BEIJING - The early harvest program of the Economic Cooperation Framework Agreement (ECFA) is expected to raise Taiwan's GDP by 0.4 percent, which is worth $1.7 billion, and create 60,000 jobs in the island, Taipei World Trade Center predicted.

The ECFA was signed between the mainland and Taiwan on Jun 29, 2010. Under the agreement, the two sides will first began to cut tariffs for each other in a program that is called the early-harvest program. The mainland will remove tariffs of 557 categories of products from Taiwan, including 18 agricultural products; while Taiwan is expected to scrap import taxes on 278 items from the mainland.

Import tariffs on these products will be gradually reduced to zero within two years. For example, the tariff for Taiwan bicycles is 13 percent; while after Jan 1, it has been cut to 5 percent and will be scrapped after January 1, 2012.

"ECFA sounds like 'making more money' in southern Fujian dialect, and I believe this agreement is a propitious sign for trades between the mainland and Taiwan," said Stephen Wu, director of research department of Taipei World Trade Center in Beijing.

"The mainland is the biggest business partner of Taiwan. In 2010, the trade volume has reached $152.3 billion. Tariff exemption will have significant impact on the cross-Straits trade volume," he said.

By January 2012, more than 90 percent of the early-harvest products will enjoy zero tariff, and it will save nearly $1 billion for each side.

"It is like removing the toll station from the highway," said Kang Wen, deputy director of the department of Taiwan, Hong Kong and Macao Affairs of the Ministry of Commerce. "It will boost cross-Straits trade and promote the integration across the Straits."