The Economic Cooperation Framework Agreement (ECFA) between Taiwan and China, which became effective from January1, 2011, is expected to reap better results this year and benefit Taiwanese exports, including textile exports.
This is because 90 percent of the 539 items on the priority list for tariff cuts will be traded duty-free from this year.
During January 1 to December 8, 2011, for which figures are available with Taiwan's Ministry of Economic Affairs (MOEA), Taiwan's textile exports to China grew to US$ 495 million with a 10.22 percent year-on-year growth.
Similarly, Taiwanese exports of petrochemical products to China surged by 59 percent year-on-year to US$ 2.858 billion, while machinery exports rose to US$ 900 million with 18.58 percent y-o-y growth.
As per MOEA statistics, the Taiwanese Government issued 35,404 certificates of origin to goods worth US$ 4.844 billion that were shipped to China during January 1 to December 8, last year. Of these, 34,464 certificates were issued in respect of industrial products valuing around US$ 4.823 billion.
According to customs statistics of China, the country's imports from Taiwan, growing at a year-on-year rate of 8.66 percent, touched US$ 114.16 billion during January-November last year. This included US$ 18.277 billion worth of products which were on ECFA prioritized duty-reduction list. Imports of these products grew by 11.32 percent during the period.
Fibre2fashion News Desk - India