According to a September 18 announcement on the Ministry of Finance website, the Customs Tariff Commission of the State Council has decided to terminate the import tariff exemption policy for 34 agricultural products originating from Taiwan, including fresh fruits, vegetables, and aquatic products, effective September 25, 2024. Import tariffs for these products will be implemented in accordance with current regulations.

Background and Reasons

The primary reason for this policy adjustment is Taiwans unilateral discriminatory bans and restrictions on mainland product exports, which have severely hindered normal cross-strait economic and trade cooperation. The Ministry of Finance noted in the announcement that, based on relevant provisions of the Customs Tariff Regulations of the Peoples Republic of China, the tariff exemption policy for some agricultural products originating from Taiwan will be terminated.import and exportRepeal of Related Notices

Concurrently, the following notices will be repealed: Notice of the Customs Tariff Commission of the State Council on Implementing Zero Tariffs for 15 Types of Imported Fruits Originating from Taiwan (Customs Tariff Commission [2005] No. 25), Notice of the Customs Tariff Commission of the State Council on Exempting Import Tariffs for Some Agricultural Products Originating from Taiwan (Customs Tariff Commission [2007] No. 3), and Notice of the Customs Tariff Commission of the State Council on Clarifying the Scope of Tariff-Exempt Agricultural Products from Taiwan (Customs Tariff Commission [2011] No. 28). This means the previous tariff exemption policies for agricultural products from Taiwan will be fully adjusted.

Meanwhile, documents such as the Notice of the Customs Tariff Commission of the State Council on Implementing Zero Tariff on 15 Kinds of Fruits Imported from Taiwan Region (Customs Tariff Commission [2005] No. 25), Notice of the Customs Tariff Commission of the State Council on Exempting Import Tariffs on Some Agricultural Products Imported from Taiwan Region (Customs Tariff Commission [2007] No. 3), and Notice of the Customs Tariff Commission of the State Council on Clarifying the Scope of Tariff-Free Agricultural Products from Taiwan (Customs Tariff Commission [2011] No. 28) will also be abolished. This means the previous tariff-free policies for agricultural products from Taiwan will be fully adjusted.

Policy Impact

The adjustment of this tariff policy involves 34 agricultural products including fresh fruits, vegetables, and aquatic products. These products previously enjoyed preferential policies of exemption from import tariffs, which facilitated the entry of Taiwanese agricultural products into the mainland market. However, with the policy change, these products will now be subject to import tariffs according to current regulations, which may impact the competitiveness of Taiwanese agricultural products in the mainland market.

Industry analysts suggest that this move may be a response by the mainland to recent trade restrictions imposed by Taiwan. Taiwan has implemented restrictive measures on the export of mainland products, affecting normal cross-strait trade. The mainland hopes that by adjusting tariff policies, both sides can engage in economic and trade cooperation on the basis of equality and mutual benefit.

Cross-Strait Economic and Trade Relations

Cross-strait economic and trade relations have always been an important component of relations between the two sides of the Taiwan Strait. Over the years, the mainland has implemented numerous preferential policies for Taiwan, aimed at promoting economic integration and common development. The adjustment of this tariff policy reflects the mainlands stance on safeguarding its own economic interests and trade fairness.

Experts point out that adjustments to trade policies should be based on the principle of mutual benefit. Both sides should resolve trade disputes through consultation and avoid unilateral restrictive measures to maintain the positive momentum of cross-strait economic and trade cooperation.

Future outlook

Facing the new tariff policy, Taiwanese agricultural product exporters may need to reassess their market strategies to cope with potential cost increases. At the same time, both governments need to communicate on trade issues, seek solutions, and avoid escalation of trade frictions.

Against the backdrop of a complex and ever-changing global economic situation, both sides of the strait should strengthen exchanges and cooperation to jointly address challenges. Only on the basis of mutual trust and benefit can sustained and healthy economic development be achieved, benefiting people on both sides.