By Taipei Economic and Cultural Office Toronto
Taiwan’s innovation leadership and significant economic potential in Asia is an opportunity for Canada to stay competitive on a world stage. Canada has increasingly prioritized strengthening its relations with the island nation and creating greater access to investment potential for businesses of all sizes and sectors.
Taiwan, the 21st largest economy in the world and with its robust economic and trade strength, has emerged as a key player in the global market. Taiwan’s GDP reached an impressive USD $828.6B in 2022 and holds the position as the number one semiconductor producer, solidifying its reputation as a technological powerhouse. Consistently achieving top rankings in global key indicators including the Top 6th in Economic Freedom (Heritage Index) and Top 7th in Competitiveness (IMD Index). It is no surprise that Taiwan is seeking to enhance its economic and trade relations with Canada.
According to Canada Indo-Pacific Strategy, Canada will strengthen its Science, Technology and Innovation partnerships with key economies, including Taiwan, to ensure the resilience of supply chains. At the end of March 2023, an interim report on Canada-Taiwan relations, released by the House of Commons Special Committee of Canada, provides a list of recommendations to the Government of Canada for enhancing friendly relations between Taiwan and Canada in various domains, including diplomacy, security, economy and trade, technology, and indigenous affairs.
Taiwan, a country of 23M currently stands as Canada’s 12th largest trading partner and with over CAD $12B in trade in 2022. This number is particularly impressive when compared to the pre-pandemic year of 2019. Bilateral trade has since seen a 50 per cent increase. Collaboration between Taiwan and Canada extends beyond traditional sectors and creates opportunities for partnership in emerging technology. The electric vehicle supply chain and hydrogen energy industries are global priorities where both countries can leverage their expertise. This highlights the mutual benefits and immense potential that lie within Taiwan-Canada economic and trade relations.
The governments of Taiwan and Canada have taken concrete steps to solidify their partnership. The first round of negotiations for the Foreign Investment Promotion and Protection Agreement (FIPA) between Taiwan and Canada has commenced. Concurrently, Taiwan has submitted its application for membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2021, and the Canadian Parliament also urges the Government of Canada to prioritize the assessment of Taiwan’s application to join the CPTPP in the said Report. Meanwhile, Taiwan will soon open its new office in Montreal, the fourth mission in Canada that aims to expand relations with Canada across various disciplines.
As Taiwan and Canada deepen their economic and trade relations, it is essential to capitalize on the momentum and explore new avenues of collaboration. By leveraging their respective strengths and expertise, both nations can foster innovation, enhance trade, and create a more prosperous future for their citizens. A strong Taiwan-Canada partnership will not only benefit both countries but also contribute to regional stability and economic growth.
