China-Taiwan FTA (ECFA), 2010

Translation released 21 September 2010

For core agreement, see below and attached. For annexes, please visit ECFA website: http://www.moea.gov.tw/Mns/populace/news/News.aspx?kind=1&menu_id=40&news_id=19723


[This translation is for reference only. The interpretation of the Cross-Straits Economic Cooperation Framework Agreement shall be based solely on the authentic copy in the Chinese language.]

Cross-Straits Economic Cooperation Framework Agreement

Preamble

The Straits Exchange Foundation and the Association for Relations Across the
Taiwan Straits, adhering to the principles of equality, reciprocity and progressiveness
and with a view to strengthening cross-Straits trade and economic relations,
Have agreed, in line with the basic principles of the World Trade Organization
(WTO) and in consideration of the economic conditions of the two Parties, to
gradually reduce or eliminate barriers to trade and investment for each other, create a
fair trade and investment environment, further advance cross-Straits trade and
investment relations by signing the Cross-Straits Economic Cooperation Framework
Agreement (hereinafter referred to as this Agreement), and establish a cooperation
mechanism beneficial to economic prosperity and development across the Straits.

The two Parties have agreed through consultations to the following:

Chapter 1

Article 1
Objectives

General Principles

The objectives of this Agreement are:
1. To strengthen and advance the economic, trade and investment cooperation
between the two Parties;
2. To promote further liberalization of trade in goods and services between the two
Parties and gradually establish fair, transparent and facilitative investment and
investment protection mechanisms;
3. To expand areas of economic cooperation and establish a cooperation mechanism.

Article 2
Cooperation Measures

The two Parties have agreed, in consideration of their economic conditions, to
take measures including but not limited to the following, in order to strengthen
cross-Straits economic exchange and cooperation:
1. Gradually reducing or eliminating tariff and non-tariff barriers to trade in a
substantial majority of goods between the two Parties;
2. Gradually reducing or eliminating restrictions on a large number of sectors in trade
in services between the two Parties;
3. Providing investment protection and promoting two-way investment;
4. Promoting trade and investment facilitation and industry exchanges and
cooperation.

Chapter 2

Article 3
Trade in Goods

Trade and Investment

1. The two Parties have agreed, on the basis of the Early Harvest for Trade in Goods
as stipulated in Article 7 of this Agreement, to conduct consultations on an
agreement on trade in goods no later than six months after the entry into force of
this Agreement, and expeditiously conclude such consultations.
2. The consultations on the agreement on trade in goods shall include, but not be
limited to:
(1) modalities for tariff reduction or elimination;
(2) rules of origin;
(3) customs procedures;
(4) non-tariff measures, including but not limited to technical barriers to trade
(TBT) and sanitary and phytosanitary (SPS) measures;
(5) trade remedy measures, including measures set forth in the Agreement on
Implementation of Article VI of the General Agreement on Tariffs and Trade
1994, the Agreement on Subsidies and Countervailing Measures and the
Agreement on Safeguards of the World Trade Organization, and the safeguard
measures between the two Parties applicable to the trade in goods between
the two Parties.
3. Goods included in the agreement on trade in goods pursuant to this Article shall be
divided into three categories: goods subject to immediate tariff elimination, goods
subject to phased tariff reduction, and exceptions or others.
4. Either Party may accelerate the implementation of tariff reduction at its discretion
on the basis of the commitments to tariff concessions in the agreement on trade in
goods.

Article 4
Trade in Services

1. The two Parties have agreed, on the basis of the Early Harvest for Trade in Services
as stipulated in Article 8, to conduct consultations on an agreement on trade in
services no later than six months after the entry into force of this Agreement, and
expeditiously conclude such consultations.
2. The consultations on the agreement on trade in services shall seek to:
(1) gradually reduce or eliminate restrictions on a large number of sectors in trade
in services between the two Parties;
(2) further increase the breadth and depth of trade in services;
(3) enhance cooperation in trade in services between the two Parties.
3. Either Party may accelerate the liberalization or elimination of restrictive measures
at its discretion on the basis of the commitments to liberalization in the agreement
on trade in services.

