Growing Canada-Taiwan Relations: Will the momentum continue?

By Adrienne Wu

The Canadian elections held on April 28 have once more elected a Liberal Celebration minority authorities. Contemplating that the Conservative Celebration had been leading national polls since mid-2023, the Liberals’ victory was a shocking upset aided by strained Canada-US relations. Whereas the reelection of a Liberal authorities signifies that there’ll probably be an general continuity in Canadian insurance policies, there are nonetheless questions concerning the power of cross-party help for Taiwan—and whether or not the present momentum in direction of nearer Canada-Taiwan relations will proceed.

Canada-Taiwan relations over the previous 5 years

Like many nations, Canada’s historic relations with Taiwan have fluctuated through the years. After Ottawa broke off official relations with the Republic of China in 1970, the federal government—in a fashion just like the US—established a “One-China Coverage” that “recognizes the [People’s Republic of China (PRC)] as the sole legitimate government of China, but neither endorses nor challenges the PRC’s position on Taiwan.”

Nonetheless, the 2 nations continued to interact informally by means of people-to-people exchanges. The institution of a Canadian Commerce Workplace (CTO) in Taipei in 1986 and the reciprocal institution of a Taipei Financial and Cultural Consultant Workplace (TECRO) in Ottawa in 1991 additional strengthened Canada-Taiwan ties. In consequence, from 2015-2019 bilateral commerce between Canada and Taiwan grew more than 15 percent, and a Canada-Taiwan avoidance of double taxation agreement was signed in 2016. Total, whereas the 2 nations have maintained ties and Canada’s One-China Coverage doesn’t bar it from Taiwan engagement, Ottawa has averted taking a transparent stance on Taiwan’s sovereignty because of considerations of frightening the PRC.

Nevertheless, there was a marked shift in Canada-Taiwan relations in recent times. Attributable to worsening Canada-PRC relations (triggered by Canada’s detainment of the PRC citizen Meng Wanzhou [孟晚舟], and the PRC’s subsequent detainment of Canadian residents Michael Kovrig and Michael Spavor) and rising PRC aggression, Canada launched its personal Indo-Pacific Strategy (IPS) in 2022. Concurrently noting that “China is an more and more disruptive world energy,” and that “Canada will oppose unilateral actions that threaten the established order within the Taiwan Strait,” the IPS additionally highlighted areas of cooperation with Taiwan and asserted that Canada would help Taiwan’s resilience.

Moreover, Canada additionally started to take a extra lively stance in direction of safety within the Taiwan Strait, with Canada and the US conducting their first joint naval transit by means of the Taiwan Strait in 2021 and additional joint transits occurring in 2022, 2023 and 2024.

In 2023, the discharge of an interim report by the Particular Committee on the Canada–Folks’s Republic of China Relationship, titled Canada and Taiwan: a Strong Relationship in Turbulent Times, additional examined the Canada-Taiwan engagement and outlined 34 suggestions for strengthening relations and supporting Taiwan. Framed inside the context of countering PRC aggression and selling Taiwan’s resilience, the report inspired elevated diplomatic engagement, nearer financial ties, and supporting Taiwan’s significant participation in multilateral organizations.

Moreover, it outlined particular areas of shared curiosity within the financial empowerment of indigenous populations (Taiwan and Canada are co-founders of the Indigenous Peoples Economic and Trade Cooperation Arrangement), disinformation, crucial minerals, semiconductors, and provide chain resilience. Upon the report’s publication, Taiwanese Consultant to Canada Harry Tseng (曾厚仁) emphasized that the great nature of the report made it the “most vital growth in Taiwan-Canada relations for the reason that two nations severed diplomatic ties in 1970.”

