China trade pact ushers in new era: Taiwan envoy

Taiwan's top China envoy on Monday hailed a far-reaching trade pact with the mainland as a historic agreement ushering in a new era for the former bitter rivals.

By Agencies | Jun 28, 2010, 10.00 AM IST

TAOYUAN, Taiwan: Taiwan's top China envoy on Monday hailed a far-reaching trade pact with the mainland as a historic agreement ushering in a new era for the former bitter rivals.

Chiang Ping-kun, chairman of the quasi-official Straits Exchange Foundation, said that the trade pact, known as the Economic Cooperation Framework Agreement (ECFA), was the most comprehensive deal ever to be forged by the two sides.

"The signing of ECFA will usher in a new era of mutual trust and negotiation for the two sides," he said before departing for China's western Chongqing city, where the agreement will be signed on Tuesday.

The agreement is seen as a critical step in the normalisation of economic ties between Taiwan and the mainland.

Cross-Strait tensions have reduced markedly since President Ma Ying-jeou of the Beijing-friendly Kuomintang party came to power in 2008.

Beijing still considers Taiwan part of its territory, although the island has governed itself since 1949 following a Chinese civil war.

The ECFA will lead to preferential tariffs for more than 500 Taiwanese product categories in areas stretching from petrochemicals to textiles, while applying to about half as many Chinese items.

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