China and Taiwan Sign Historic Trade Pact
June 29, 2010
(ChattahBox) – After several generations of tension following a civil war between the two nations, China and Taiwan have signed a historic trade pact that is being called one of the most important economic moves in recent history.
The pact is in response to tariffs that have been in place on hundreds of products traded between the two nations for the last 60 years, which will now be removed thanks to the Economic Co-operation Framework Agreement (ECFA).
This deal could lead to serious economic benefits for Taiwan, which has suffered under the tariffs that saw it losing mass profits on an annual basis.
As for China, there isn’t going to be as much of a financial payback. But according to the BBC, the government likely hopes that the move will foster goodwill in the people, and bring about political benefits as part of its’ unification campaign.
The bilateral profits are already at $110 billion a year, but the ECFA signing will cause a serious boost in those earnings.