Since its publication, Ottawa has addressed lots of the suggestions made within the report. As an example, Ottawa carried out Advice 11 and signed a Foreign Investment Promotion and Protection Arrangement (FIPA) with Taiwan in December 2023. After the institution of a FIPA, Taiwan direct investment in Canada has elevated dramatically, leaping from CAD 2.2 billion (roughly USD 1.6 billion) in 2023 to CAD 7.3 billion (roughly USD 5.3 billion) in 2024. Commerce between Taiwan and Canada has additionally benefited from the 2024 signing of a Mutual Recognition Agreement on Authorized Economic Operators and their shared endorsement of a “Collaborative Framework on Supply Chains Resilience,” each of which purpose to make provide chains safer and mutually helpful.

In 2023, Canada additionally succeeded in getting Taipei to calm down restrictions on Canadian beef. From February 2024 to February 2025 Canada’s beef and veal exports to Taiwan elevated by 26.3 %. Past agriculture and direct funding, Canada and Taiwan additionally signed a Science, Technology, and Innovation Agreement in 2024 to increase cooperation in key sectors, similar to synthetic intelligence (AI), biotechnology, and semiconductors.

Along with nearer financial ties, Canada has additionally been lively in its diplomatic engagement with Taiwan. As an example, Canadian parliamentary delegations visited Taiwan in April 2023 and May 2024. Each delegations had been led by Liberal members of parliament (MPs) and included Liberal, Conservative and Bloc Quebecois MPs, which exhibits that Canada’s help for Taiwan cuts throughout social gathering traces. Notably, two Canadian MPs (from the Liberal and Bloc Quebecois events) additionally attended the Inter-Parliamentary Alliance on China’s (IPAC) Taipei Summit. In distinction, no US members of IPAC attended the summit.

Following former President Tsai Ing-wen’s (蔡英文) attendance on the 2024 Halifax Worldwide Safety Discussion board (held in Halifax, Nova Scotia), the primary Asian iteration of the discussion board happened in Taipei in February of this 12 months. Whereas the total visitor listing for the occasion has not been made public, former Defense and Foreign Affairs Minister Peter MacKay was amongst those that attended. Peter MacKay was additionally among the many audio system at Taiwan’s 2022 Yushan Forum, which focuses on Taiwan’s New Southbound Coverage, and former Industry and Health Minister Tony Clement attended the 2025 Yushan Discussion board.

Canadian participation in IPAC’s Taipei Summit, Taipei’s Halifax Safety Discussion board, and the Yushan Discussion board—which span matters from countering PRC aggression, to protection and safety and regional ties—highlights the wealth of shared pursuits between Taiwan and Canada. In mid-2024, Canada additionally joined Taiwan, the US, Japan, and Australia in turning into a full accomplice of the World Cooperation and Coaching Framework (GCTF). Finally 12 months’s 2024 GCTF Joint Committee Meeting, the companions outlined key areas for 2025, together with stopping drug-related crimes, whole-of-society resilience, power sustainability, public-private partnerships in humanitarian help and catastrophe aid, and utilizing media literacy to counter info manipulation and interference.

What’s Subsequent?

Main as much as the 2025 elections, some had raised considerations about prime minister Mark Carney’s past ties to China. Moreover, it was evident that Beijing preferred a Carney victory. Hurting from US tariffs, a Liberal authorities below Carney may be tempted by the economic incentives of nearer ties with China. But, forward of the election, prime minister Carney affirmed that China is Canada’s largest risk and that it’s “a risk inside broader Asia and to Taiwan.” The Asia Pacific Basis of Canada noted that prime minister Carney is “prone to hold China at an arm’s size” whereas strengthening ties with Japan, South Korea, Australia and doubtlessly India. If Canada stays adamant that China is a risk, then it might want to search out extra companions because it refines its Indo-Pacific insurance policies—which can also be a possibility for Canada-Taiwan relations to proceed to thrive.

To construct upon the present momentum, Ottawa ought to: Proceed to counter the PRC’s misuse of United Nations (UN) Decision 2758 and reaffirm that Canada’s “One-China Coverage” doesn’t bar Canadians from partaking with Taiwan.