Article 5
Investment

1. The two Parties have agreed to conduct consultations on the matters referred to in
paragraph 2 of this Article within six months after the entry into force of this
Agreement, and expeditiously reach an agreement.
2. Such an agreement shall include, but not be limited to, the following:
(1) establishing an investment protection mechanism;
(2) increasing transparency on investment-related regulations;
(3) gradually reducing restrictions on mutual investments between the two Parties;
(4) promoting investment facilitation.

Chapter 3

Article 6
Economic Cooperation

Economic Cooperation

1. To enhance and expand the benefits of this Agreement, the two Parties have agreed
to strengthen cooperation in areas including, but not limited to, the following:
(1) intellectual property rights protection and cooperation;
(2) financial cooperation;
(3) trade promotion and facilitation;
(4) customs cooperation;
(5) e-commerce cooperation;
(6).discussion on the overall arrangements and key areas for industrial
cooperation, promotion of cooperation in major projects, and coordination of
the resolution of issues that may arise in the course of industrial cooperation
between the two Parties;
(7) promotion of small and medium-sized enterprises cooperation between the
two Parties, and enhancement of the competitiveness of these enterprises;
(8) promotion of the mutual establishment of offices by economic and trade
bodies of the two Parties.
2. The two Parties shall expeditiously conduct consultations on the specific programs
and contents of the cooperation matters listed in this Article.

Chapter 4

Article 7
Early Harvest

Early Harvest for Trade in Goods
1. To accelerate the realization of the objectives of this Agreement, the two Parties
have agreed to implement the Early Harvest Program with respect to the goods
listed in Annex I. The Early Harvest Program shall start to be implemented within
six months after the entry into force of this Agreement.
2. The Early Harvest Program for trade in goods shall be implemented in accordance
with the following rules:
(1) the two Parties shall implement the tariff reductions in accordance with the
product list and tariff reduction arrangements under the Early Harvest
stipulated in Annex I, unless their respective non-interim tariff rates generally
applied on imports from all other WTO members are lower, in which case
such rates shall apply;
(2) the products listed in Annex I of this Agreement shall be subject to the
Provisional Rules of Origin stipulated in Annex II. Each Party shall accord
preferential tariff treatment to the above-mentioned products that are
determined, pursuant to such Rules, as originating in the other Party upon
importation;
(3) the provisional trade remedy measures applicable to the products listed in
Annex I of this Agreement refer to measures provided for in subparagraph (5)
of paragraph 2 of Article 3 of this Agreement. The safeguard measures
between the two Parties are specified in Annex III of this Agreement.
3. As of the date of the entry into force of the agreement on trade in goods to be
reached by the two Parties pursuant to Article 3 of this Agreement, the Provisional
Rules of Origin stipulated in Annex II and the provisional trade remedy measures
provided for in subparagraph (3) of paragraph 2 of this Article shall cease to apply.

Article 8
Early Harvest for Trade in Services

1. To accelerate the realization of the objectives of this Agreement, the two Parties
have agreed to implement the Early Harvest Program on the sectors and
liberalization measures listed in Annex IV. The Early Harvest Program shall be
implemented expeditiously after the entry into force of this Agreement.
2. The Early Harvest Program for Trade in Services shall be implemented in
accordance with the following rules:
(1) each Party shall, in accordance with the Sectors and Liberalization Measures
Under the Early Harvest for Trade in Services in Annex IV, reduce or
eliminate the restrictive measures in force affecting the services and service
suppliers of the other Party;
(2) the definition of service suppliers stipulated in Annex V applies to the sectors
and liberalization measures with respect to trade in services in Annex IV of
this Agreement;
(3) as of the date of the entry into force of the agreement on trade in services to be
reached by the two Parties pursuant to Article 4 of this Agreement, the
definitions of service suppliers stipulated in Annex V of this Agreement shall
cease to apply;
(4) in the event that the implementation of the Early Harvest Program for Trade in
Services has caused a material adverse impact on the services sectors of one
Party, the affected Party may request consultations with the other Party to seek
a solution.

Chapter 5

Article 9
Exceptions

Other Provisions
No provision in this Agreement shall be interpreted to prevent either Party from
adopting or maintaining exception measures consistent with the rules of the World
Trade Organization.

