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China and Taiwan will begin negotiations on a proposed trade pact in Beijing on Tuesday, paving the way for closer economic ties between the two sides that were once on the brink of war.
Officials from Taiwan's Straits Exchange Foundation (SEF) and China's Association for Relations Across the Taiwan Strait will meet on January 26 to discuss the agenda of the trade pact, the SEF said in a statement on Sunday.
Discussions will be limited to procedural matters related to the agreement, which is known locally as the Economic Co-operation Framework Agreement (ECFA), an official at Taiwan's economics ministry said. "The first meeting is typically procedural, and I think this will be no exception," the official said.
Taiwan has previously said it would like to have tariffs on petrochemicals, machinery and textile products removed after the signing of the agreement. Taiwan and China have remained political foes since the Nationalist Kuomintang fled the mainland following its defeat to the Communists in the 1949 civil war. China views Taiwan as part of its territory and has vowed to bring it back to its fold.
Economically, however, China is Taiwan's fastest-growing export market with many of the island's top companies such as Hon Hai and Quanta operating massive facilities on the mainland.

Copyright Reuters, 2010

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