Taiwan pushes for trade agreement with Japan
Taiwan News | 14 February 2025
Taiwan pushes for trade agreement with Japan
TAIPEI (Taiwan News) — Taiwan’s foreign ministry is pushing Japan to initiate discussions on a bilateral trade deal.
Foreign Minister Lin Chia-lung (林佳龍) has instructed Taiwanese diplomats in Tokyo to lobby the Japanese government, Nikkei Asia reported. However, Japan faces concerns that an economic agreement with Taiwan could upset its relationship with Beijing.
Taiwan hopes Japan will be its next partner to sign a trade agreement, after Taipei signed an Enhanced Trade Partnership with the UK in 2023. China reacted angrily, telling UK officials to “stop using trade cooperation as an excuse to engage in official exchanges or enhance substantive relations with Taiwan.”
Lin said in the Nikkei interview, "We hope that Taiwan and Japan can speed up the signing of the economic partnership agreement.” He believes a deal will increase Taiwan’s chances of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Tokyo-based analyst Dee Wu said Donald Trump’s presidency in the US could make Japan more cautious about its relationship with Taiwan and China. He said Tokyo may prioritize stable relations with China, especially given concerns about a US-Japan trade dispute.
National Taiwan University professor Liao Hsiao-chuan (廖小娟) said Japan might prefer to avoid big agreements like an EPA, which would generate headlines that upset China. Instead, Tokyo could agree to smaller bilateral agreements on specific issues or industries.
Liao said that late Prime Minister Abe Shinzo was supportive of a bilateral trade deal, but it was hindered by Taiwan’s ban on Japanese products after the 2011 Fukushima nuclear disaster. In July, Taiwan’s government liftedthe decade-long ban on Fukushima food imports, which could present a new opening for trade talks.
Taiwan and Japan have signed an investment treaty, a double taxation avoidance agreement, and a customs agreement, which could serve as a base for a stronger economic partnership.
