Cross-Straits Economic Cooperation Framework Agreement Preamble

The Straits Exchange Foundation and the Association for Relations Across the Taiwan Straits, adhering to the principles of equality, reciprocity and progressiveness and with a view to strengthening cross-Straits trade and economic relations. Have agreed, in line with the basic principles of the World Trade Organization (WTO) and in consideration of the economic conditions of the two Parties, to gradually reduce or eliminate barriers to trade and investment for each other, create a fair trade and investment environment, further advance cross-Straits trade and investment relations by signing the Cross-Straits Economic Cooperation Framework Agreement (hereinafter referred to as this Agreement), and establish a cooperation mechanism beneficial to economic prosperity and development across the Straits.

The two Parties have agreed through consultations to the following:

Chapter 1 General Principles

Article 1 Objectives

The objectives of this Agreement are:

• 1. To strengthen and advance the economic, trade and investment cooperation between the two Parties;

• 2. To promote further liberalization of trade in goods and services between the two Parties and gradually establish fair, transparent and facilitative investment and investment protection mechanisms;

• 3. To expand areas of economic cooperation and establish a cooperation mechanism.

Article 2 Cooperation Measures

The two Parties have agreed, in consideration of their economic conditions, to take measures including but not limited to the following, in order to strengthen cross-Straits economic exchange and cooperation:

• 1. Gradually reducing or eliminating tariff and non-tariff barriers to trade in a substantial majority of goods between the two Parties;

• 2. Gradually reducing or eliminating restrictions on a large number of sectors in trade in services between the two Parties;

• 3. Providing investment protection and promoting two-way investment;

• 4. Promoting trade and investment facilitation and industry exchanges and cooperation.

Chapter 2 Trade and Investment

Article 3 Trade in Goods

• 1. The two Parties have agreed, on the basis of the Early Harvest for Trade in Goods as stipulated in Article 7 of this Agreement, to conduct consultations on an agreement on trade in goods no later than six months after the entry into force of this Agreement, and expeditiously conclude such consultations.