The Indo-Pacific’s economic and security architecture is under strain. Strategic competition, supply chain fragility and the contesting of trade norms demand bold moves—greater efforts in strengthening diplomatic and economic ties and supporting the rules-based order.
One such move should be support for Taiwan’s accession into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreement.
The CPTPP is more than just a trade bloc; it is a strategic platform underpinning the rules-based economic order in the Indo-Pacific. Formally established in 2018, it succeeds previous regional economic frameworks in effect since 2005.
The CPTPP’s 11 members—including Australia, New Zealand, Canada, Japan, Vietnam and Singapore—have committed to shared high-standards and enforceable trade norms, enabling increased investment flows and more productive competition between members.
In this context, Taiwan’s inclusion makes both economic and geopolitical sense. A dynamic democracy with an advanced US$790 billion economy and one of the world’s leading high-tech sectors, Taiwan already meets the high standards of the CPTPP. Its accession would inject new momentum into the bloc, further diversify trade, and create a more resilient economic order amid growing global uncertainty.
For existing members, Taiwan’s entry offers clear mutual benefits. Taiwan is already a top-20 trading partner for most members and it plays a central role in global semiconductor supply chains. In 2023, Taiwan’s exports to CPTPP economies exceeded US$160 billion, and the cutting-edge quality of its semiconductors were without match in other competing domestic sectors.
Inclusion would deepen supply chain integration, particularly in technology, renewable energy and health sectors. They are all areas of heightened importance since the Covid-19 pandemic. Taiwan’s strong regulatory environment, commitment to intellectual property protections, and transparent economic institutions align squarely with the CPTPP’s high standards. This isn’t a marginal economy seeking special concessions but a capable, rule-abiding partner ready to contribute. As a partnership seeking to promoting sustainable gold-standard international trade in our region, Taiwan’s absence is a glaring omission.
Taiwan’s accession has been stymied not by economic shortcomings but by geopolitical interference. Beijing’s opposition to Taipei’s participation is well-known and persistent. China, which applied for CPTPP membership shortly after Taiwan in 2021, has sought to block Taipei’s bid by exerting bilateral pressure on CPTPP members. Beijing argues that its one-China principle precludes Taiwan’s participation in international agreements without its endorsement. But the CPTPP is a trade agreement—not a recognition of statehood. Its rules require only that an applicant be in a separate customs territory and able to meet the agreement’s obligations. Taiwan qualifies under this criterion, just as it does in the World Trade Organisation and Asia-Pacific Economic Cooperation.
Giving China a veto sets a dangerous precedent. Instead of reinforcing international shared norms, it would signal the power of coercion and political hostage-taking in shaping the international economy and the actions of middle-powers. Undermining the credibility of the CPTPP and incentivising further efforts to fragment the region.
Conversely, supporting Taiwan’s accession sends a clear signal that CPTPP members are committed to sovereignty, rules, strategic autonomy and fair markets in the face of economic coercion.
Legally, there is no insurmountable barrier to Taiwan’s entry. Article 5 of the CPTPP provides for accession by any economy willing and able to meet the agreement’s obligations. While CPTPP members must reach a consensus to admit a new party, nothing in the agreement prevents Taiwan’s application from advancing, provided the necessary political will exists.
Geopolitically, supporting Taiwan’s inclusion would represent a strategic hedge against economic coercion. Over the past five years, several CPTPP members, most notably Australia, Japan and Canada, have experienced trade disruptions resulting from political disagreements with Beijing. Diversifying trade relationships with like-minded partners is not just good economics; it is prudent risk management. Taiwan’s high-tech economy, commitment to free markets and experience navigating geopolitical risk make it a natural partner.
Further, Taiwan’s participation could catalyse broader engagement with Southeast Asian and Latin American economies that are evaluating future membership in the CPTPP. It would reinforce the principle that commitment to open markets, regulatory quality and international norms—not political alignment—is the pathway to accession. For regional middle powers committed to preserving strategic balance and economic resilience, this is a message worth reinforcing.
Opponents warn that Taiwan’s inclusion would provoke Beijing and lead to diplomatic consequences or economic relation. This overlooks the key point: the international rules-based order hinges on our commitment to its principles, not appeasement. The international system is already beginning to fracture, with policy uncertainty from major economic powers a key contributor. If we allow political interference to isolate likeminded middle powers and undermine our rules-based processes, we will hollow out the very framework we are striving to preserve.
The CPTPP is a test of resolve. And resolve, not rhetoric, will shape the regional order in the years ahead.
Taiwan’s accession to the CPTPP is not simply a trade issue; it’s a litmus test for the Indo-Pacific’s strategic and economic future. Supporting Taiwan’s entry aligns with economic logic, legal precedent and the long-term interests of member states. It’s time for CPTPP governments to move beyond caution, confront the coercive diplomacy seeking to block progress and affirm their commitment to a free, open and rules-based economic order.
This is an original article from The Strategist written by John Coyne
