Taiwan-Canada Trade Agreement Faces Possible Delays

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Taiwan’s representative in Canada has expressed concerns regarding potential delays in finalizing a trade agreement between Taipei and Ottawa, suggesting that such delays may be motivated by a desire to maintain favorable relations with China. Harry Tseng, head of the Taipei’s Economic and Cultural Office in Canada, indicated that the trade co-operation framework agreement has been fully initialed and ready for signatures since April, with versions available in English, French, and Mandarin. Tseng emphasized the significance of the initialed pages, underscoring that they represent a completed document that warrants acknowledgment.

Taiwan, recognized as a de facto autonomous island by China, serves as Canada’s sixth-largest trading partner in Asia. The framework agreement outlines collaboration in various sectors, including online commerce, energy, net-zero transition, and supply chain resilience, notably for semiconductors. Tseng noted similarities to a previous agreement between the United Kingdom and Taiwan, highlighting the potential benefits of closer ties between Canada and Taiwan.

Tseng raised concerns that Canada’s actions may suggest a preference for improving relations with China at the expense of Taiwan, citing Prime Minister Mark Carney’s recent remarks advocating for trade diversification while being critical of superpowers. Carney, however, dismissed Tseng’s concerns, affirming Canada’s capability to engage in trade with both Taiwan and China, with a focus on enhancing trade relations with China.

Global Affairs Canada confirmed the conclusion of a trade co-operation framework agreement with Taiwan in March 2025 and indicated ongoing discussions on the next steps. Carney’s approach toward China has been pragmatic, as evidenced by a recent visit to Beijing to establish a new strategic partnership and remove tariffs. The decision to recall two Liberal MPs from a parliamentary trip to Taiwan was perceived by some, including Bloc Québécois MP Simon-Pierre Savard-Tremblay, as potentially aimed at appeasing China and delaying the trade agreement’s signing.

The Indo-Pacific strategy unveiled by the Canadian government in 2022 seeks to bolster economic and people-to-people connections with Taiwan while reinforcing its resilience. Despite Beijing’s stance against countries recognizing Taiwan as a separate state, Canada upholds unofficial but substantial relations with Taiwan through economic, cultural, and people-to-people exchanges.

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