Taiwan and China are set to remove or lower tariffs on a range of items, including textile products, as part of a wide-ranging trade agreement agreed on Sunday (13 June).

While talks are still needed to finalise and sign the pact – expected later this month or early July – the two sides say they have made substantial progress in setting out the basic text of the ‘Cross-Strait Economic Cooperation Framework Agreement.

The deal covers trade, investment, economic co-operation, and the first “early harvest” lists that detail the products that will see their tariffs reduced or removed.

Both sides have committed to “gradually reduce or eliminate barriers to trade and investment between them, and create fair trade and investment environment,” the Straits Exchange Foundation said in a statement.

Local media reports suggest China has agreed to offer tariff exemptions or reductions on 500 products from Taiwan and that Taiwan will open its market to between 100 and 200 industrial items from China. Tariff reductions for textiles could be 80%.