Second, the deal fully underscores Beijing's good intention to engage in peaceful development.
The mainland will cut import tariffs on items with a total export value of $13.84 billion and Taiwan will reduce them for items worth $2.9 billion. The latter will enjoy transfer of profits of nearly $11 billion from the tariff concession. The pact has granted 17 sensitive and vulnerable industries in Taiwan an adaptation period over 10 years.
Moreover, the preface of the document also articulates that both sides agree to establish a cooperation mechanism conducive to cross-Straits prosperity and development according to the basic principles of the World Trade Organization (WTO).
It is plain that Beijing has made significant concessions to Taiwan in economic terms, a manifestation of the deep cross-Straits bond.
While visiting some Taiwan businesses in Zhangzhou of Fujian province on Feb 12 this year, President Hu said: "We will try out the best in everything that will benefit the Taiwan compatriots, and we will honor our words; the mainland and Taiwan are negotiating on the ECFA and it is something that will help promote cross-Straits economic cooperation and bring win-win results; during the negotiation process, we will put into full consideration the interests of Taiwan compatriots, especially those of farmers."
Premier Wen Jiabao has also said previously that "the mainland can give up profits, giving full consideration to the interests of small- and medium-sized enterprises and the mass populace in Taiwan, especially farmers."
These statements have shown Beijing's solicitude for the people of Taiwan, as well as the mainland's sincerity in advancing cross-Straits peace.
Third, the pact is intended to promote a mutually beneficial two-way relationship with win-win results.
The signing of the ECFA means that both sides can create a favorable atmosphere and a non zero-sum mechanism in economic and trade matters, and it is a move signaling a turn in cross-Straits' institutional integration.
