Mainland, Taiwan reduce import tariffs to implement ECFA

The special ECFA counters are opened by the Xiamen Customs to give priority to commodities listed in the cross-Strait trade pact, at Xiamen Customs in Xiamen city, East China's Fujian province, Jan 1, 2011. [Photo/Xinhua]

The ECFA, signed in June 2010 and becoming effective in September, has been hailed as a milestone for realizing the normalization, institutionalization and liberalization of cross-Strait economic relations.

"The implementation of the early harvest program is only the first step in implementing the ECFA. As negotiations continue, cross-Strait trade will increase and more people will benefit," Yang Yi, the State Council's Taiwan Affairs Office spokesman, said in Beijing Wednesday.

Prof. Jang Wu-Yue, an expert of cross-Strait relations at Taiwan's Tamkang University, said he believed the implementation of the ECFA would give an impetus to service sectors on both sides, especially for Taiwan's service sectors which contribute to 70 percent of its GDP.

"Taiwan's high-quality service industries will provide more choices for customers on the Chinese mainland," he said.

As a result of ECFA, cross-Strait investment will be broadened from the manufacturing industry to others, from low value-added industries to high value-added industries, he added.

The Chinese mainland opened five of its service sectors - accounting, computer services, conference-providing services, research and development and its film industry - in October 2010.

Another six mainland service sectors - design, hospitals, maintenance of civil aviation planes, banking, securities and insurance - were opened Saturday.

Chinese mainland and Taiwan negotiators signed the landmark ECFA in Chongqing Municipality on June 29, 2010.

It is estimated that about 260,000 new jobs will be created in the island by the ECFA's early harvest program, which will benefit about 23,000 small and medium-sized enterprises in the island.

According to statistics released by both sides, the mainland has been Taiwan's largest trading partner and export market since 2007.