10 February 2010 07:37 [Source: ICIS news]
By Judith Wang
SHANGHAI (ICIS news)--Taiwan may have missed the free trade agreement bus with China in January but petrochemical firms expect the fifth round of talks in May will help the country clinch the deal, industry sources said on Wednesday.
In January, ?xml:namespace>
The China-ASEAN FTA could reduce
The Taiwanese government hopes to ink the proposed free trade agreement with
“I hope the ECFA could be signed by the end of this year, making parts of products to enjoy zero duty from 2011, and finally extending to all the products in the next few years,” said Jack Shieh, executive manager of the Petrochemicals Industry Association of Taiwan (PIAT).
On an annual basis, a total of 10m tonnes of petrochemical raw materials are shipped from Taiwan to China, on which an average of 6.5% import duties apply.
Post-FTA, regional rivals in southeast Asia had an unfavourable advantage over Taiwanese petrochemical companies in the China market, said Wang Ching-Hua, secretary-general of Taiwan Synthetic Resins Manufacturers Association (TSRMA).
“If anti-dumping duties were still imposed by the mainlaind on some materials it would be even more difficult to export those products there,” Wang said.
This could force Taiwan-based firms to explore new markets, which would not be as lucrative as the huge
“We don’t want to lose
A zero-tariff agreement between
While the FTA agreement with ASEAN countries may reduce
“In my opinion, the margins of companies will be trimmed but export volumes will not likely fall sharply as the self-sufficiency ratio of the mainland’s petrochemical industry is only 70%,” Shieh said.
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