Beijing, June 15 – The Chinese mainland announced that it will suspend tariff concessions on 134 products imported from the Taiwan region, effective June 15. The decision comes after the Taiwan authorities failed to implement effective measures to lift trade restrictions imposed on the mainland.
The products in question previously enjoyed preferential tariff rates under the Economic Cooperation Framework Agreement (ECFA), a comprehensive economic pact signed between the Chinese mainland and the Taiwan region in 2010. The ECFA, based on the 1992 Consensus, was designed to lower commercial barriers and promote cross-strait economic collaboration.
In December 2022, the Customs Tariff Commission of the State Council had already terminated ECFA tariff rates for certain products from Taiwan due to what it described as unilateral and discriminatory trade restrictions against the mainland, which breached the terms of the ECFA.
Despite this action, the Taiwan authorities, led by the Democratic Progressive Party, have not taken concrete steps to address these trade barriers. As a result, the commission has decided to further halt tariff reductions on additional products from the Taiwan region, citing provisions within the ECFA that allow such measures.
This move is expected to impact businesses and investors engaged in cross-strait trade, highlighting the ongoing complexities in economic relations between the Chinese mainland and the Taiwan region. Analysts are closely monitoring the situation for potential implications on regional markets and supply chains.
The suspension underscores the importance of adherence to mutual agreements in fostering stable economic ties. Stakeholders on both sides are hopeful for a resolution that will restore favorable trade conditions and support the prosperity of businesses and consumers alike.
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Mainland to suspend tariff reductions for 134 items from Taiwan region
cgtn.com
