The future of the Economic Cooperation Framework Agreement (ECFA) is now tied to the policies of Taiwan authorities, as the Chinese mainland has announced it will halt tariff concessions for certain Taiwanese products starting June 15, 2024.
During a press conference on May 31, Chen Binhua, spokesperson for the State Council Taiwan Affairs Office, expressed support for this decision. He highlighted economic considerations, noting that the current trade relationship across the Taiwan Strait is unbalanced and placing primary responsibility on the Democratic Progressive Party (DPP) authorities.
Since the implementation of the ECFA's \"Early Harvest Program\" on January 1, 2011, economic and trade exchanges between the Chinese mainland and Taiwan have grown significantly. Cross-Strait trade volume has more than doubled over the past decade, increasing from $145.4 billion in 2010 to $319.7 billion in 2022.
As a comprehensive economic pact, the ECFA has notably boosted Taiwan's economic development. According to recent statistics from Taiwan authorities, the island has secured over $10.1 billion in tariff reductions under ECFA from 2011 to the end of 2023. In contrast, the mainland obtained less than $1.1 billion in tariff concessions from Taiwan during the same period. Additionally, Taiwan's product exports to the mainland have maintained rapid growth.
This advantage stems from the preferential measures the Chinese mainland has extended to Taiwan's economy and trade over the past decade, positioning Taiwan more favorably in its economic ties with the mainland.
Reference(s):
cgtn.com
