Taiwan and Canada Solidify Economic Ties with New Investment Deal
The agreement with Canada comes at a time when Taiwan is actively seeking support from major democracies to counter China's escalating military and diplomatic pressure
Prime Minister of Canada Justin Trudeau holds a press conference in Ottawa, Canada on March 24, 2023. Photo by Anadolu Images.
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n a move to strengthen international economic partnerships and assert its global trade presence, Taiwan signed a significant bilateral investment agreement with Canada on December 22.
This development marks a strategic effort by Taiwan to deepen relations with democratic allies, amidst increasing Chinese assertiveness over the island which Beijing claims as its territory.
The investment deal, concluded after talks in October, is seen by Taiwan as a key step in enhancing its ties with Western nations and as a potential facilitator for its entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Actively seeking support
The agreement comes at a time when Taiwan is actively seeking support from major democracies to counter China’s escalating military and diplomatic pressure.
Canada, which is set to chair the CPTPP next year, was represented by its chief diplomat in Taiwan, Jim Nickel. The Canadian Trade Office in Taipei, which functions as Canada’s de facto embassy, heralded the agreement as a milestone that will provide predictability and foster mutual economic growth between the two economies.
Taiwan’s Office of Trade Negotiations underscored the agreement’s alignment with high standards on key issues, such as environmental protection and governance, which are in line with the trade norms upheld by CPTPP countries.
Taiwan’s bid to join the trade pact
This alignment is expected to bolster Taiwan’s bid to join the trade pact, contrasting with Beijing’s approach by emphasizing Taipei’s commitment to transparency and the rule of law.
The tension between China and Canada, which has recently soured, adds a layer of complexity to the agreement. Taiwan has vehemently rejected China’s claims of sovereignty, maintaining its status as a self-governed democracy.
While Canada, like most nations, does not have formal diplomatic relations with Taiwan, the two have established strong unofficial links, highlighted by reciprocal de facto embassies.
This bilateral investment agreement signifies not just an economic partnership but also a geopolitical statement, as Taiwan navigates its complex international position against China’s territorial assertions.
Source: Reuters
