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The Economic Cooperation Framework Agreement (ECFA) will reduce tariffs on 500 products exported from Taiwan to China and 200 products shipped from China to Taiwan including car parts and machinery. It will also open the door for Taiwan to be included in future free trade agreements that China previously prevented because it viewed Taiwan as a rebellious province.
"Signing the ECFA is a route that Taiwan must take and it is a milestone, " Liu Bih-rong, a political science professor at Soochow University in Taipei, told Bloomberg. "It signifies how the relationship between the two sides has recovered and, more importantly, it will pave the way for more free-trade agreements and benefits. "
The agreement's details still need to be ironed out and should be finalized by early July at the latest.