The Economic Cooperation Framework Agreement (ECFA) between Mainland China and Taiwan is scheduled to be signed on June 29 in the city of Chongqing, after trade officials from both sides finalized the deal yesterday. This unprecedented agreement will ease cross-strait tension, and bring economic ties between the two parties closer than ever.
“This would not be imaginable two or three years ago,” Carl Chien, senior country officer at JPMorgan Chase & Co. said on a phone interview. “The mere fact that the two governments are signing some kind of treaty is already a record-breaking thing,” he added.
Under the ECFA, China agrees to cut tariffs on 539 items from Taiwan, valued at $13.8 billion, or about 16 percent of the island’s 2009 exports to the mainland. Likewise, Taiwan will cut tariffs on 267 items from China, which worth $2.86 billion, or about 10.5 percent of the country’s 2009 export to Taiwan. Moreover, the agreement will allow Taiwan investors access to mainland’s 11 service sectors, including banking, accounting, insurance and hospitals.
China Trade Pact Draws Taiwan Into Economic Embrace [Bloomberg Businessweek, 28 June 2010]
China, Taiwan pact today [Today, 29 June 2010]