Mainland's Taiwan affairs office supports study on suspension of tariff preferences for Taiwan products

A Chinese mainland spokesperson on Friday voiced support for the Ministry of Commerce (MOC) in mulling over the suspension or partial suspension of tariff preferences for Taiwan products under the Economic Cooperation Framework Agreement (ECFA) in accordance with rules.

According to preliminary results from a trade barrier investigation launched by the MOC, Taiwan's restrictions on products from the mainland did not comply with the requirements for advancing the normalization, institutionalization and liberation of economic ties across the Taiwan Strait, which were included in the ECFA, said Zhu Fenglian, spokesperson for the Taiwan Affairs Office of the State Council, in response to a media inquiry.

The restrictions went against the ECFA provision of "gradually reducing or eliminating tariff and non-tariff barriers to trade in a substantial majority of goods between the two Parties," Zhu said.

The unilateral restrictions by Taiwan's Democratic Progressive Party (DPP) authority are suspected to have also violated WTO principles, including non-discrimination and the general elimination of quantitative restrictions, and damaged the interests of relevant industries and companies on the mainland as well as the interests of consumers in Taiwan, she said, citing the MOC preliminary results.

In June 2010, the mainland and Taiwan signed the cross-Strait ECFA based on the 1992 Consensus, which has produced concrete benefits for both sides, especially Taiwan companies and people, Zhu said.

Instead of taking measures to lift the trade restrictions against the mainland, the DPP authority, however, has done the opposite to make things even worse since taking office, for instance raising the number of prohibited import items from the mainland, she added.