Taiwan-China trade pact takes effect

A pact that will reduce tariffs on hundreds of products traded between Taiwan and China took effect, a significant step for the Taiwanese president’s efforts to forge closer trade ties with Beijing.

The Economic Co-operation Framework Agreement both sides signed in late June also lets Taiwanese firms enter banking and insurance markets in China to further boost bilateral trade that amounts to $110bn (€86bn) dollars annually.

Taiwan’s Cabinet-level Mainland Affairs Council and China’s Ministry of Commerce announced the effective date of the pact on their websites yesterday, starting the tariff-reducing process.

Taiwan said the duties on some Chinese products will be lowered starting next year, while Beijing has not set a date when duties will be reduced on the Taiwanese products.