European Commission Directorate-General for Trade

Taiwan

Trade between the EU and Taiwan has increased more than eightfold over the past two decades. The EU is Taiwan's fourth trade partner after China, the USA and Japan. In 2009, Taiwan was the EU's seventh largest trading partner in Asia after China, Japan, South Korea, India and Singapore, and the EU's 19th largest global trading partner with a total trade volume of about €27.5 billion. The bilateral trading volume shrank in 2009 by €8.2 billion, compared to 2008.

The normalization of Cross Straits relations and the further liberalization of economic, trade and investment links between Taiwan and the mainland, in particular with the Economic Cooperation Framework Agreement, signed on 29 June 2010 is having a positive impact on Taiwan's economy.

The EU has a chronic trade deficit with Taiwan (in 2009 at €7.5 billion, down from €12.5 billion in 2008). This is mainly due to the EU's export deficit in goods, not offset by its export surplus of €1.0 billion in services (2008 figures). Bilateral trade relations are regularly discussed in trade consultation, held annually between the European Commission and Taiwan's authorities. Here all trade policy issues are addressed, including WTO obligations and issues of bilateral concern. Within the annual consultation mechanism four technical working groups were established on Intellectual Property Rights, Automotive, Pharmaceutical and SPS issues in 2007. Being tools of the consultation mechanism, they deal in greater detail with issues of regulatory or technical character an. At the 20th bilateral consultation meeting in 2008, the EC and Taiwan agreed on mid-term progress reviews to be conducted between the annual consultation meetings, which should further step up the results orientation of the bilateral consultation mechanism on EU-Taiwan trade relations.

Taiwan is the EU's seventh largest trade partner in Asia.

EU policy on Taiwan

Following its 'one-China' policy the EU does not have diplomatic or formal political relations with Taiwan. The EU however supports Taiwan's meaningful participation in multilateral fora, especially where Taiwan's participation is important to the EU and global interests.

The EU has solid economic and trade relations with Taiwan as well as in areas of mutual interest, including environment, science, health, culture and education, and addresses issues of mutual concern in these areas in the context of the bilateral consultation mechanism between Taiwan and the European Commission. With the establishment of the European Commission 'European Economic and Trade Office (EETO)' in Taipei in 2003 bilateral relations in these areas have further intensified.

Since its foundation in 1988 the European Chamber of Commerce Taipei (ECCT represents the interests of EU business in Taiwan with to-date 28 established sector committees.

Taiwan in the World Trade Organisation

Taiwan, a WTO member since 2002 fulfilled in December 2008 an important WTO accession commitment by joining the Government procurement Agreement (GPA).