Canada and Taiwan Set to Sign Bilateral Trade Agreement

Minister of Export Promotion, International Trade and Economic Development Mary Ng speaks during a signing ceremony in Ottawa, on Sept. 21, 2023. (The Canadian Press/Justin Tang)

Canada and Taiwan have wrapped up discussions on a bilateral deal that Ottawa says will boost foreign investment and create stronger ties between the two countries.

“Canada recognizes the value in creating greater access to investment potential for businesses of all sizes and sectors in Canada and Taiwan,” Minister of Export Promotion, International Trade and Economic Development, Mary Ng said in an Oct. 24 release.

“That is why Canada is pleased to announce that negotiations on a foreign investment promotion and protection arrangement have finished and Canada is working with Taiwan to ensure that the arrangement will be signed and come into effect promptly.”

It’s the first bilateral investment agreement since Canada revised its model investment agreement in 2021, according to the Taiwan Office of Trade Negotiations.

Dubbed the Foreign Investment Promotion and Protection Arrangement, a release from Taiwan’s trade office said there are 70 provisions in the document and the deal provides some of the most “comprehensive levels of protection, predictability, inclusiveness, and convenience” seen in global trade agreements.

Trade between Canada and Taiwan amounted to US$5.8 billion (CA$8 billion) in 2022, according to the Taiwan government.

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The Office of Trade Negotiations said that Taiwan has investments in Canada worth $600 million, and Canada has nearly $1 billion invested in Taiwan.

Negotiations on the deal began in February, according to the Office of Trade Negotiations.

Ms. Ng said the announcement showcases Taiwan as an “important trade and investment partner.”

The deal, which has yet to be signed, is a boon for Taiwan which has been under military and political pressure from China recently.

The Canada-Taiwan agreement also gives Taipei a boost in its bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as Canada holds the rotating chair for the organization in 2024. The CPTPP is a free trade agreement between Canada and 10 other Indo-Pacific countries. China has also applied to join the CPTPP.

Canada and Taiwan have no formal diplomatic ties, as Canada has a One China Policy that states it neither supports nor challenges China’s stance on Taiwan. Yet, Canada and Taiwan each have de facto embassies in each other’s countries and there are an estimated 60,000 Canadians living in Taiwan, according to a House of Commons Report.

Reuters contributed to this report.