Taiwan-mainland 'early harvest' scheme cuts import tariffs

THE "early harvest" list of import tariff reductions under the Economic Cooperation Framework Agreement (ECFA) between Taiwan and the mainland has formally taken effect this month, reports Xinhua.


The "early harvest" list, a programme that started in September, after a long negotiation period, includes items that will enjoy preferential tariffs first under the EFCA.


Taiwan and China lowered import tariffs on more than 800 products under (ECFA) over a three-year period from January 2011. China cut duties on 557 items imported from Taiwan including fish and bicycles, an increase from 539 when the ECFA was signed in June, or 15 per cent of Taiwan's exports to China. Taiwan lowers tariffs on 267 items such as tea and cement from China as part of the "early harvest" list.


Twenty per cent of those products are to be immediately subject to zero tariffs when imported into mainland China. Taiwan hopes that the reduced tariffs will put it into a favourable position in the Chinese market, particularly when competing with products from Japan and South Korea.


The reduced list of Chinese products suggested that China had recognised the threat of its exports, particularly of agricultural items, overwhelming the Taiwanese market, which is relatively small in comparison to its own.


Under the agreement, the two sides have also agreed to continue their discussion on the further liberalisation of trade in goods, during the six months following its coming into effect.
(Source:http://www.schednet.com)