7th ECC meeting concludes in Taipei

2015-02-02

The seventh cross-strait Economic Cooperation Committee meeting wrapped up Jan. 29 in Taipei City, with the one-day event focusing on a range of key trade issues.

Led by Deputy Minister of Economic Affairs Cho Shih-chao, the Taiwan delegation prioritized talks on small and medium enterprises, as well as reviewing implementation results of the Cross-Straits Economic Cooperation Framework Agreement (ECFA).

Tariff concessions for Taiwan merchandise exports under the ECFA early harvest list topped US$800 million last year, reaching US$2.2 billion since the arrangement took effect at the beginning of 2011. Savings for imports from mainland China were US$82 million and US$220 million for these two periods, according to the MOEA.

“Taiwan’s SME and agricultural sectors were the primary beneficiaries of this positive development,” an MOEA official said, citing statistics showing nearly 50 percent of exports came from firms producing such items as auto parts, hand tools, small home appliances and underwear.

The official said Taiwan’s 539 export items under the scheme account for 7 percent of mainland Chinese imports. “Once a cross-strait trade in goods pact takes effect, even greater economic benefits will be on offer to our SMEs.”

Regarding trade in services, the official said as of the end of last month, 287 Taiwan firms in nonfinancial sectors—over half of which are SMEs—pledged investment of US$1.1 billion in mainland China, while reciprocal investment from the other side of the strait was US$180 million.

Taipei and Beijing also discussed collaboration on customs clearance and food safety, as well as future agendas for the six ECFA working groups.

Both sides agreed to reduce tariffs on merchandise exports under five schemes, and will start arranging for the working group’s 10th round of meetings after the Lunar New Year holiday.

In addition, Taiwan and mainland China agreed on further promoting exchanges in several service sectors and industrial collaboration spanning automobiles, cold chain logistics, display panels, light-emitting diodes, pharmaceuticals, textiles and wireless cities.

Other progress included discussing the opening of more reciprocal trade offices by key business associations later this year, and establishing a new working group to strengthen collaboration between SMEs from Taiwan and mainland China.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=226982&CtNode=413)