Why closer ties between Taiwan and Ontario is a win-win strategy

The current announcement by Taiwan and Canada to start talks on the International Funding Promotion and Safety Settlement (FIPA) is welcoming information. It's also excessive time now for Canadian provinces, and Ontario particularly, to comply with the lead of the federal authorities in recognizing Taiwan’s significance and additional increasing relations with this financial powerhouse in Asia.

Solely a bit greater than Vancouver Island, Taiwan is however Canada’s sixth-largest buying and selling accomplice in Asia, and Ontario’s fifth-largest buying and selling accomplice in the identical area. Like Canada, Taiwan embraces the values of democracy, freedom and human rights.

With most economies worldwide shrinking drastically underneath the impression of the COVID-19 pandemic, Taiwan is greater than doing properly — it's flourishing. Taiwan’s GDP grew 3.11 per cent in 2020, outpacing most international locations. In 2021, the expansion charge was 6.1 per cent, the quickest tempo in a decade. The nation’s robust efficiency could be attributed to the worldwide demand for its know-how merchandise.

As a key hub within the world know-how provide chain, the Taiwanese business performs a pivotal position within the worldwide market. The Taiwan Semiconductor Manufacturing Firm (TSMC) has over 50 per cent of the market share in semiconductor foundry enterprise, whereas Foxconn is the long-term champion of unique tools producers (OEM) in shopper electronics. MediaTek ranks fourth within the top-10 built-in circuit (IC) design corporations, whereas ASUS and Acer collectively account for 14 per cent of the worldwide private pc market. All of Taiwan’s high-tech corporations display the significance of Taiwan.

For the reason that launch and implementation of the New Southbound Coverage in late 2016, Taiwan has established robust commerce and funding ties with Southeast Asian international locations, in addition to India. As Asia more and more turns into an engine of worldwide financial development, Taiwan is a crucial buying and selling accomplice that may broaden Canada’s commerce and financial pursuits within the Asia-Pacific area. This explains why many multinational corporations, corresponding to Google, Microsoft, IBM, Amazon, Apple, Meta (Fb) and Qualcomm, have chosen to determine their Asian workplaces or branches in Taiwan.

Taiwan’s financial construction is complementary to that of Canada generally, and Ontario particularly. For instance, Ontario’s essential exports to Taiwan are cars, metals and soybeans. Taiwan’s largest exports to Ontario are computer systems, telecommunications tools and microchips. Nevertheless, the overall bilateral commerce between Taiwan and Ontario was solely $3.4 billion in 2020, and $2.7 billion for January-August 2021. The 2 areas have to work more durable to extend this quantity. We additionally look ahead to extra mutual funding, though funding from Taiwanese corporations corresponding to TSMC, Delta Worldwide, Bora Prescription drugs and LCY Biotech has elevated lately.

To construct a stronger partnership, Ontario and Taiwan can work collectively on a number of issues, corresponding to supporting Taiwan’s accession to the Complete and Progressive Settlement for Trans-Pacific Partnership (CPTPP) and dealing in direction of signing a FIPA between Canada and Taiwan. Multilateral and bilateral agreements fall underneath the jurisdiction of the Canadian federal authorities. Nevertheless, coming into into these agreements with Taiwan will profit Ontario’s worldwide commerce and funding.

One measure that Ontario might actually contemplate with a view to strengthen its ties with Taiwan can be to determine a global commerce and funding workplace in Taipei. This may assist Ontario increase its enterprise profile in Taiwan and promote its merchandise there, and entice clear and high-tech funding from Taiwan to Ontario. That is in keeping with Ontario’s sectoral deal with synthetic intelligence, 5G, fintech, digital media, cybersecurity and diversified export markets.

Given the frequent values of democracy and freedom and the complementary financial construction of the 2 sides, Taiwan and Canada can work collectively to assist one different totally combine into and have interaction with the remainder of the Indo-Pacific area.

With sustained financial development and respect of the rule-base order, Taiwan and Canada will proceed to pursue a win-win technique. Ontario, as Canada’s largest financial system, can play an vital position on this joint effort.