Sunday, June 23, 2013

China, Taiwan sign service trade agreement

Beijing: Setting aside their acrimonious differences, China and Taiwan today signed a trade agreement under which they will substantially open their service sectors to each other.


Negotiators of the two countries signed the service trade agreement in Shanghai today which was expected to further strengthen cross-Strait economic ties.

The agreement was inked by the Association for Relations Across the Taiwan Straits (ARATS) and the Straits Exchange Foundation (SEF). The ARATS and SEF are authorised by the Chinese mainland and Taiwan, respectively, to handle cross-Strait affairs.

Since 1949, China and Taiwan have remained separate after the Communist Party took over power in China and all those opposed formed a separate homeland in Taiwan.

China insists that Taiwan is part of it and the two sides have warmed up to each other with a host of measures in recent years. According to the agreement, the Chinese mainland will open 80 service sectors to Taiwan, while Taiwan will open 64 sectors to the mainland.

The sectors to be opened, include those related to commerce, telecommunications, construction, distribution, environment, health, tourism, entertainment, culture, sports, transportation and finance.

Last year the two sides, which have about USD 120 billion bilateral trade signed the long awaited agreements on investment protection and promotion.

ARATS President Chen Deming said today's agreement "marks a new level for cross-Strait economic and trade cooperation and complies with the trend of the world's economic development".

Under the service trade agreement, the threshold for market access will be lowered for service providers from both sides and more favourable policies will be formulated to boost cross-Strait cooperation in the service industry.

The agreement will further normalise and liberalise the service trade between the Chinese mainland and Taiwan, as well as promote the opening-up of mutual markets in the service sector, the ARATS and SEF said in a joint statement.

The agreement is one of several follow-up agreements to the Economic Cooperation Framework Agreement, a comprehensive cross-Strait economic pact signed in 2010. The pact is intended to reduce tariffs and commercial barriers between the Chinese mainland and Taiwan, state-run Xinhua news agency reported.

The service trade agreement has stipulated basic service trade principles, rights and obligations, the orientation of development and relevant working mechanisms for both sides. Also today, the ARATS and SEF vowed to proceed with other follow-up agreements to the ECFA.

Negotiations on a commodity trade agreement and a dispute settlement agreement are expected to be completed before the end of the year, and a pact to avoid double taxation is expected to be signed in the later half of this year.

indiatimes.com

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