TAIPEI (TVBS News) — The Petrochemical Industry Association of Taiwan (PIAT) estimated on Thursday (Dec. 21) that China's suspension of preferential tariffs, as per the Economic Cooperation Framework Agreement (ECFA), will affect Taiwan's trade.
PIAT officials noted that Taiwan's petrochemical exports to China dropped by 31.85 percent last year to US＄6.24 billion. The impact of the tariff preferences' early termination amounts to approximately US＄1.7 billion. These petrochemical goods will now face tariffs ranging from 2 to 10 percent, up from 0 percent.
PIAT considers the number of products Taiwanese companies sell to China and their ability to shift production when assessing the impact. The association emphasized the need for cross-strait consultations, believing that filing a lawsuit with the World Trade Organization (WTO) may not be beneficial if trade barriers persist.