Let Taiwan into the Trans-pacific trade partnership

Last November in Vietnam, 15 Asian countries signed the Regional Comprehensive Economic Partnership ( RCEP), which expands trade and reduces tariffs and other barriers. The agreement forms the world’s largest trading bloc, and yet, it is not without its problems and gaps. Signatories to RCEP include Japan, South Korea, Singapore, Indonesia, the Philippines, Australia, New Zealand and China. In fact, most observers regard RCEP as a China- centric agreement.

In light of RCEP, Canadian policy- makers need to consider their next moves on trade in Asia. Canada should consider advocating for an expanded Comprehensive and Progressive Agreement for Trans-pacific Partnership ( CPTPP) to include reliable partners like Taiwan.

The CPTPP — which started life as the TPP ( the Trans- Pacific Partnership) — was agreed to in 2018. It was always designed to be expanded, however. The first seven countries that have ratified the trade pact — Japan, Australia, Mexico, Singapore, New Zealand, Vietnam, and Canada — have the obligation to create a framework for welcoming new member states based on high standards and consensus while awaiting ratification by the remaining four original members ( Brunei, Chile, Malaysia and Peru). Canada has an opportunity to demonstrate leadership by trail-blazing a common strategy with Japan and other major CPTPP countries to welcome new members like Taiwan, the U.K. and other interested countries.

Trade deals are not pursued merely to increase trade, but are in fact a way to strengthen the rule-based market economic system. In this context, Taiwan is Canada’s 13th- largest trading partner in the world, and the fifth in Asia. CPTPP access would help further strengthen these already important economic ties.

This solid baseline explains why recent polling suggests 68 per cent of Canadians support Taiwan’s membership in the CPTPP. Polling also suggests that Canadians hold largely positive views of Taiwan. It’s no mystery why this is the case: as democracies, we share in the same goals of fostering a free, peaceful, progressive and sustainable world order. It only makes sense that Canada and Taiwan should work more closely together, and that Canadians would support Ottawa in advocating Taiwan’s membership in the CPTPP.

If Taiwan were to be included in the CPTPP, we would be the fifth- largest economy in the partnership, behind only Japan, Canada, Australia and Mexico. Our country represents a major potential market for Canadian commodities, and we also export many of the hightech manufactured goods, such as semiconductors, that Canada currently imports from other countries. Working more closely with Taiwan would provide Canada with a tremendous opportunity to build on its own comparative advantages.

The COVID-19 pandemic has also demonstrated the fragility of global supply chains and the importance of mutual trust in international trade. Authoritarian states have proven to be unreliable, and thus there is a growing need for fellow democracies to work more closely with one another in order to develop stable critical supply chains. Taiwan’s economy is among the freest in Asia and, sharing the same democratic outlook as Canada, we represent an accessible, dependable, and like-minded partner.

Canada has already had to deal with economic coercion and strained trade relations. Supporting the expansion of the CPTPP to include Taiwan could help offset both present and future global trade challenges.

As Canada seeks to pursue progressive trade deals — ones that enshrine the rights of workers, consider the impacts of disruption and dislocation, include genderbased analyses, and more — it needs to work with equally progressive partners. Countries that depend on the exploitation of low- income labour are unlikely to serve as good partners, which is another reason Taiwan stands out as an attractive trading partner for Canada.

Closer trade between Canada and Taiwan would be very natural. Taiwan is already well integrated with partnership countries: 30 per cent of our imports come from and 20 per cent of our exports go to CPTPP members.

Supporting Taiwan’s membership in the CPTPP would not be a risk, merely recognition of economic trends that are already occurring, and have been occurring for quite some time. As the world moves into a recovery from the COVID-19 pandemic, Canada has an opportunity to help position itself and its CPTPP member states on a better economic footing by including Taiwan.

The world is changing — it makes sense that countries adapt to keep pace. Taiwan is a ready and willing partner for the CPTPP, and its modern progressive economy rises to the necessarily- high standards of openness and transparency. Supporting Taiwan’s accession to the CPTPP is one way for Canada to support a stronger alliance of democracies and develop secure, reliable and long-lasting supply chains.

The world is changing — it makes sense that countries adapt to keep pace.