BEIJING, June 29 (UPI) -- China and Taiwan Tuesday signed an extensive trade agreement designed to cut tariffs on a number of items and promote closer cross-Strait investments.
The two sides, which have been coming closer since Taiwanese President Ma Ying-jeou took office two years ago, signed the Economic Cooperation Framework Agreement in China's Chongqing city.
Representing the two sides were China's ARATS or Association of Relations Across the Taiwan Straits and Taiwan's SEF or Straits Exchange Foundation, charged with handling cross-Strait issues.
Under the 16-article agreement, the two sides agreed to "gradually reduce and remove trade and investment barriers and create a fair environment" in the two areas and provide for protection of investments to boost two-way capital flows.
Taiwan's Central News Agency reported follow-up meetings on issues related to goods and services will be held by a cross-Strait economic cooperation committee to be set up under the new agreement.
The head of Taiwan's Bureau of Foreign Trade said both sides agreed that negotiations on four agreements on goods, services, investment protection and dispute settlement will be conducted by the proposed committee.
The two sides resumed negotiations in June 2008 after a suspension that lasted 11 years, China's Xinhua news agency reported.
The Taipei Times reported Taiwan's opposition parties who are against the agreement fear it will encourage a flood of cheaper Chinese goods, which in turn could undermine Taiwanese jobs, hurt fragile industries and lock Taiwan into a "one China" market.
Communist China has never given up its sovereign claims over Taiwan. But the two sides have had separate governments for six decades.
