Introduction
This essay assesses Taiwan’s prospects for joining the Trans-Pacific Partnership (TPP) and recommends options for how Taiwan can overcome the challenges related to gaining membership.
Taiwan is an important exporter and investor in the Asia-Pacific, but its economic role in the region is diluted by its exclusion from regional trade deals, which have increased in both number and significance. As more free trade and regional trade agreements are signed, Taiwan needs to find ways to knit itself into the region’s economic and commercial fabric. The most significant—and timely—region-wide trade liberalization deal is the TPP. For Taiwan, the benefits of TPP membership would be twofold: (1) TPP standards would necessitate broad reforms, making the island more competitive, and (2) membership would create trade diversification, thereby reducing economic dependence on the mainland. Taiwan now has an opportunity to take the necessary steps toward membership. If it does, the island will improve its competitive position in the region. But if it remains a bystander, its competitiveness will erode. TPP membership would enable Taiwan to retain and improve its status as a strong economic player in the Asia-Pacific.
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