Cabinet urges dialogue as China ends tariff exemptions on Taiwan produce

Taipei, Sept. 19 (CNA) Taiwan's Executive Yuan on Thursday urged China to engage in dialogue with Taiwan under the World Trade Organization (WTO) framework, in response to China ending tariff exemptions on certain produce from Taiwan.

On Wednesday night, China's Ministry of Finance announced that 34 items, including fresh fruit, vegetables and aquatic products originally tariff free will no longer be applicable for the exemption from Sept. 25.

Also read: Taiwan calls China's end of tariff exemptions on agricultural goods 'coercion'

It claimed the reason was Taiwan's "unilateral and discriminatory restrictions and measures" against products exported from China which has "seriously deterred cross-strait economic cooperation."

Cabinet spokesperson Michelle Lee (李慧芝) said that the Cabinet strongly protests the "economic coercion" China has imposed on Taiwan since 2021.

China's insistence that Taiwan imposed trade barriers and its subsequent "retaliatory measures" are contrary to WTO regulations, Lee said.

She urged China to engage in "dialogue instead of confrontation," as members of the WTO.

The Ministry of Agriculture (MOA) said Wednesday night that the impact of the sudden policy change will be manageable.

The MOA pointed out that China previously unilaterally suspended imports of Taiwanese pineapples, mangoes and wax apples and that few items are subject to zero tariffs.

Moreover, registration is required for food products imported into China, imposing other barriers to Taiwanese exporters, the MOA said

Other obstacles include high marketing costs, a long wait to clear customs, relatively high value-added taxes, the prevalence of local fruits posing as Taiwanese fruit, competition from low-cost fruit and the difficulty of resolving disputes, the ministry added.

Minister of Agriculture Chen Junne-jih (陳駿季) told CNA Wednesday night that there are currently 52 types of produce that can be imported into China tariff free. The 34 to be terminated were added in 2005 and 2007.

Items that could be impacted include pomelos, atemoyas -- a hybrid variety of custard apples -- and silverfish, Chen said.

Trade statistics from 2023 show the 34 types of produce enjoyed collective savings of about US$1.08 million in tariffs, Chen added.

The MOA said that the Taiwanese government has been urging China to negotiate over tariff-related matters to prevent the arbitrary cancelation of the favorable measures since 2005.

China is yet to respond to the requests, the MOA said.

Since China began suspending Taiwanese imports, the MOA has continued measures to enhance Taiwan's competitiveness and develop markets outside of China, the ministry said.

For example, pineapples began to be exported to Australia in 2020 and New Zealand in 2024. Dragon fruit also began being exported to Japan in 2024, the MOA said.

In 2020, Taiwan exported US$3.89 billion worth of produce to overseas markets other than China. In 2023, the amount grew to US$4.39 billion, the MOA added.

Lee also said that the proportion of Taiwan's produce exports to China has lowered from 23.2 percent in 2018 to 10.2 percent in 2023.

In particular, fruit exports to China dropped from 80.1 percent in 2019 to 6 percent in 2023, she added.