Mainland China has announced that it will suspend tariff reductions on 134 products from the Taiwan region starting June 15. This decision follows the Taiwan region's inability to implement effective measures to remove trade restrictions imposed on the mainland.
The 134 items in question previously benefited from preferential tariff rates under the Economic Cooperation Framework Agreement (ECFA), a comprehensive pact established in 2010 aimed at reducing commercial barriers between the mainland and the Taiwan region. The agreement is based on the 1992 Consensus, which laid the groundwork for cross-strait economic cooperation.
However, in December 2023, the Customs Tariff Commission of the State Council terminated ECFA tariff rates for certain Taiwanese products. This move was in response to the Taiwan region's unilateral and discriminatory trade restrictions against the mainland, which breached the terms of ECFA.
Since the termination of some ECFA tariff rates, Taiwan authorities have not implemented concrete measures to lift these trade restrictions. Consequently, the commission has decided to halt further tax reductions on select products from the Taiwan region, as stipulated by the ECFA.
This suspension of tariff reductions underscores the ongoing tensions in cross-strait economic relations and highlights the importance of mutual cooperation in maintaining favorable trade terms.
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Mainland to suspend tariff reductions for 134 items from Taiwan region
cgtn.com
