Mainland China and Taiwan signed a landmark trade pact on June 29, the agreement aims to further enhance the integration of both economies.

The pact, known as the Economic Cooperation Framework Agreement (ECFA), will apply to trade in goods and service, investment and also strengthens cooperation in several other areas.

In terms of trade in goods, both sides have agreed to reduce or eliminate tariffs and will continue to deliberate on custom procedures, non-tariff measures and trade remedy measures.

Similarly, both sides have agreed to reduce or eliminate restrictions in terms of industry access to various service sectors.

In addition, both sides agreed to continue to deepen trade in services and increase cooperation in this area.

As for investment, the mainland and Taiwan agreed, in principle, to establish investment protection mechanism and reduce restrictions on investment.

Another round of negotiations on how to implement the above-mentioned principles will also be launched and both sides have agreed to the goal of reaching a detailed agreement within six months.

Furthermore, both sides also agreed, in principle, to deepen economic cooperation in relation to protection of intellectual property, finance, customs, e-business, industrial projects and small-and-medium-sized enterprises as well as  cooperation on the establishing of business or industrial associations on the mainland and in Taiwan.

In addition, both sides will jointly set up a Cross-Strait Economic Cooperation Committee to supervise the implementation of the conditions agreed to in the pact.

Links and Sources
Xinhua: Full Text of Agreement (Chinese)
Sina: Special Feature on the ECFA (Chinese)