The strategic vision for Taiwan’s trade policy is clear: to ensure that Taiwan remains a competitive, innovative, and responsible player in the global economy. Through its comprehensive approach to trade negotiations, the Office of Trade Negotiations (OTN) has embarked on a journey to strengthen bilateral relations and leverage opportunities at a time when the world shines its spotlight on Taiwan.

Recent changes in the global geopolitical landscape have underscored the importance of cultivating bilateral trade relations. Taiwan, recognizing this dynamic, sees it as a strategic opportunity to enhance its trade partnerships.

Last year was a year of success for OTN, with significant progress made in negotiations with the United States, the UK, and Canada. “We’re very pleased with the progress made,” says John Deng, OTN’s chief trade representative. “Now we need to continue to deepen those negotiations.”

Significant progress in the trade relationship with the United States was made when the first agreement under the U.S.-Taiwan Initiative on 21st-Century Trade framework was signed in June 2023. Negotiations on the second part of the initiative, covering labor, agriculture, and environment, are ongoing.

Discussion topics have included food security, innovative agricultural technology, enforcement of International Labor Organization standards, strengthening the voices of workers, decarbonization, and corporate accountability.

“We had a productive in-person meeting in Washington, D.C. last year, and several virtual intersessional meetings since,” says Deng. “These discussions have helped us learn about the successes of the U.S. Customs and Border Protection in tackling the problem of forced labor products and how the United States has implemented requirements in international environmental agreements.”

By creating working groups covering specific trade areas, Taiwan and the United States have created direct communication channels to aid the swift implementation of agreements and solve specific issues.

“There’s still a lot of work to be done, but we are making good progress and hope to see further movement soon,” says Deng. Once a second agreement has been reached, the two sides will tackle the final trade areas under the framework, which includes digital trade.

“Many AmCham members are leaders of technology, and I believe they would like to work in an environment that allows them to do more business,” says Deng. “Stable and clear government rules and agreements will help provide them with a good basis for growing their business.”

The success of the 21st-Century Initiative talks has also helped pave the way for productive discussions with other countries. In late October, Taiwan and Canada completed negotiations over a Foreign Investment Promotion and Protection Arrangement, representing a pivotal step in the strengthening of bilateral ties.

Less than two weeks later, Taiwan and the UK signed an Enhanced Trade Partnership Arrangement, laying a solid foundation for long-term economic and trade relations. The hope is to yield tangible results within the year. Taiwan-UK trade in 2023 was worth more than US$10 billion according to the UK’s Department for Business and Trade.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) remains a top priority for Taiwan, highlighting the strategic importance of regional trade agreements in Taiwan’s trade policy.

“Since our application has been under process for more than two years, we hope it will be processed in the upcoming year,” says Deng. Canada is chairing the trade group in 2024 and is responsible for handling the applications from Taiwan and China. But despite uncertainties about Taiwan’s application, OTN is actively seeking ways to engage and advance its position within this crucial trade framework.

The New Southbound Policy, aimed at enhancing economic collaboration with countries in Southeast Asia and South Asia, is another pillar of Taiwan’s trade strategy. This policy reflects Taiwan’s commitment to diversifying its trade partnerships and expanding its economic influence in the region.

“We already have a strong foundation in our relationship with this region, and there are opportunities for the private sector to expand their operations there,” says Deng. “We’re very satisfied with the results we’ve seen in terms of investment and trade with South and Southeast Asia.”

Looking ahead, OTN is poised to continue its vital work in 2024 and beyond, with an agenda that includes further deepening existing trade relationships, exploring new trade agreements, and addressing global economic challenges.

By continuing to engage proactively with international partners, advocating for fair and sustainable trade practices, and harnessing the opportunities presented by the digital economy, Taiwan can solidify its position as a vital player in the global trade arena. To enable this success, constructive dialogue with and input from industry is vital.

“We are very happy to see that AmCham members are committed to Taiwan, and we appreciate the Chamber’s work in keeping the momentum going,” says Deng. “Meanwhile, we will continue to do our part to create a more open and inducive trade climate.”