Taiwan-China ECFA deal to deduct tariffs on 500 goods

14 Jun '10

2 min read

Almost 500 Taiwanese textile goods, petrochemical, machinery and auto parts will be the first goods to profit from cut in tariffs, under a trade deal with China, as declared by the China's Taiwan affairs head, Wang Yi.

Yi announced this to the Taiwanese delegates, during the third round of expert-level discussions on the Economic Co-operation Framework Agreement (ECFA). Yi assured that the deal would be inked by June end.

Yi's declaration are the recent and most clearest confirmation received in the market till now, for the content of the deal and the time for signing the same, both subjects of speculations during the last couple of weeks.

While cut in tariff for petrochemical goods could be around 60 percent, those for textile can be almost 80 percent. Hence, all the initial goods listed for tariff reduction, named under the early harvest list, account for about 15 percent of Taiwan's exports to China.

As of today, Taiwan is dependent on ECFA for opening doors to trade deals with other vital economies such as US, Japan and Southeast Asian countries, permitting its exports of $390 billion economy to remain competitive with regional competitors.

But there are also a few experts who dread, that the deal might flood Taiwan's markets with cheap Chinese imports, destroying Taiwan's economy.

As of now, the two nations have reached a consensus on the agreement's texts and both nations will soon finalize on a list of products and services, so as to benefit from the early harvest plan during the following discussions.

Fibre2Fashion News Desk - India

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