A free trade treaty set to be signed tomorrow by Beijing and Taipei will cut cross-strait tariffs, Bloomberg reported. The treaty, the first of its kind between the mainland and Taiwan governments, will end tariffs on 539 Taiwan products worth US$13.8 billion, making up 16% of the island’s exports to the mainland in 2009. Taipei will cut tariffs on 267 items worth US$2.86 billion, roughly 10.5% of mainland exports to Taiwan in 2009. Taiwan’s trade with the mainland rose 68% year-on-year in the first four months of 2010. The Economic Cooperation Framework Agreement is the latest indication of improving relations between the island and the mainland since the election of President Ma Ying-jeou in 2008.
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