TAIWAN AND CHINA SIGN LANDMARK TRADE AGREEMENT
Baku, June 29 (AZERTAC). China and Taiwan have signed a historic trade pact, seen as the most significant agreement since civil war split the two governments 60 years ago, according to BBC.
The Economic Co-operation Framework Agreement (ECFA) removes tariffs on hundreds of products.
It could boost bilateral trade that already totals $110bn (£73bn) a year.
Correspondents say that, economically, the deal favours Taiwan but that Beijing hopes for political gains in its long-standing unification campaign.
The deal is seen as the culmination of efforts by Taiwan`s President Ma Ying-jeou, elected two years ago with a vow to reduce tension with the mainland.
The deal was signed in the mainland city of Chongqing and was carried live on state television.
Taiwan`s envoy Chiang Pin-kung said the agreement was "a critical moment in the development of long-term relations".
His Beijing counterpart, Chen Yunlin, said the pact was an agreement of "equal consultation and mutual benefits".
The pair exchanged gifts and joined in a toast at the ceremony.
The deal is seen as being most economically beneficial to export-reliant Taiwan.
At the moment $80bn in goods flows to China, and $30bn to Taiwan.
Almost $14bn worth of Taiwanese goods exported to China will have their tariffs reduced or removed.
Taiwanese companies will also gain access to a number of mainland service sectors, including banking and insurance.
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