Taiwan’s president calls for EU economic partnership

Taiwan President Lai Ching-te urged the European Union (EU) to sign an economic partnership agreement to enhance cooperation in semiconductors.

Taiwan seeks investment and trade deals with the EU to overcome its diplomatic isolation and exclusion from global bodies and agreements.

The EU has been seeking closer ties with Taiwan as a “like-minded” partner through the European Chips Act. This initiative aims to boost semiconductor production in Europe and reduce reliance on Asia, even though there are no official diplomatic relations with the island, which is claimed by China.

“Looking to the future, Taiwan hopes to take an innovative approach towards the signing of an economic partnership agreement with the EU,” he said.

Lai emphasised that such an agreement would establish a strong foundation for collaboration in semiconductors and AI, benefiting both economies and ensuring the stability of global supply chains.

Taiwanese investment in the EU is growing, with Taiwan Semiconductor Manufacturing Co (TSMC) leading the way. TSMC recently opened a new chip plant in Dresden, Germany, expected to supply European industries and automakers.

Maria Martin-Prat from the European Commission did not mention any specific deals with Taiwan in a recent video message, but she did highlight the strong bilateral relations.

Taiwan, a vibrant democracy with an open economy, is a trusted partner in promoting the economic security, she added.

Taiwan has limited free trade agreements, but recently signed an Enhanced Trade Partnership with Britain and is seeking to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Attribution: Reuters

Subediting: M. S. Salama