The move also aligns with Taiwan’s endeavours to increase economic ties with other democracies and pursue inclusion in a major Indo-Pacific trade pact.
Canada has inked a pivotal bilateral investment agreement with Taiwan in a bid to bolster both their economies.
The move also aligns with Taiwan’s endeavours to increase economic ties with other democracies and pursue inclusion in a major Indo-Pacific trade pact.
The Foreign Investment Promotion and Protection Arrangement (FIPA) was signed Dec. 22
in Taipei, Taiwan, between the Canadian Trade Office in Taipei and the Taipei Economic and Cultural Office in Canada, the de facto embassy of the self-ruled democracy.
“This arrangement will inject more predictability into business dealings between Canada and Taiwan, and contribute to the mutual prosperity of our two economies,” the Canadian Trade Office in Taipei wrote
on its official Facebook page.
Introduced in 2021, FIPA serves as a free trade agreement model, aimed at improving the rules-based investment environment for both Canadian businesses investing abroad and foreign businesses investing in Canada. Canada and Taiwan initiated exploratory negotiations for FIPA in early 2022.
Taiwanese President Tsai Ing-wen discussed the FIPA agreement with a Canadian parliamentary delegation, led by Liberal MP Judy Sgro, that visited Taiwan
in October 2022. Noting the importance of the deal, Ms. Tsai said the agreement’s goal is to create a “more open, transparent, and friendly investment environment, as well as strengthen bilateral economic and trade links.”
The agreement is the culmination of two months of negotiations, the Taipei Economic and Cultural Office said in
a press release. Jim Nickel, the Canadian representative to Taiwan, and Harry Tseng, Taiwan’s representative to Canada, formally sealed the deal on behalf of their respective governments.
Warming Ties
The FIPA is viewed as a way for Taiwan to ease into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), an 11-member trade agreement among countries in the Pacific region. Ms. Tsai sought Canada’s support for Taiwan’s accession to the organization during her meeting with the Canadian parliamentary delegation in 2022.
In
September, a Senate bill was introduced in support of Taiwan’s increased participation in international organizations, including the CPTPP. Canada is set to assume the rotating chair of the CPTPP next year.
Taiwan has been lobbying CPTPP members, including Canada, for support in its application. It emphasized its commitment to transparency and the rule of law in its economy and international business dealings, in contrast to Beijing. The Chinese regime has made contentious claims over Taiwan as part of its territory, despite never having governed the island.
Taiwan, which has consistently rejected China’s sovereignty claims, is experiencing improved relations with Canada. This positive trend contrasts with the strained relationship between Beijing and Ottawa in recent years, marked by conflicts such as the arrest of Huawei’s Meng Wanzhou and various allegations of China’s foreign interference in Canadian society and electoral processes.
Apart from Ms. Sgro’s delegation to Taiwan, Liberal MP
John McKay and Conservative MP
Melissa Lantsman have respectively led parliamentary delegations to the island in April and July. During both visits, the delegations focused on discussions of security and trade collaborations.
In June, Conservative MP Michael Cooper introduced a private member’s bill,
C-343, with the goal of enhancing Canada’s ties with Taiwan. He underscored that this initiative was in the national interest of Canadians, pointing to Taiwan as Canada’s 11th-largest trading partner and a pivotal contributor to the manufacturing of high-tech products, notably semiconductors.
Despite the absence of formal diplomatic ties, Canada and Taiwan uphold de facto embassies in each other’s capitals. On Dec. 4, Taiwan inaugurated its
fourth representative office in Canada, located in Montreal, Que.
Reuters contributed to this report
