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by Staff Writers Taipei (AFP) Oct 27, 2011
A sweeping trade pact Taiwan signed with China last year has produced a smaller-than-expected boost to the island's exports, with growth slowing for key shipments, a report said Thursday. Although the Economic Cooperation Framework Agreement (ECFA) reduced or removed tariffs on 539 Taiwanese products, exports of those items only rose 14.4 percent year-on-year to $11.87 billion between January and July. The increase was a steep drop from a 42.0 percent annual rise for those products -- ranging from petrochemicals and auto parts to machinery -- in the same period of 2010, according to Taiwan's Business Weekly magazine. "The growth of Taiwan's exports to China during the first year of ECFA was actually weaker then before," the magazine said. The mass-circulation magazine's analysis of trade in the goods, which account for about 16 percent of the value of Taiwan's total China exports, form the most comprehensive public assessment yet of the trade deal's impact. The steep increase in 2010 was a one-off, since the year saw a rebound from the global financial crisis, but even compared with the long-term trend, this year's data are disappointing, according to the magazine. Exports of the 539 products rose by an average 17.5 percent annually for each of the years 2006 to 2008, it said, citing Chinese customs data. The report pointed out that rival South Korea's exports to China of the same products rose 28.9 percent to $16.9 billion in the first seven months of 2011. "The growth rate of South Korea's exports to China was twice that of Taiwan's, even without preferential tariffs," the magazine said. "The weak industries are still weak... and the strong are always strong. Lowering tariffs is not the key to competitiveness." Ties between Taipei and Beijing have improved markedly since Taiwan's President Ma Ying-jeou took office in 2008 on a platform of boosting trade and tourism with China. However, Beijing still considers Taiwan part of its territory awaiting reunification, by force if necessary, after their split in 1949 following a civil war.
Global Trade News
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