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China suspends tariff concessions on 134 items under Taiwan trade deal

Yahoo | 31 May 2024

China suspends tariff concessions on 134 items under Taiwan trade deal

by Reuters

HONG KONG (Reuters) - China will reinstate tariffs on 134 items it imports from Taiwan next month after the Ministry of Finance said it would suspend concessions given on the items under a trade deal because Taiwan had not reciprocated.

The Cross-Strait Economic Cooperation Framework Agreement (ECFA) between China and Taiwan was initially signed in 2010.

China in December suspended tariff concessions for some products under the ECFA, but the finance ministry said the island has not reciprocated.

"The Taiwan region has unilaterally adopted discriminatory measures such as prohibiting and restricting the export of mainland products, which violates the provisions of the (agreement)," the finance ministry said.

The suspension of the tariff concessions are due to take place from June 15 and would apply to products imported from Taiwan including base oils, the ministry said.

Taiwan’s China-policy making Mainland Affairs Council said in a statement that the ECFA deal had benefited both sides’ companies since it was signed.

"We call on the mainland to deal with differences through constructive dialogue that does not involve political prerequisites, and stop economic and trade pressure."

China views democratically governed Taiwan as its own territory, a position the government in Taipei rejects.

Chen Binhua, spokesperson for the Taiwan Affairs Office, said Taiwan had unilaterally adopted discriminatory trade restrictions on the export of more than 2,500 mainland products.

This violated the ECFA’s provisions on reducing or abolishing tariffs.

 Fuente: Yahoo