Taiwanese President Lai Ching-te issued a powerful call on Monday for the establishment of a comprehensive economic partnership agreement with the European Union. This ambitious proposal, he argued, would significantly enhance cooperation in crucial sectors like semiconductors, bolstering economic resilience for both sides and strengthening global supply chain stability. The move underscores Taiwan’s proactive approach to navigating its complex geopolitical landscape and forging stronger international alliances.
The proposed agreement holds significant political weight for Taiwan, given its limited diplomatic recognition and exclusion from many global organizations. This initiative represents a bold strategy to elevate Taiwan’s international standing and foster deeper economic ties with a major global player. The EU, for its part, is actively courting Taiwan as a key partner under the European Chips Act, seeking to reduce its dependence on Asian semiconductor manufacturers and diversify its supply chains. This mutual interest in strengthening semiconductor collaborations forms the bedrock of the proposed agreement.
Speaking at a Taiwan-EU investment forum in Taipei, President Lai emphasized the shared democratic values of Taiwan and the EU as a basis for this strategic partnership. He highlighted the growing threat of authoritarianism and stressed the need for a ‘strong democratic umbrella’ to safeguard shared interests and secure global supply chains. The proposed agreement, according to President Lai, would lay a robust foundation for expanded collaboration in emerging technologies such as artificial intelligence (AI), further enhancing economic security and resilience.
The partnership is already gaining traction, with significant Taiwanese investment in the EU, particularly through Taiwan Semiconductor Manufacturing Co (TSMC). TSMC’s substantial new chip plant in Dresden, Germany, is poised to become a crucial supplier to European industries and automakers, signifying the tangible benefits of this growing economic relationship. While Maria Martin-Prat, deputy head of the European Commission’s directorate general for trade, didn’t explicitly endorse the proposed agreement in her video message to the investment event, her praise of Taiwan as a ‘trusted partner’ for economic security suggests a receptive climate for future negotiations.
Taiwan’s proactive pursuit of this agreement is further exemplified by its recent achievements: an Enhanced Trade Partnership with Britain last year, and its application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This demonstrates a concerted effort to broaden its economic reach and solidify its position within the global economic order. The success of this ambitious bid for an EU economic partnership will be a significant test of Taiwan’s diplomatic capabilities and a crucial development in the evolving geopolitical landscape of the Indo-Pacific region.
