Trade winds are shifting! 🌬️ The Chinese mainland has announced it will suspend tariff concessions on 134 products from the Taiwan region starting June 15. This move comes after the Taiwan region didn't lift trade restrictions on the mainland, according to a statement from the Customs Tariff Commission of the State Council released on Friday.
The affected items previously enjoyed preferential tariff rates under the Economic Cooperation Framework Agreement (ECFA), a pact signed in 2010 aimed at boosting trade by lowering barriers between the two sides. Think of it as a regional handshake 🤝 to encourage smoother economic ties, all based on the 1992 Consensus.
Back in December 2023, the Chinese mainland had already terminated ECFA tariff rates for some products from Taiwan, citing the region's unilateral and discriminatory trade restrictions against the mainland—a bit like taking away the fast pass at your favorite theme park because someone broke the rules! 🎢
Despite this, the Taiwan authorities haven't taken concrete steps to lift these restrictions. So, the Customs Tariff Commission decided to press pause again on tax reductions for more products from the Taiwan region, in line with the ECFA regulations.
This development could have ripple effects 🌊 on businesses and consumers alike, so it's definitely a story to keep an eye on!
Reference(s):
Mainland to suspend tariff reductions for 134 items from Taiwan region
cgtn.com
