Taiwan will sign a trade accord with China next week after more than a year of talks, as warming cross-strait relations pave the way for deeper investment ties with the world's fastest-growing major economy. A fifth round of cross-strait talks will be held from June 28 to June 30 in the Chinese city of Chongqing, where the trade pact will be signed on June 29.
China and Taiwan reached an initial agreement on tariff reductions after talks in Beijing on June 13 on the Economic Cooperation Framework Agreement ( ECFA).
China will cut tariffs on 539 items from Taiwan worth $13.8 billion, or about 16 percent of Taiwan's 2009 exports to the mainland. Taiwan will cut tariffs on 267 items from China worth $2.86 billion, or about 10.5 percent of the country's shipments to Taiwan in 2009.
The opposition Democratic Progressive Party is organizing a rally to protest the accord on June 26, saying the agreement will give the government in Beijing too much clout over Taiwan, and may cost jobs by allowing cheaper Chinese goods to flood the island's market. (Source: Janet Ong, Business Week, Jun 24, 2010).