Beyond Geopolitics – The Case for a Free Trade Accord between Europe and Taiwan

This paper discusses the economics and geopolitics of EU Taiwan commercial relations and weighs the case for a free trade agreement (FTA) between them. There is a widespread belief that China will oppose an EU-Taiwan FTA. The recent cross-Straits rapprochement, recently crowned by a trade agreement, could provide a window for Taiwan to sign trade deals with other partners. An FTA with Taiwan would boost some of Europe’s most competitive sectors in ICT, automotives, pharmaceutical products, and telecommunications, financial, business, transport and environmental services. Taiwan needs to position itself as a production platform for global markets. Taiwan is member of the World Trade Organisation – legal obstacles to an EU Taiwan FTA are minimal. But China needs to be reassured that the agreement does not involve recognition of Taiwan’s formal statehood.