Trade & Agricultural Cooperation
Trade and investment portfolios in robust shape
Over the last five years, two-way trade between Taiwan and Australia has grown at an average rate of 10 per cent, and two-way investment has grown at an average rate of 13 per cent. Growth has continued through the COVID-19 pandemic. In 2020, Taiwan was Australia’s 9th largest merchandise export market and 15th largest source of merchandise imports. Australia’s merchandise exports to Taiwan were worth 6.8 billion USD, and merchandise imports from Taiwan were worth 3.3 billion USD. In terms of recent major investment projects, Fubon Bank formally opened its first Australian office in Sydney in July 2021 and became the tenth Taiwanese Bank that has business presence in Australia, enhancing Australia’s role as a regional financial hub. The Formosa II, which is an offshore wind power project with a capacity of 376MW developed by Macquarie Group and expected to be completed by end of 2021, will also accelerate Taiwan’s energy transition to increase the share of renewable energy to 20% by 2025.
Strengthening resilience of energy and resource supply chains
The Taiwan-Australia Hydrogen Trade and Investment Dialogue was held in July. Taiwan’s Minister for Economic Affairs, Ms Mei-hua Wang, and Australia’s Minister for Trade, Tourism and Investment, the Hon Dan Tehan, opened the Dialogue. Both sides discussed opportunities for Australia and Taiwan in priorities low emission technologies such as hydrogen. Taiwan and Australia have a particularly strong bond in respect of energy and resources. Australia is Taiwan’s number one supplier of energy and Taiwan is Australia’s fourth largest energy and resource export market. The development and deployment of low emission technologies will be critical to reducing emissions and creating new economic opportunities. These will also provide enormous opportunities for both Australia and Taiwan to strengthen resilience of energy supply cooperation, including in wind and solar, and in emerging low emission technologies such as hydrogen.
De-crowned pineapples tapping into Australian market
After nearly five years of consultations between competent authorities, Australia has opened its door to the imports of Taiwan-grown de-crowned pineapples starting from March 2020. The first batch of Taiwan-grown pineapples was delivered to Australia by air in April 2021, marking a milestone and breakthrough of trade in agribusiness between Australia and Taiwan, particularly under disruptive trade measures against Taiwan-grown pineapples by China.
New accord to support exporters and financial institutions
Taiwan and Australia signed the Arrangement on Cooperation to Support Exporters and Financial Institutions in January 2021. It facilitates implementing bodies from both sides to give support to exporters and financial institutions by providing export credits that allow exporters to supply goods and services and to penetrate foreign markets as well as to assist financial institutions in providing export credits. Both sides decide to assist each other in obtaining market information, to assist each other on recovery and collection, and to offer training programs, etc. It also marks a significant outcome of Taiwan’s New Southbound Policy.
Taiwan’s bid for joining CPTPP
Taiwan officially submitted an application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on 22 September 2021. This not only represents an important process for Taiwan's external trade but also marks a major step forward in Taiwan's ambitions for participating in regional economic integration. President Tsai Ing-wen has underscored the importance of Taiwan's accession to the CPTPP. Government agencies have for many years been preparing for this bid, informally engaging in consultations and discussions with member countries, and revising and amending regulations, systems and operating methods. Taiwan is an advanced economy that plays an irreplaceable role in the global high-tech industrial supply chain. It also has a highly transparent market economy, and has the ability and the willingness to respect the global marketplace's high standards. “Australia will work with the CPTPP membership to consider Taiwan’s application on a consensus basis, in accordance with the CPTPP Accession Guidelines,” said Australian Minister for Trade, Tourism and Investment Dan Tehan.
