Mainland mulls suspension of tariff preferences for Taiwan products in reaction to ECFA violation

Mainland mulls suspension of tariff preferences for Taiwan products in reaction to ECFA violation

An official from Taiwan Affairs Office of the State Council said on Friday that a recent investigation on Taiwan region’s trade restrictions showed the island’s trade restrictive measures against the mainland violate requirements of Economic Cooperation Framework Agreement (ECFA) on promoting the normalization, institutionalization and liberalization of cross-Straits economic relations, and it will support the study on the suspension or partial suspension of tariff preferences given to products from Taiwan region under the ECFA.

Zhu Fenglian, a spokesperson for the Taiwan Affairs Office of the State Council, on Friday said the probe into Taiwan region’s trade restrictions showed the region has violated the ECFA clause of progressively reducing or eliminating trade barriers on the majority of goods traded between the two sides.

“We support relevant authorities to study and take corresponding measures in accordance with relevant regulations in light of the investigation of trade barriers,” Zhu said.

Signed in June 2010, ECFA is a preferential trade deal between the mainland and Taiwan that aims to reduce tariffs and commercial barriers between the two sides.

However, since the DPP came to power, they have not only failed to take practical measures to lift discriminatory trade restrictions on the mainland, but also continued to intensify the restrictions, Zhu said.

By unilaterally restricting the import of a large number of mainland products, the DPP authorities are suspected of violating WTO rules, harming the interests of relevant industries and enterprises on the mainland, and also harming the interests of Taiwan consumers, Zhu said, citing the finding of a preliminary investigation on Taiwan region’s trade barrier investigation on Thursday.

Following a preliminary investigation, the Taiwan region’s restrictions on products from the mainland are suspected of violating WTO rules, China’s Ministry of Commerce (MOFCOM) said on Thursday.

It is suspected that the restrictions are in violation of WTO rules such as those dictating non-discrimination and the general elimination of quantitative restrictions, according to the ministry.

The MOFCOM launched the investigation on April 12 after a trade barrier investigation request was submitted by three mainland import and export trade chambers in March.

The number of prohibited import items from the mainland has been expanding, with products involved in the investigation growing from 2,455 when the request was filed to 2,509 at present, according to the MOFCOM.

The restrictions have impacted the mainland’s petrochemical, textile, electromechanical equipment and automobile sectors, among others, and many quality and affordable agricultural products and daily necessities from the mainland cannot be exported to Taiwan, hurting the interests of related export enterprises, MOFCOM said.

The enterprises and trade associations that took part in the investigation have called on the Taiwan region to lift its restrictions. The trade barrier investigation will continue, and its results will be released at an appropriate time, MOFCOM said.

(Global Times)

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