With the signing of the Economic Cooperation Framework Agreement (ECFA), Taiwanese businesses are hoping for better access to southeast Asian markets.

"Once the ECFA comes into effect, the mainland will be a platform for Taiwanese exports to ASEAN markets," said Kristy Tsun-Tzu Hsu, associate research fellow at Chung-Hua Institution for Economic Research. "This will not only create room for Taiwan enterprises, but also enable Taiwan industry to shift traditional businesses to Southeast Asian countries."

The members of the Association of Southeast Asian Nations, or ASEAN, are major export markets for Taiwan, and their markets are growing quickly, Hsu said.

"The China-ASEAN Free Trade Area has led to a boom in the logistics and tourism businesses. Taiwanese companies have much marketing and management experience in these businesses. There will be a lot of things to do."

The mainland and ASEAN are important markets for Taiwan's export-focused economy. Exports to the two markets account for 65 percent of the island's total exports.

But due to the lack of an economic agreement with the mainland, Taiwan has been unable to join in the region's economic integration process, weakening its competitiveness.

On Jan. 1 this year, the China-ASEAN Free Trade Area took effect, lowering the tariff on a majority of exports and imports between the two sides to near zero. At this time, Taiwanese businesses grew concerned they were being left out.

Mainland-based Taiwanese enterprises entitled to enjoy the tariff cuts in the China-ASEAN Free Trade Area will pay tariffs on goods bought from Taiwan until the ECFA takes effect. This is adding to their costs.

"The ECFA has brought us hope," said Roscher Lin, chairman of Taiwan's Association of Small and Medium Enterprises.

The ECFA agreement reached on June 29 means the mainland and Taiwan will "gradually reduce and remove trade and investment barriers and create a fair environment" for each other.

The agreement also had a list of products and services for the "early harvest program." Tariffs on these goods and services will be reduced to zero within two years of implementation.