Supporting Taiwan is to support democracy and ensure world economic prosperity
How to strengthen Canada-Taiwan trade and investment partnership
Foreign Investment Promotion and Protection Agreement (FIPA): The announcement made earlier in 2022 by Taiwan and Canada to begin talks on the FIPA is a welcoming first step. We expect the deal to further promote supply chain resilience and mutually beneficial commercial opportunities for Taiwan and Canada. It will also increase collaboration on science, technology and innovation, education, and indigenous affairs between the two countries.
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP): Taiwan submitted its application for CPTPP membership in 2021. If Taiwan becomes a CPTPP member, greater business opportunities may be realized from enhanced regional economic integration. As an example, that will make Canadian agriculture and services much more competitive in Taiwan, and this will be more beneficial for Canadian exporters as well as agriculture and farmers. Taiwan is already part of the WTO and APEC and has a number of free trade agreements with NZ and Singapore. Taiwan has amended its laws and regulations to meet the high standards of the CPTPP without reservation. It is well qualified for the CPTPP.
Growing Canada-Taiwan bilateral business relations
Trade amount between Taiwan and Canada increased by 44% in 2021, up to 10 billion CAD, compared to only 17% growth in total trade of Canada. In 2021 Taiwan was Canada’s 11th most important trading partner worldwide and the 5th most important in Asia. Its accession to the CPTPP and signing a FIPA with Canada could only deepen our economic interaction.
Promising Prospect for Canada-Taiwan trade and investment
In this era of geopolitical uncertainty and supply chain realignment, Canada and Taiwan can work together to increase their supply chain resilience. Taiwan is the gateway into the Asia Pacific market with its excellent position in the region and its New South bound policy, which leads to a major presence of Taiwanese factories and investments in South East Asian and South Asian countries. Taiwan’s connection and networking with those Asian countries will help Canada to realize its trade diversification in the Indo Pacific. Both countries share the core value of democracy and freedom and respect the rule of law. Taiwan and Canada are friends, partners, and trusted allies.
