The ECFA effect helped cross-Strait trade grow significantly in the first quarter

The ECFA effect helped cross-Strait trade grow significantly in the first quarter Xinhuanet The "Cross-Strait Economic Cooperation Framework Agreement" (ECFA) that came into effect on New Year's Day this year has initially achieved results...

Xinhuanet

The Cross-Strait Economic Cooperation Framework Agreement (ECFA), which came into effect on New Year’s Day this year, has begun to show results. The latest data released by the Ministry of Commerce shows that cross-strait trade increased by nearly 20% year-on-year in the first quarter of this year, of which mainland exports to Taiwan increased by more than 30%.

Liu Xueqin, a researcher at the Institute of International Trade and Economic Cooperation of the Ministry of Commerce, told Xinhua News Agency reporters that ECFA's tax reduction on related products, the mainland's expansion of import trade support policies, the strong economic complementarity between the two sides, and the improvement of the world economic situation. These factors have jointly promoted the growth of cross-strait trade.

Data show that cross-strait trade volume in the first quarter was US$37.62 billion, a year-on-year increase of 19.7%. Among them, mainland China's exports to Taiwan were US$8.07 billion, a year-on-year increase of 34.4%; China's imports from Taiwan were US$29.55 billion, a year-on-year increase of 16.2%.

The official entry into force of the ECFA Early Harvest List further removes obstacles to cross-Strait economic and trade exchanges, and the benefits it brings are truly being passed on to enterprises on both sides of the Strait. According to regulations, 267 products exported from the mainland to Taiwan and 539 products exported from Taiwan to the mainland enjoy tax reduction arrangements.

Taiwan’s exports to the mainland are steadily increasing. Huang Yizhong, director of Taiwan Agricultural Products Specialty Sales Center Chain Store Holdings Co., Ltd., told Xinhua News Agency that the ECFA early harvest list allows more fruit varieties in Taiwan to enjoy tax reductions, and customs declaration ports have also increased accordingly, saving manpower and material costs. "Although the two to three months after the Spring Festival are the off-season for fruit sales, Taiwan's fruit sales in mainland China have increased by 20% compared to the same period last year."

According to analysis by Taiwan's economic authorities, thanks to the many business opportunities brought by ECFA, Taiwan's export growth target of 10% this year should be achieved, and private investment is expected to reach NT$1.1 trillion.