CPTPP, TAIWAN is Ready!

Taiwan officially submitted an application on Sep 22, 2021 to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This not only represents an important process for Taiwan's external trade but also marks a major step forward in Taiwan's ambitions for participating in regional economic integration since joining the World Trade Organization.

 

Benefits of Taiwan’s Membership to the CPTPP

Taiwan is a strong supporter of free and open trade.

  • As an APEC and a WTO Member, Taiwan has not only adhered to the rules in multilateral trading system, but also actively participated in further trade liberalization. 
  • Participation in bilateral and regional economic integration has been the flagship in our trade policy. 
  • Our bilateral agreements, including the comprehensive and high-standard Free Trade Agreements with New Zealand and Singapore, reflect our commitments to greater market access in the Asia-Pacific region and around the world. 

Taiwan has a modern, mature, and market economy with good healthy trade ties with CPTPP countries.

  • Taiwan is amongst top 20 trading economies in the world. 
  • In 2021, CPTPP Members will also gain better competitive advantage among the $380 billion USD worth of imports entering our market each year once Taiwan joins. 
  • 21% of our export goes to CPTPP countries and 28% of our import comes from CPTPP. CPTPP as a bloc enjoys a surplus of $13 billion USD in 2021.
  • 5 out of 11 CPTPP countries are Taiwan’s top 10 trading partners, namely Japan, Singapore, Malaysia, Viet Nam and Australia.

Taiwan shows good governance in the Covid-19 crisis.

  • Taiwan’s resilience and stability also make it a strong candidate for CPTPP membership. In 2020, we outperformed most countries during the COVID-19 pandemic, by posting a GDP growth rate of 3.36%. In 2021, this trend continued with a growth rate over 6%.
  • Time and time again, Taiwan has proven to be a reliable and trustworthy trading and economic partner, and CPTPP Members will no doubt benefit from our further integration into the region’s supply chain.

Taiwan plays a crucial role in global supply chain.

  • According to the OECD Trade in Value-Added statistics, Taiwan ranked second in the participation rate of global value chains among current CPTPP Members. This demonstrates Taiwan’s existing strong integration to the CPTPP value chain. Our open and free economy and indispensable role in the global supply chain offers us as an ideal candidate for CPTPP accession and further regional economic integration. 
  • As an ITC industry powerhouse, Taiwan’s CPTPP membership would greatly enhance the stability and security of the Indo-Pacific region. Its economy is strategically important, and it is also a democracy that champions and upholds rules-based international trade system, which is a safe and reliable critical manufacture and infrastructure—power, transportation, and sanitation systems—are based on.

Taiwan has prepared and stood ready for the CPTPP membership.

  • Taiwan started its preparation for the membership even since the TPP text was released in 2016. We looked closely at the text and have been bridging the gap between our domestic regime and the Agreement. Nine major items in our laws has been amended in fishery, medical devices, IPR protection, to modern areas like environment, delivery services and patent systems for pharmaceuticals.
  • By 100% committing ourselves to the CPTPP rules and standards, we embrace, without reservation, CPTPP objectives to promote economic integration, strengthen worker’s protection, raise living standards, reduce poverty, and promote sustainable growth. 

Taiwan is determined to follow international trade rules. 

  • On December 18, 2021, over 8 million people went to the polls in a referendum. The majority of our people supported the policy regarding the ractopamine in imported meat products proposed by the government. The outcome gives us fresh mandate to push for a more open, rules and science-based economy that integrates with the world.
  • On February 21, 2022, Taiwan also lifted an import ban on food products from Fukushima and four other Japanese prefectures imposed in the wake of the 2011 Fukushima nuclear disaster. Under the new regime, border measures will be based on risks - a change from the ban based on the production areas.
  • Reflecting on these important decisions, we will continue to enhance our trade regime, making it even more trustworthy and open while protecting our people with science-based standards.

Links:
Office of Trade Negotiations, Executive Yuan
CPTPP, TAIWAN is ready!