After the IPAC Taipei Summit, Canada’s Home of Commons unanimously handed a motion that UN Decision 2758 “doesn’t set up PRC sovereignty over Taiwan nor decide Taiwan’s future standing within the UN or any worldwide businesses.‍” Whereas this is a vital step in countering the PRC’s efforts to isolate Taiwan by means of using lawfare, the movement alone is just not sufficient. Ottawa ought to be sure that Canadians—and particularly authorities staff—are conscious of the distortion of UN Decision 2758 and perceive that Canada’s “One-China Coverage” doesn’t bar engagement with Taiwan. As College of Ottawa Professor Scott Simon has noted, “As a sovereign state, Canada has the correct to outline that coverage and decide our personal relationship with Taiwan with out exterior interference.”

By making Canadians conscious of those variations between these stances, they are going to each grow to be much less susceptible to PRC coercive efforts that isolate Taiwan and can achieve a greater understanding of Taiwan’s geopolitical context.

• Proceed asserting the significance of peace and stability within the Taiwan Strait by means of joint naval transits, regional protection cooperation, and statements of help for Taiwan.

The Canada-US joint naval transits from 2021 to the current have helped to advertise Canada as a dependable accomplice within the Taiwan Strait. Nevertheless, Canada might take a better function as a accomplice by becoming a member of regional safety partnerships just like the Quadrilateral Security Dialogue (the Quad) or AUKUS. Extra informally, Canada also needs to search for methods to extend cooperation with Taiwan’s coast guard and on defense training, simply as the US does already. Moreover, Ottawa ought to proceed to push again on PRC efforts to determine a brand new regular within the Taiwan Strait by condemning PRC incursions, because it did within the recent G7 statement.

• Discover areas of shared curiosity between Canada and Taiwan, particularly in the case of Canada’s Indo-Pacific Technique and Taiwan’s New Southbound Coverage (NSP). 

Canada-Taiwan relations over the previous 5 years have grown a lot as a result of abundance of shared pursuits between each nations. Nevertheless, there are nonetheless alternatives to construct additional on these shared pursuits. As an example, though Taiwan and Canada have already signed agreements on funding promotion and science and know-how, former MP Tony Clement has urged Canada and Taiwan to work much more carefully on AI know-how and provide chain resilience. Along with AI, Canada and Taiwan might accomplice on tackling shared world challenges like countering disinformation, power sustainability, and international assist packages.

Worldwide Christian College Professor Stephen Nagy has additionally pointed out that Canada’s IPS overlaps considerably with Taiwan’s NSP—making Taiwan a dependable like-minded ally as Canada pursues Canadian pursuits within the Indo-Pacific.

• Move laws that creates a basis for nearer Canada-Taiwan relations, such because the Canada-Taiwan Relations Framework Act.

In 2021, Conservative MP Michael Cooper launched the Canada-Taiwan Relations Framework Act, often known as Invoice C-343. The Act clarifies Canada’s “One-China Coverage,” promotes protection cooperation between Canada and Taiwan, and helps Taiwan’s participation in multilateral worldwide organizations. Nonetheless—as of this text’s publication—the Act has not undergone a second studying. To construct upon the momentum of current Canada-Taiwan cooperation, Canadian policymakers ought to prioritize passing laws that may create a robust basis for all future Canada-Taiwan relations—both by revisiting Invoice C-343 or by creating new laws. As a place to begin, Ottawa might take a look at present US-Taiwan laws such because the Taiwan Relations Act or Taiwan Allies Worldwide Safety and Enhancement Initiative (TAIPEI) Act, and tailor such laws to Canada-Taiwan relations.

The primary level: Over the previous 5 years, Canada-Taiwan relations have grown in a number of areas, together with nearer financial ties, elevated diplomatic engagement, and signed agreements referring to shared areas of curiosity. To construct upon this momentum, a brand new Liberal authorities ought to proceed to make clear Canada’s “One-China Coverage,” assert the significance of peace and stability within the Taiwan Strait, construct upon areas of shared curiosity between Canada and Taiwan, and go laws that creates a robust basis for future Canada-Taiwan relations.