Nikkei Asia this week published a feature article titled “Tech Power Taiwan’s Global Trade Diplomacy Struggles for Traction,” highlighting the island’s difficulties in expanding its global trade partnerships. The report noted that although Taiwan has actively pursued bilateral trade agreements with Canada, Japan, Australia, New Zealand, and several major Southeast Asian economies, many countries remain cautious under pressure from Beijing, revealing Taipei’s diplomatic constraints within the international trade network.
The article cited commentary from Dah-Wei (David) Yih, Non-Resident Fellow at the Research Institute for Democracy, Society and Emerging Technology (DSET), who observed that Taiwan’s earlier trade negotiations — whether bilateral or multilateral — were often propelled by U.S. backing. As Washington’s drive for regional trade initiatives has slowed, Yih said, Taipei now faces greater resistance in its external negotiations. Yet he added that Taiwan’s recent outbound investment in semiconductors, drones, and advanced components is likely to generate renewed momentum for future talks.
Nikkei Asia reported that Taiwan has already concluded a bilateral trade agreement with Canada, but that the signing has been delayed. Although Prime Minister Mark Carney has pledged to “pivot to Asia,” his administration has yet to finalize the pact, drawing international attention. Multiple sources — including senior Taiwanese officials — told Nikkei Asia that the hesitation underscores China’s growing influence over trade and diplomacy, as well as governments’ efforts to balance economic dependence and political risk.
In the article, Yih analyzed that the return of the Trump administration has shifted the United States toward a bilateral trade strategy, weakening the multilateral frameworks that once supported Taiwan.
“Washington’s current approach favors individual deals over collective leadership, making many countries more reluctant to engage Taiwan directly for fear of provoking Beijing,” he said.
He further explained that China has long used market access as a political lever, employing economic retaliation and trade restrictions to pressure other governments. “When Lithuania allowed Taiwan to change the name of its representative office, Beijing immediately blocked its market access,” Yih noted. “Even U.S. allies such as Australia, Japan, and South Korea remain cautious due to their trade dependence on China.”
Despite current setbacks, Yih remains cautiously optimistic about Taiwan’s outlook. “As Taiwanese semiconductor manufacturers expand in the United States, Europe, and Japan — and as emerging sectors such as drones and high-tech components gain traction in Central and Eastern Europe — demand for trade and investment agreements with Taiwan will naturally increase, potentially opening new opportunities for negotiation,” he said.
DSET also announced the launch of its biweekly publication, the DSET Drone Newsletter, which tracks global UAV policy, civil-military industry developments, and international security trends.
The latest issue, “Taipei Aerospace & Defense Technology Exhibition (TADTE) Spotlights New Drone Partnerships; Thunder Tiger Debuts into Blue UAS & NATO Spurred into Action,” is now available. Stay tuned for regular updates.
