U.S. President Donald Trump has imposed additional tariffs on countries worldwide under various pretexts. Nations are simultaneously engaging with the U.S. to minimize damage while seeking more opportunities for alliance to jointly address the chaotic global trade order.
The importance of large-scale regional trade agreements has grown, as they not only foster trade through economically liberalized environments to mitigate the impact of U.S. trade protectionism but also leverage existing cooperation mechanisms to counter U.S. actions disrupting the global trade system.
For instance, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has recently gained increased attention. CPTPP members are generally affected by U.S. tariff policies, with countries such as Mexico, Vietnam, Japan, and Canada, which have significant trade surpluses with the U.S., being the most heavily impacted and primary targets of U.S. sanctions. The U.S. maintains a hardline stance that puts other countries at a disadvantage during negotiations. This approach has led to strong calls within the CPTPP to collectively defend a rules-based trade system, enhance cooperation, and expand alliances.
Consequently, the CPTPP is exploring partnerships with other trade organizations, such as the European Union, with which it previously had little interaction but is now engaging more closely. The EU, on the verge of a trade war with the U.S., views an alliance with the CPTPP as a “Plan B” to counter U.S. disruption of the global trade system. CPTPP members also support cooperation with the EU. Although currently at the preliminary stage of expressing views, both the CPTPP and the EU emphasize institutional frameworks and free trade, offering potential for future collaboration.
Beyond deepening internal cooperation, the CPTPP has recently signaled plans to actively expand its membership. Under the Trump administration’s tariffs and trade protectionist measures, the CPTPP is prioritizing market openness and supply chain stability, placing greater emphasis on the economic strength of new members. Taiwan should seize this opportunity to bolster its economic influence.
Taiwan formally submitted its application to join the CPTPP in September 2021. However, it has yet to secure a working group necessary to enter negotiation status. Among the 7 applicants (China, Taiwan, Ecuador, Costa Rica, Ukraine, Uruguay, and Indonesia), only Costa Rica’s working group was approved last year aside from the already admitted United Kingdom. Among the applicants, Taiwan boasts the highest per capita GDP, the most advanced industrial development, and a trade system most aligned with CPTPP standards. However, non-economic factors and geopolitical considerations have repeatedly hindered Taiwan’s efforts to join the CPTPP.
The CPTPP’s current focus on the economic influence of new applicants favors Taiwan, but Taiwan must still overcome several unfavorable factors. First, China is aggressively seeking broader support while actively blocking Taiwan’s CPTPP application. Australian Prime Minister Anthony Albanese, who is expected to visit China later this year, has previously expressed reservations about Taiwan’s membership in the CPTPP. He views the CPTPP as an agreement among “recognized nations.” While Australia has since clarified its position, it has not formally supported Taiwan’s bid. However, it did recently express public support for Indonesia’s application, which was submitted in September of last year.
In summary, Taiwan must leverage its industrial strengths, robust supply chains, and mature trade system to counter geopolitical challenges and successfully gain entry into the CPTPP.
Author: Da-Nien Liu, Director of the Regional Development Study Center, Chung-Hua Institution for Economic Research
Source: China Times, A10, May 30, 2025