Canada should support Taiwan’s admission to the CPTPP – iPolitics.ca

The COVID-19 pandemic has uprooted much of the globalized system of trade and has challenged the viability of key international institutions. At this uncertain time, what is needed now, more than ever, is co-operation between like-minded countries with shared values and priorities to rebuild better systems of trade and international governance.

In this context, its in Canadas interest to support Taiwans efforts to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).

As the COVID-19 crisis has proven, many countries are very dependent on trade to secure crucial medical supplies, such as personal protective equipment (PPE). However, with much of the worlds PPE manufactured in China, importing countries were plagued with quality control issues, lack of access, threats of restricted access, and other concerns.

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Clearly, the health and well-being of all people, including Canadians, requires a better system of trade that is less dependent on bad actors. Rather than turn to isolationism or inefficient self-reliance, democracies must find better solutions to work more closely with one another on trade so as to satisfy shared needs.

Enter Taiwan.

Since the beginning of the pandemic, Taiwan has ramped up its production of PPE and other medical supplies quickly, placing it in the fortunate enough position to act as a significant provider of the crucial material. This includes the donation of 1.7 million masks and other PPE items to Canada, as well as direct support from Taiwan to help develop Canadas domestic mask-manufacturing capacity.

By integrating Taiwan into agreements like the CPTPP, Canada could stand to reduce its trade reliance on countries that do not share the same values, instead placing its trust in a like-minded partner with a proven track record on trade. Such a move would further strengthen the rules-based, free, open, and multilateral trading system that is the basis for the global economy.

Moreover, the benefits of Taiwans ascension to the CPTPP go beyond the immediate crisis. Indeed, even if the world were not subject to the COVID-19 pandemic, the fundamental logic of including Taiwan in this important international partnership remains the same.

Compared to current CPTPP members, Taiwan has the fifth-largest economy. Adjusted for purchasing-power parity, Taiwans GDP per capita would be the third-largest of this group. Consistently, Taiwan ranks as among the best countries in the world in trade, investment, ease of doing business, economic freedom, and more. This means that Taiwans ascension to the trade partnership would be of significant multilateral benefit to all members.

Particularly for Canada, Taiwan makes sense as a trading partner. Taiwan manufactures precisely the kinds of high-tech products that Canada imports, and Taiwan imports precisely the kinds of high-quality commodities and natural resource-based products that Canada exports. From both import and export perspectives, strengthening this trading relationship would be of significant mutual benefit to both countries.

If Ottawa were to support Taiwans ascension to the CPTPP, it would hardly be acting alone. Japan and other major players have already indicated that expanding the pact to more Asian economies remains a priority. It is a sensible move with broad support within existing CPTPP members.

While the CPTPP ministerial meeting would touch on the issue of new members, Canada can help strengthen this important international trade partnership. In so doing, Canada could bolster economic diversification, reinforce access to key goods, and, ultimately, hasten the post-COVID economic recovery through the well-established economic benefits of free trade between free nations.

Supporting Taiwans ascension to the CPTPP is a win-win at a time when closer co-operation between democracies with shared values is desperately needed. It is our hope that we can count on Canadas support.

Winston Wen-yi Chen is the Representative at the Taipei Economic and Cultural Office in Canada.

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