Taiwan Affairs Office ECFA signing has achieved significant benefits in the past five years, benefiting the LED industry

At a regular press conference on the 24th, spokesperson of the Taiwan Affairs Office of the State Council, Ma Xiaoguang, introduced the remarkable results achieved in the five years since the signing of the Cross-Strait Economic Cooperation Framework Agreement (ECFA). He hoped that the two sides would complete the effective procedures of the signed agreement and the negotiation of various follow-up agreements as soon as possible, so as to create more development opportunities for mutually beneficial cooperation for compatriots on both sides of the Taiwan Strait.

He said that in the five years since the signing of ECFA, positive progress has been made in early harvest of goods trade, early harvest of service trade, investment protection and promotion, industrial cooperation, customs cooperation, cooperation with small and medium-sized enterprises, mutual establishment of offices by economic and trade associations, and the signing of follow-up agreements. It has brought tangible benefits to compatriots on both sides of the Taiwan Strait, and has also brought mutually beneficial and win-win effects to cross-strait economic cooperation.

Early harvest products under the ECFA Goods Trade Agreement have all been reduced to zero tariffs starting from January 1, 2013. As of the end of March this year, the mainland has imported a total of US$38 billion of goods from Taiwan that enjoy ECFA tariff preferences, with tariff reductions and exemptions of 14.15 billion yuan. According to Taiwan Customs statistics, the mainland has exported a total of US$6.47 billion of goods to Taiwan that enjoy ECFA tariff preferences, and enjoy tariff preferences of NT$7.28 billion (approximately US$240 million).

A total of 46 financial companies and 321 non-financial companies in Taiwan use the early harvest preferential policy to provide services in the mainland, and 3 financial companies and 141 non-financial companies in the mainland use the early harvest preferential policy to provide services in Taiwan. The Cross-Strait Economic Cooperation and Development Working Group on Industrial Cooperation consists of eight industrial groups including automobiles, wireless cities, displays, LED lighting, and e-commerce to promote cooperation in pilot projects and major projects. The cross-strait customs electronic information exchange system has been put into operation, and the efficiency of customs clearance of cross-strait goods has been greatly improved. Customs on both sides of the Taiwan Strait have also jointly resolved some cases where ECFA preferential tax rates were not applicable due to third-party trade, allowing more operators to enjoy the benefits brought by ECFA.

Since 2011, the export value of goods under Taiwan’s early harvest list to the mainland has increased year by year, and the export growth rate is significantly higher than the overall export growth rate of goods. Among them, exports of early-harvest list products from the petrochemical industry, textile industry and machinery manufacturing industry to the mainland have maintained growth, and exports of major agricultural products to the mainland have increased significantly.

Ma Xiaoguang said that currently, in the ECFA follow-up agreement, the two sides have signed the Cross-Strait Investment Protection and Promotion Agreement, the Cross-Strait Customs Cooperation Agreement, the Cross-Strait Services Trade Agreement, and the cross-Strait Goods Trade and Dispute Settlement Agreement negotiations have also made progress to varying degrees. We hope that both parties will work together to meet each other halfway and complete the entry into force procedures of the signed agreement and negotiations on various follow-up agreements as soon as possible.