Moreover, the preface of the document also articulates that both sides agree to establish a cooperation mechanism conducive to cross-Straits prosperity and development according to the basic principles of the World Trade Organization (WTO).

It is plain that Beijing has made significant concessions to Taiwan in economic terms, a manifestation of the deep cross-Straits bond.

While visiting some Taiwan businesses in Zhangzhou of Fujian province on Feb 12 this year, President Hu said: "We will try out the best in everything that will benefit the Taiwan compatriots, and we will honor our words; the mainland and Taiwan are negotiating on the ECFA and it is something that will help promote cross-Straits economic cooperation and bring win-win results; during the negotiation process, we will put into full consideration the interests of Taiwan compatriots, especially those of farmers."

Premier Wen Jiabao has also said previously that "the mainland can give up profits, giving full consideration to the interests of small- and medium-sized enterprises and the mass populace in Taiwan, especially farmers."

These statements have shown Beijing's solicitude for the people of Taiwan, as well as the mainland's sincerity in advancing cross-Straits peace.

Third, the pact is intended to promote a mutually beneficial two-way relationship with win-win results.

The signing of the ECFA means that both sides can create a favorable atmosphere and a non zero-sum mechanism in economic and trade matters, and it is a move signaling a turn in cross-Straits' institutional integration.

The ECFA will help both sides cut tariffs mutually, ease market access, promote economic cooperation, expand investment and trade exchanges and let compatriots on both sides enjoy political stability and economic prosperity, so as to lay a sound foundation for cross-Straits peace and development.

As hailed by Wang Yi, director of the State Council Taiwan Affairs Office, the signing of the ECFA has advanced the process of normalizing cross-Straits relations, identified the common goal of a comprehensive free trade agreement and built a platform for cross-Straits economic cooperation. It is of far-reaching significance for cross-Straits ties.

Finally, the signing of the ECFA is the fruit of enhanced cross-Straits mutual trust. Ever since the KMT, which is committed to peaceful development of cross-Straits relations, resumed power in May 2008, the two sides have stepped forward side by side based on the 1992 Consensus to counter Taiwan independence.

Thanks to that, Beijing and Taipei could achieve so many breakthroughs in their relationship and ties could develop peacefully over the years.

With the endorsement and implementation of the ECFA, cross-Straits relations will certainly head into a brighter future.

The author is a researcher at the Institute of Taiwan Studies under Beijing Union University.