- Country or region
- Chinese Taipei
- Trade topics
- Negotiations and agreementsTrade policy
Trade between the EU and Taiwan has increased more than eightfold over the past two decades. However, the EU has a trade deficit with Taiwan, which it would like to tackle.
Taiwan has been a WTO member since 2002, and in December 2008 the country fulfilled an important WTO accession commitment by joining the WTO Government Procurement Agreement.
- Taiwan was the EU’s 15th biggest trading partner in 2018.
- The EU is Taiwan's fourth trade partner after China, the USA and Japan. In 2018, Taiwan was the EU's seventh largest trading partner in Asia.
- EU exports to Taiwan of semi-finished products, machinery and transport equipment confirm the EU's position as an important industrial supplier for Taiwan's industry.
- In terms of the size of exports and imports, office telecommunications equipment, machinery, transport equipment and chemicals are by far the most traded commodities between the EU and Taiwan.
- Taiwanese imports of services from the EU are dominated by transportation, business, travel and financial services. Taiwanese exports of services to the EU are dominated by sea transportation and business services.
- In recent years the EU has been the major source of foreign direct investment in Taiwan. On the other hand, Taiwanese investments in the EU only represent some 2% of Taiwan’s global FDI stocks.
- The EU has a trade deficit with Taiwan. This is mainly due to the EU's export deficit in goods, not offset by its export surplus in services.
- Given that the EU is the world's biggest exporter of agricultural products, EU agricultural exports to Taiwan are significantly low. EU agricultural exporters perceive market access as a major hurdle in Taiwan.
The EU and Taiwan
Following the 'one-China' policy, the EU does not have diplomatic or formal political relations with Taiwan. However, the EU supports Taiwan's meaningful participation in multilateral fora, especially where Taiwan's participation is important to the EU and global interests.
The EU and Taiwan have a structured dialogue. In the annual consultations, all trade policy issues are addressed, including WTO obligations and issues of bilateral concern.
- Within this consultation mechanism, four technical working groups also deal with issues relating to intellectual property rights, technical barreirs to trade (including automotive), pharmaceutical and sanitary and phyto-sanitary rules.
The normalisation of Cross-Strait relations and the further liberalisation of economic, trade and investment links between Taiwan and the mainland – in particular with the Economic Cooperation Framework Agreement between the People's Republic of China and Taiwan that was signed in June 2010 – is having a positive impact on Taiwan's economy.
EU in Taiwan
- The European Commission established a European Economic and Trade Office in Taipei in 2003 and so bilateral relations have further intensified.
- Since 1988, the European Chamber of Commerce Taipei represents the interests of EU business in Taiwan, with 28 established sector committees to-date.
Trading with Taiwan
The annual EU-Taiwan Trade and Investment Dialogue (TID) took place on 2 June 2022 in Brussels to discuss economic, trade and investment challenges and trends currently affecting the global economy.