Since signing its first Free Trade Agreement (FTA) with Panama in 2003, Taiwan has continually grappled with a deficit in its foreign economic and trade negotiation capabilities. Officials involved in those early negotiations noted that even when dealing with small to medium-sized economies, Taiwan’s lack of experience and professional expertise was apparent. They warned that without early cultivation of professional talent, facing larger economies or multilateral mechanisms in the future would inevitably incur steep costs. Over 20 years later, this issue remains unresolved and has only been magnified by shifting global dynamics.
Insufficient Negotiation Capacity Has Become a Structural Flaw
Da-Nien Liu, Director of the Regional Development Study Center at the Chung-Hua Institution for Economic Research (CIER), points out that Taiwan currently faces intense competition and complex challenges on critical fronts, such as advancing U.S.-Taiwan economic cooperation and bidding to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Amidst accelerating regional economic integration, the restructuring of global supply chains, and the constant emergence of novel issues, negotiation capability has escalated from a technical requirement to a matter of national strategy. However, Taiwan’s chronic shortage of high-level negotiators, coupled with imperfect foreign negotiation frameworks and inter-ministerial coordination mechanisms, has crystallized into a systemic bottleneck.
In recent years, the scope of international economic negotiations has expanded dramatically. Moving beyond traditional tariffs and market access, modern talks encompass digital trade, critical minerals, supply chain security, and industrial policy—fields highly intertwined with technological rivalry and national security. As nations utilize negotiations to rewrite rules and redistribute benefits, the caliber of a country’s negotiating power directly mirrors its national competitiveness. Consequently, establishing a competitive economic and trade negotiation architecture has become pivotal to elevating national power.
Establishing Long-Term Talent Cultivation to Accumulate Professional Capital
Director Liu argues that, on an institutional level, enhancing negotiation capacity requires, above all, the establishment of a core agency with substantive coordinating authority. This entity would integrate the positions of various ministries, streamline decision-making, and ensure Taiwan presents a unified, credible national stance in foreign talks. The crux lies not merely in organizational restructuring, but in granting sufficient mandate and decision-making power to guarantee the effective execution of negotiating strategies.
In terms of talent cultivation, Taiwan must institutionalize a long-term training system designed to groom experts across diverse economic and trade disciplines. By facilitating inter-ministerial rotations and international deployments, the government can elevate practical experience. Additionally, by integrating academic and think-tank resources, a mechanism should be established to accumulate knowledge and experience, preventing the loss of negotiating momentum after individual cases conclude and ensuring ongoing professional development.
Strategically, Taiwan must pivot from “passively seeking entry” to “proactively leveraging negotiations,” treating them as a vital instrument for driving industrial upgrading and national development. Comprehensive assessments of industrial impact and interest inventories should be conducted prior to talks. During negotiations, issue-swapping should be employed with agility. After negotiations, complementary policies must be enacted to guarantee the realization of outcomes and facilitate seamless industrial integration.
Fortifying Data Support and Public Discourse to Enhance Negotiation Resilience
Director Liu emphasizes that modern trade negotiations heavily rely on data analytics and real-time intelligence. Taiwan should integrate cross-ministerial data, combining it with international databases and private-sector research capabilities to sharpen its data-driven decision-making. The government must enhance policy communication and risk disclosure to forge social consensus, thereby minimizing internal resistance and ensuring the smooth advancement of negotiations.
Ultimately, under the rapid reshaping of global economic and trade rules, negotiation capability has become a paramount manifestation of national power. Taiwan must advance synchronously across institutional, human capital, strategic, and resource-integration fronts. By building a highly cohesive and forward-looking economic and trade negotiation architecture, Taiwan can supercharge its momentum in international participation and elevate its overarching competitiveness.
Source: Da-Nien Liu (April 24, 2026). Negotiation is National Power: Is Taiwan Ready? Economic Daily News. https://money.udn.com/money/story/5629/9460921