The PRC and Taiwan will mutually reduce their import duties on certain goods starting 2011. The reductions have been agreed upon in the Economic Cooperation Framework Agreement (ECFA) which was ratified earlier this year on June 29.
For imports from Taiwan into the PRC, 539 tariff positions are affected, which amounted in 2009 to a value of nearly U.S. $ 14 billion; in the other direction, 267 customs tariff positions. The customs duties on the items in question are supposed to be decreased down to 0 % by 2013.
One important component of the ECFA is the early beneficiaries list (Early Harvest List). In it, both sides have agreed on sectors and goods for which tariffs will be reduced starting from 1.1.11.
You can download the original text of the ECFA and its appendices (in Chinese and English) as pdf-files from the www.ecfa.org.tw website.
From the perspective of the Taiwanese Government, the ECFA is necessary for not becoming marginalized in regional economic relations, especially not to fall behind regional competitors in trade with the PRC. About two-fifths of Taiwan’s exports go to China, Hong Kong and Macao. Approximately one-third of the 200 of the largest exporting companies in the PRC are Taiwanese. The Taiwanese opposition, however, sees the ECFA as a sellout of Taiwan’s interests.
History and Background: On the taiwandc.org website are links to a number of articles and commentaries concerning ECFA in English dated from 18. Oct. 2008 until 5. Sept. 2010.
Further background information is available on Wikipedia: Economic Cooperation Framework Agreement
Remark: The debate on the ECFA started to heat up in Taiwan in February 2009.
Image: Voice of America
