The economic framework agreement between Taiwan and China will become effective Sep.tember 12, the two governments said in separate statements, clearing the way to boost trade and investment ties between the civil war foes.
An agreement on intellectual property rights protection will also take effect Sept. 12, Taiwan's Mainland Affairs Council said on its website. China set aside its claim over the island to focus on commercial ties to seal the trade deal.
Taiwan and China signed the Economic Cooperation Framework Agreement on June 29 and it is aimed reducing tariffs on cross- strait trade and widening access to each other's markets.
Under the agreement, China agreed to cut duties on 539 items from Taiwan valued at $13.8 billion, or about 16 percent of imports from the island last year. Taiwan will lower tariffs on 267 items from China worth $2.86 billion, or about 10.5 percent of the country's shipments to Taiwan in 2009. Tariffs will be cut over two years in three stages to zero.
China will also open markets in 11 service sectors such as banking, securities, insurance, hospitals and accounting, while Taiwan agreed to offer wider access in seven areas, including banking and movies. (Source: Bloomberg News, Sep 11, 2010).