The two parties will cut or eliminate import tariffs on more than 800 items. For Taiwan, the deal will be a big step towards economic recovery. Taiwan’s opposition is against it and will take to the streets to protest the island’s progressive economic subordination to the mainland.

Taipei (AsiaNews/Agencies) – China and Taiwan have agreed to an Economic Co-operation Framework Agreement (ECFA). The trade pact, which will be signed on 29 June in Chongqing, should increase trade between the two countries. Experts view it as the most important deal between the sides since they split in 1949.

Under its terms, 539 Taiwanese products—including auto parts, petrochemicals and fruit—worth US .8 billion will enter the Chinese market with reduced tariffs immediately and no tariffs within three years. Taiwan will slash its tariffs on 267 items worth US$ 2.86 billion for the mainland.

Both sides insist that it is a first step towards opening markets for some non-financial services, with the mainland opening up accounting, auditing, hospitals and aircraft maintenance and repair, and Taiwan removing restrictions on research and development, conferences and exhibitions, and computer bookings for air transport services.

Taiwan appears to be getting the better of the deal. Taipei insisted that the deal will increase trade, favour economic growth and maintain Taiwanese goods internationally competitive.

The mainland's senior negotiator, Zheng Lizhong, vice-chairman of the Association for Relations across the Taiwan Strait, said Beijing had agreed to the concessions "for the sake of promoting the status and economic competitiveness of the Chinese race".

In Taiwan, critics fear the pact could unleash a flood of cheaper Chinese goods, undermine local manufacturing and make the island too dependent on China. For the mainland, the island remains a rebel province and has more than 1,000 missiles pointed at it to stop any formal declaration of independence

Taiwan’s opposition parties are opposed to the deal and have announced a public demonstration against the agreement for tomorrow.

The mainland will not export any agricultural products or workers to Taiwan, and will offer zero tariffs on 18 farm products from Taiwan, an arrangement made to reduce the strong opposition from the pro-independence camp.

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