A landmark China-Taiwan trade deal scheduled to be signed in June could be pushed back as the two sides wrangle over import tariffs, the government and analysts said on Friday May 28.
Export-reliant Taiwan and economic powerhouse China, which began talking trade two years ago after decades of political hostilities, dispute how far Beijing should go in allowing import tariff cuts for the other side, analysts and local media say.
A list of 300 items set for tariff cuts is expected to anchor the trade deal, with auto parts, machinery and petrochemicals from the $390 billion Taiwan economy seen as winners.
Taiwan wants to add another 100 items, the details of which have worried Beijing, the local China Times newspaper said.
Taiwan President Ma Ying-jeou needs a strong deal to help his Nationalist Party win Nov. 27 local elections seen as a bellwether for the 2012 presidential race against the anti-China main opposition, analysts say.
China is Taiwan's biggest trade partner and number one foreign investor with bilateral trade estimated at around $100 billion.
Political opponents say ECFA could lead to overdependence on China, including an unwelcome flood of cheaper Chinese goods. (Source: Reuters, May 28, 2010).