15 June 2010 04:33 [Source: ICIS news]
By Nurluqman Suratman
SINGAPORE (ICIS news)--Polypropylene (PP) and polyvinyl chloride (PVC) are most likely to be excluded in the "early harvest list" of a proposed trade pact between Taiwan and China, analysts said on Tuesday.
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However, analysts said that some key products such as PP and PVC as well as other major petrochemicals exports from Taiwan have yet to be included in the initial list of products – dubbed the “early harvest list” - that the two sides have initially agreed upon.
"It is a surprise that they did not include those materials in as they are major exports products to
"The ECFA [Economic Cooperation Framework Agreement] negotiators could be including them in the later discussions or maybe in the last round of talks, but chances are slim," he added.
The trade pact is part of the ECFA between
Some 500 Taiwanese petrochemical, machinery, auto parts and textile products would be among the first to benefit from the tariff cuts under the deal, while around 200 Chinese products could go the opposite direction, they said.
On an annual basis, a total of 10m tonnes of petrochemical raw materials are shipped from
Analysts said that other major exports from
Regional rivals in southeast Asia with the implementation of the China-Asean FTA had an unfavourable advantage over Taiwanese petrochemical companies in the
“Chinese producers are concerned that the reduced tariffs under ECFA for petrochemicals would hurt the domestic market,” said Danny Ho, a petrochemical analyst with brokerage house Yuanta Securities in
“Taiwanese producers want the same standing as its competitors in
Meanwhile on Monday, Taiwanese Premier Wu Den-yih said that his country has been lobbying hard for the inclusion of eight key petrochemical items, but negotiations on them remain deadlocked, according to news reports.
The list of the petrochemical items Wu mentioned has not been made available.
Wu had said that while
According to these reports
Wu added that the trade pact was most likely to be signed in late June, or latest by early July, according to the reports.
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