan’s trade prospects.

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