The Canadian government has decided not to sign a previously negotiated trade agreement with Taiwan, at least for now. This shift comes as Prime Minister Carney’s administration re-evaluates its global priorities and seeks to strengthen ties with China.
Details on the Trade Agreement with Taiwan
The agreement was successfully negotiated in March 2025 and covers various topics, including:
- Digital trade
- Energy transition
- Supply chain resilience
According to Cynthia Kiang, Taiwan’s Deputy Minister of Economic Affairs, Taipei has been waiting for Canada to sign the agreement since its conclusion. However, current Canadian officials suggest that immediate action is unlikely.
Political Context and Implications
A senior government representative, who requested anonymity, indicated that economic changes and the recent transition in Canada’s government have influenced this decision. They noted that the current administration has the right to review former government agreements based on present priorities and interests.
The pressure from the United States has also shaped Ottawa’s agenda. The Canadian official mentioned that the government must focus on critical issues impacting the economy and future.
Diplomatic Nuances
Canada refers to the arrangement with Taiwan as a “trade arrangement” rather than a “trade agreement” due to the lack of formal diplomatic relations stemming from its “one China” policy. Taiwan has operated as a de facto state since 1949, despite China’s claims.
Concerns from Taiwan
In February, reports suggested that Taipei suspected Ottawa was delaying the signing to maintain better relations with China. Taiwanese officials emphasize the importance of balancing relations with both Canada and China without compromising Taiwan.
François Wu, Taiwan’s Deputy Foreign Minister, expressed concern over Canada’s decision and urged the Canadian government to support Taiwan alongside its engagement with China, stating, “It is very dangerous” for Taiwan’s security if agreements are prioritized to appease China.
Economic Relationship and Future Prospects
Despite the stalled signing of the trade arrangement, relations between Canada and Taiwan have continued to grow. Taiwan, a global leader in advanced semiconductors, ranks as Canada’s 15th largest trading partner and was listed as the 20th largest economy in the world in 2025.
Both nations share democratic values and commitments to human rights. In 2022, Canada launched its Indo-Pacific Strategy, which includes three economic agreements with Taiwan. The Canadian official confirmed that collaboration continues to deepen even without the formal signing of the new trade agreement.
Conclusion
As these dynamics evolve, the balance between Canadian and Taiwanese interests amid Chinese economic pressures will be crucial for future cooperation. The dialogue remains open, with ongoing discussions about enhancing partnerships in various sectors.
