Canadian Trade Minister said that Canada and Taiwan have held talks on a bilateral investment deal and it will work to make sure that it takes effect soon. This means that both the countries will see investments in each other’s economies which will give an overall boost to their economies. However, we know Canada has much more to gain from Taiwan due to its technology sector needing chips which are made in Taiwanese factories. This is also the main reason why US has been defending Taiwan for a long time against China’s advances. Taiwan has been seeking greater diplomatic and moral support from major Western democracies, such as Canada, as it faces growing military and political pressure from China to give in to Beijing’s sovereignty claims over the island. As part of that, Taiwan has been seeking more trade deals with Western countries.
The Foreign Investment Promotion and Protection Arrangement is part of Canada’s plan to increase trade and influence in the Indo-Pacific region. Trade between Canada and Taiwan totaled 10.2 billion Canadian dollars ($7.5 billion) in 2021, up from CA$7.4 billion in 2020, according to official Canadian figures. Canada’s total bilateral trade with the world is more than CA$1.5 trillion. Taiwan’s government welcomed the news. Its Office of Trade Negotiations said the deal will be signed once “administrative procedures” are completed, including legal reviews of the text. “Of course, we aim to sign as soon as possible, hopefully before the end of the year,” said John Deng who negotiates all the deals for Taiwan.
Taiwan’s chief trade negotiator says that this “agreement would help with Taipei’s bid to join a major pan-Pacific free trade pact, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Canada holds the rotating chair of the CPTPP next year, a grouping China has also applied to join”. It is worth noting that Canada does not officially recognize Taiwan because of the influence of China and its two-state policy but both the countries have embassies in each other’s capital cities. It is also to be noted that China’s relations with Canada have been sour in recent times and this will not help it one bit.