New tariff cuts would galvanise Taiwan's $416 billion export-dominated economy by binding it closer to economic powerhouse China and lift the island's financial markets.
Chinese President Hu Jintao and Taiwan officials agreed on the sidelines of Asia Pacific Economic Cooperation (APEC) forum last week in Japan to start discussions as early as next year, said Lien Chan, the island's APEC envoy.
"We hope that next year we can continue negotiations on those goods and on the service sector trade," said Lien, who met with Hu for just under an hour on Saturday.
"In terms of goods, there are still 5,000 left," he told a news conference in Taipei. "You really need a lot of time, so we hope we can speed things up. Mainland China's side's response toward this idea was one of approval."
Since the two sides signed an economic cooperation framework agreement (ECFA) in June, Taiwan has said it wants to fill the framework with more import tariff cuts that would save exporters money on shipments of high-tech products, machinery and other items to China's huge market.
ECFA earmarks more than 800 items for tariff cuts, heavily favouring Taiwan's much smaller economy. That round of cuts is due to take effect in January.
China and Taiwan, a self-ruled island claimed by Beijing as part of Chinese territory, meet formally twice a year to discuss mostly economic issues. The second 2010 meeting, expected next month in Taiwan, will cover an investment protection deal.
China sees tariff cuts as sweeteners to charm Taiwan into eventual political unification. (Reuters)
