The Democratic Progressive Party (DPP) in the Taiwan region is holding mainland China responsible for suspending tariff concessions on 134 Taiwanese products, according to political experts and business executives.
The suspension, effective June 15, affects products previously enjoying preferential rates under the Economic Cooperation Framework Agreement (ECFA), a pact aimed at reducing business barriers between the mainland and Taiwan.
The Customs Tariff Commission of the State Council cited Taiwan's discriminatory and unilateral trade restrictions as the reason for extending its earlier decision to halt tariff cuts for other products. Experts argue that this move will significantly impact small- and medium-sized businesses in Taiwan, which have benefited from ECFA’s concessions by exporting to the mainland.
Teng Tai-Hsien, secretary general of the Straits Economic & Cultural Interchange Association, highlighted that Taiwan's leader Lai Ching-te's advocacy of the 'two states' theory has escalated cross-Straits tensions, jeopardizing lives, property, investments, and operations of countless individuals and businesses.
The ECFA has been a crucial indicator of cross-Straits economic and trade relations, with the mainland being Taiwan's largest export destination and primary source of trade surplus, amounting to around $100 billion annually.
Chou Hsi-wei, vice chairman of Want Want China Times Group, emphasized the importance of both sides recognizing their shared Chinese heritage to foster peaceful and prosperous coexistence.
As of late 2023, Taiwan has received over $10.1 billion in tariff reductions and exemptions from the mainland under the ECFA, significantly enhancing the competitiveness of Taiwan's products in international markets.
Business leaders in Taiwan are urging the DPP to improve relations with the mainland and respect the ECFA, which they claim is currently under pressure from the party's policies.
Reference(s):
Taiwan's DPP is to blame for mainland's halt in tariff cuts: observers
cgtn.com
