Taiwan's inclusion in the TPP could be Canada's win

In trade, the more partners you bring to the dance the better off you’ll be. Canada has quite rightly prioritized the Trans-Pacific Partnership negotiations as the key to increasing its business around the world but the dance doesn’t end there. International trade experts are turning their attention to widening the TPP list. We need to be leaders in extending open trade to economies of the future. Taiwan is key among them.

Taiwan, already Canada’s fourth largest trading partner in Asia, is a natural gateway to China. A country with a strong rule of law, well-educated work force and reliable transportation infrastructure, Taiwan sits at the very centre of all trade in Asia. It should be the next country on the list of TPP countries and Canada should be at the front of the line in promoting its membership.

Simply ask one of the Canadian companies who has benefited from its relationship with Taiwan and the business potential for Canada is clear...

Freer access to Taiwan’s markets would create investment opportunities, increase demand for Canadian goods and services, and facilitate partnerships for Canadian innovators looking to commercialize their products. Taiwan’s accession to the TPP would benefit Canada, Taiwan, and all TPP partners.

The TPP without Taiwan will generate limited economic gains because most countries involved already have free trade agreements with each other. The addition of Taiwan will increase potential trade liberalization benefits by nearly 30 per cent.

Between 2001 and 2013, Taiwan outpaced the current TPP members in terms of growth of its import market for goods, with an 8 per cent average growth, compared to 7.2 per cent average growth for other original TPP members.

A little digging reveals the emerging success story between Canada and Taiwan. Canada’s leading exports to Taiwan are commodities and raw materials but Canadian firms also take advantage of Taiwan’s ingenuity and market access advantages through investment in financial services, trading companies, electronics and electrical products, plastics and transportation.

Taiwan’s world-class information and communications technology industry provides manufacturing, research and development, and distribution support for some of the world’s leading technology companies...

Taiwan is one of the largest investors in mainland China and is a vital link to Asian supply chains serving as a contract manufacturer for major foreign brands. Taiwan’s intellectual property rights regime is aligned with the high standards of G7 trading partners.

Taiwan is a member of the WTO and has recently concluded comprehensive trade liberalizing agreements with Singapore and New Zealand. Pursuant to the Cross-Straits Economic Framework Agreement with China, Taiwan is negotiating expanded preferential access to the world’s most dynamic economy. The Taiwan-US Trade and Investment Framework Agreement provides Taiwan with a strong base for future North American trade.

Robust participation in external trade negotiations and a top-to-bottom internal review of domestic reform priorities underscores Taiwan’s readiness to meet the high standards of Trans-Pacific Partnership commitments.

Canada should recognize Taiwan’s impressive commitment to regulatory reform and encourage continued liberalization as a pathway to the TPP and begin negotiations for a Canada-Taiwan Foreign Investment Promotion and Protection Agreement.

Canada’s economic growth in the world depends on stretching itself beyond its trade comfort zone and looking ahead to the next step and new partners, like Taiwan for success.

This opinion piece was written by Laura Dawson, expert in international trade and cross-border issues, for the Embassy News.