Article 10
Dispute Settlement

1. The two Parties shall engage in consultations on the establishment of appropriate
dispute settlement procedures no later than six months after the entry into force of
this Agreement, and expeditiously reach an agreement in order to settle any dispute
arising from the interpretation, implementation and application of this Agreement.
2. Any dispute over the interpretation, implementation and application of this
Agreement prior to the date the dispute settlement agreement mentioned in
paragraph 1 of this Article enters into force shall be resolved through consultations
by the two Parties or in an appropriate manner by the Cross-Straits Economic
Cooperation Committee to be established in accordance with Article 11 of this
Agreement.

Article 11
Institutional Arrangements

1. The two Parties shall establish a Cross-Straits Economic Cooperation Committee
(hereinafter referred to as the Committee), which consists of representatives
designated by the two Parties. The Committee shall be responsible for handling
matters relating to this Agreement, including but not limited to:
(1) concluding consultations necessary for the attainment of the objectives of this
Agreement;
(2) monitoring and evaluating the implementation of this Agreement;
(3) interpreting the provisions of this Agreement;
(4) notifying important economic and trade information;
(5) settling any dispute over the interpretation, implementation and application of
this Agreement in accordance with Article 10 of this Agreement.
2. The Committee may set up working group(s) as needed to handle matters in
specific areas pertaining to this Agreement, under the supervision of the
Committee.
3. The Committee will convene a regular meeting on a semi-annual basis and may call
ad hoc meeting(s) when necessary with consent of the two Parties.
4. Matters related to this Agreement shall be communicated through contact persons
designated by the competent authorities of the two Parties.

Article 12
Documentation Formats

The two Parties shall use the agreed documentation formats for communication of matters arising from this Agreement.

Article 13
Annexes and Subsequent Agreements

All annexes to this Agreement and subsequent agreements signed in accordance
with this Agreement shall be parts of this Agreement.

Article 14
Amendments

Amendments to this Agreement shall be subject to consent through consultations
between, and confirmation in writing by, the two Parties.

Article 15
Entry into Force

After the signing of this Agreement, the two Parties shall complete the relevant
procedures respectively and notify each other in writing. This Agreement shall enter
into force as of the day following the date that both Parties have received such
notification from each other.

Article 16
Termination

1. The Party terminating this Agreement shall notify the other Party in writing. The
two Parties shall start consultations within 30 days from the date the termination
notice is issued. In case the consultations fail to reach a consensus, this Agreement
shall be terminated on the 180th day from the date the termination notice is issued
by the notifying Party.
2. Within 30 days from the date of termination of this Agreement, the two Parties
shall engage in consultations on issues arising from the termination.

This Agreement is signed in quadruplicate on this 29th day of June [2010] with
each Party retaining two copies. The different wording of the corresponding text of
this Agreement shall carry the same meaning, and all four copies are equally
authentic.

- Annex I: Product List and Tariff Reduction Arrangements Under the Early Harvest for Trade in Goods
- Annex II: Provisional Rules of Origin Applicable to Products Under the Early
Harvest for Trade in Goods
- Annex III: Safeguard Measures Between the Two Parties Applicable to Products
Under the Early Harvest for Trade in Goods
- Annex IV: Sectors and Liberalization Measures Under the Early Harvest for Trade
in Services
- Annex V: Definitions of Service Suppliers Applicable to Sectors and Liberalization
Measures Under the Early Harvest for Trade in Services

Chairman
Straits Exchange Foundation

President
Association for Relations Across the Taiwan Straits

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Comments

  • China-Taiwan FTA (ECFA), 201021-August-2011 | philipdzo

    Correction: presented to W[T]O

    Reply to this message
  • China-Taiwan FTA (ECFA), 201021-August-2011 | philipdzo

    [This translation is for reference only. The interpretation of the Cross-Straits Economic Cooperation Framework Agreement shall be based solely on the authentic copy in the Chinese language.]

    >>There’s no official English version, no neutral 3rd party wittnessing, not presented to WHO......? Is it legal at all? Is it binding at all?

    Reply to this message