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Experts say the historical ECFA signed today, will be a major boost for trade normalization between the Chinese mainland and Taiwan. The deal forms the basis for what some analysts say, will become a win-win economic situation. Yin Hang takes a look.
The two sides are putting unilateral, unbalanced trade behind them. They say, it severely hindered mutual economic cooperation.
Hua Xiaohong, an expert at the ECFA talks, says the pact helps open up mutual trade.
Hua Xiaohong, Professor of University of Int'l Business and Economics said "All of our researchers came to the same conclusion: the signing of the deal could bring benefits to both sides. No matter whether it's in terms of the GDP growth or trade margins. The expansion of trade output and employment increases, will also have positive effects on both sides."
The ECFA will end investment and trade barriers between the two sides, and build up an economic communication system.
Some experts insist the deal will also serve as a tool for both sides as they encounter economic transformations in post financial crisis.
Zhang Guanhua, Researcher of Institute of Taiwan Studies, CASS said "The deal highlights, firstly, the framework trade agreement. And secondly, reciprocal policies that exceed common WTO member policies. It will be conducive to free trade between both sides."
The ECFA signed today covers guidelines and principles. Individual agreements concerning the trade of goods and services will be signed later.
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