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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World Taiwan-China pact to reduce tariffs takes effect AP - Sunday, September 12 Send IM Story Print TAIPEI, Taiwan – A pact that will reduce tariffs on hundreds of products traded between Taiwan and China took effect Sunday, a significant step for the Taiwanese president's efforts to forge closer trade ties with Beijing. The Economic Cooperation Framework Agreement both sides signed in late June also lets Taiwanese firms enter banking and insurance markets in China to further boost bilateral trade that amounts to $110 billion annually. Taiwan's Cabinet-level Mainland Affairs Council and China's Ministry of Commerce announced the effective date of the pact on their websites Saturday, starting the tariff-reducing process. Taiwan has said the duties on some Chinese products will be lowered starting next year, while Beijing has not set a date when duties will be reduced on the Taiwanese products. The agreement reduces Chinese tariffs on 539 Taiwanese products, including machine tools, textiles and car parts. Those products value around $13.8 billion, about 16 percent of the mainland's imports from the island in 2009. In return, Taiwan will slash duties on 267 Chinese items totaling $2.86 billion, about 10.5 percent of the mainland exports to the island last year. Among some of those products are agricultural produce and textiles. The tariffs are to be eliminated in three stages over the next two years, under the bilateral pact. Taiwanese President Ma Ying-jeou has hailed the pact as necessary to prevent Taiwan's economic marginalization as Beijing strengthens its commercial ties to its Asian neighbors and has said it would help reduce tensions between the island and mainland China. On Saturday, China's Ministry of Commerce highlighted the pact's paramount role in stimulating bilateral trade exchanges. "We believe the implementation of the pact will further promote exchanges and cooperation in cross-strait trade and help cross-strait economies develop together," Spokesman Yao Jian said in the statement on the ministry's website. Taiwan and China split amid civil war in 1949. Beijing continues to claim the island as part of its territory and threatens to attack if Taiwan moves to formalize independence. After taking office in May 2008, Ma has moved to improve relations between the sides to boost Taiwan's sluggish economy and avoid possible cross-strait conflicts. Recommend Send IM Story Print Related Articles Australia's NAB mulls 'all options' on AXA AFP - 18 minutes ago Sweeping Taiwan, China trade pact takes effect AFP - 44 minutes ago Komatsu to begin dump truck output in Russia-Nikkei Reuters - 47 minutes ago Taiwan turns plastic junk to 'green' gold AFP - 1 hour 8 minutes ago Pirates attack Japan ship, no crew injured-media Reuters - Sunday, September 12 News Search Top Stories Barclays chief hits back at 'casino banker' critics Doomsday warnings of US apocalypse gain ground Kim Clijsters defends US Open title Champion Klitschko knocks out Peter Dueling protests over New York mosque near Ground Zero More Top Stories » Related Full Coverage China Economychina economy All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended US pastor puts Koran-burning on hold Ceremonies in NY, Washington mark 9/11 anniversary Vitamin B 'could delay Alzheimer's onset' Recession has left huge hole: Obama Superbugs top focus of leading microbiology meet More Most Viewed » Climate: New study slashes estimate of icecap loss Earth's upper atmosphere shrinking, scientists say Tiger's ex breaks her silence on sex scandal US pastor puts Koran-burning on hold Japanese rider Tomizawa dies in San Marino Moto2 GP More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Yahoo! News Network Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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