The local legislature in Taiwan has approved a trade deal with the Chinese mainland, realizing a landmark trade pact that looks to slash tariffs on traded goods.

But the agreement has also stoked controversy on the island.

By a count of 68 to zero, the local legislature voted late Tuesday to pass the Economic Cooperation Framework Agreement (ECFA) after a day of review.

The main opposition, the Democratic Progressive Party (DPP), took part in the more than 12 hours of debate on each of the agreement's 16 articles, but dropped out before the final vote.

The ruling party, the Kuomintang (KMT), used its overwhelming majority in the legislature to defeat 18 DPP motions, the Taiwan News reported.

Under local laws, the ECFA, which was signed June 30 between negotiators of the Chinese mainland and Taiwan, could take effect only after being approved by the regional legislature.

As result of the passage, the deal will cut tariffs on hundreds of products and services traded between the two sides and allow Taiwanese businesses to access the banking and insurance sectors on the mainland. The pact is set to officially come into effect early next year, though some areas covered will be enacted next month.

The Chinese mainland is Taiwan's largest trading partner, with bilateral trading already totaling about $110 billion a year.

Taiwan leader Ma Ying-jeou said earlier that 23,000 small and medium-sized businesses in Taiwan would be the key beneficiaries of the agreement.

The Chung-hua Institute for Economic Research, a Taipei-based think-tank, predicted that the pact will boost regional GDP growth by 1.65 to 1.72 percent and generate between 260,000 and 270,000 new jobs in Taiwan.

A poll conducted by Taiwan's economic affairs authorities, who surveyed 3,000 local manufacturers about their opinions of the pact, found that the industries focusing on domestic demand - such as apparel, clothing accessories and food - said they would be hurt by the ECFA, while most respondents said the pact would be more beneficial, the Taiwan-based Central News Agency reported Wednesday, citing an official. The official results of the poll are due today.

Sabrina Wang, deputy president of the Industrial Bank of Taiwan, told the Global Times that the banking industry is a direct beneficiary of the trade pact, and her bank has ambitious expansion plans.

"With the effectiveness of the pact, Taiwanese banks can set up outlets on the mainland. It can bring convenience to our clients who have been running businesses on the mainland for years. More services become available for them to avoid financial risks and to manage capital," she said.

"Those who still maintain the wait-and-see attitude will gain confidence once they see Taiwanese financial organizations operating on the mainland."