Taiwan's Call for EU Economic Partnership

TAIPEI (Reuters) – Taiwan President Lai Ching-te called on Monday for the signing of an economic partnership agreement with the European Union, asserting it would enhance cooperation in semiconductors and that both democracies should collaborate.

Taiwan has sought investment and trade deals with the EU, which would hold significant political weight given its diplomatic isolation and exclusion from many global entities and agreements.

The EU has shown interest in Taiwan as a "like-minded" partner under the European Chips Act, aimed at boosting semiconductor production in Europe and reducing reliance on Asia, despite lacking formal ties with the Chinese-claimed territory.

Addressing a Taiwan-EU investment forum in Taipei, Lai emphasized the need for Taiwan and the EU to form a "strong democratic umbrella" amid rising authoritarianism and to establish secure supply chains for global democracies.

Lai indicated that an economic partnership agreement with the EU could lay a solid foundation for future collaboration in areas such as semiconductors and AI.

He stated, "This would not only enhance the resilience and security of our economies but also ensure the stability of global supply chains."

Taiwanese investment in the EU has been significantly contributed to by Taiwan Semiconductor Manufacturing Co (TSMC), which inaugurated a major new chip plant in Dresden, Germany, in August, expected to serve as a crucial supplier for European industries and automakers.

Maria Martin-Prat, deputy head of the European Commission's trade directorate, did not mention a potential agreement during her video address to the investment forum but acknowledged the strength of bilateral relations. "Taiwan, a vibrant democracy with an open economy, is a trusted partner for us to promote our economic security," she stated.

Taiwan possesses few free trade agreements, having signed an Enhanced Trade Partnership with Britain last year and applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

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