Taiwan Pushing Cross-Strait Trade Agreement With China

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

29 October 2009

Taiwan’s Minister of Economic Affairs, Shih Yen-shiang, has said that informal discussions will be held with China early in November to prepare for further negotiations on an economic cooperation framework agreement (ECFA) between the two sides.

He has been quoted as revealing that the two states will, for the first time, exchange “early-harvest lists” of products or services that each side believes could qualify for immediate tariff concessions or liberalized trading conditions within the ECFA. Such a list could include services, such as banking, research and development and logistics, and goods, such as textiles, petrochemicals and machine tools, according to reports.

Shih Yen-shiang’s comments came after Wang Yi, director of China’s Taiwan Affairs Office, was also said to have confirmed that China was ready to begin proper negotiations on an ECFA with Taiwan by the end of the year.

This would tally with previous expectations that Taiwan and China are scheduled to hold a fourth round of official talks in December and potentially initial subsidiary agreements on fishing, agricultural inspection, industrial standards and double-taxation avoidance.

Taiwan is eager for a quick conclusion to the ECFA negotiations in a fifth round of negotiations as early as possible next year.

It reportedly hopes, in that way, to reduce the impact on Taiwanese industry of the trade agreement between the Association of South East Asian Nations and China, which is expected come into effect in January.

Recommended