Mr. Champagne`s comment put on hold the idea of a free trade agreement with the world`s second-largest economy, for which Prime Minister Justin Trudeau was under pressure from domestic policy critics who accused him of being too willing to make concessions in exchange for greater trade with China. Learn more about Canada`s trade and investment agreements: types of contracts and the gradual development of trade and investment agreements. The idea of a trade agreement between the United States and Taiwan has been under discussion for at least two decades, with the greatest attention paid to China`s accession to the World Trade Organization (WTO) in December 2001 (and Taiwan`s accession in January 2002). The mainstream think tanks discussed the idea vigorously (Lardy and Rosen and Bush) and the Senate rallied for an official assessment from the U.S. International Trade Commission (USITC). The USITC concluded rather dryly that “the U.S. economy would likely have very little impact in removing trade barriers under a free trade agreement between the United States and Taiwan,” given the different size of the two economies. The North American Free Trade Agreement between Canada, the United States and Mexico came into force on January 1, 1994 and created the world`s largest post-GDP free trade region.
Until 2014, NAFTA`s GDP was estimated at more than $20 trillion, with a market of 474 million people.   Based on this success, Canada continues to negotiate free trade agreements with more than 40 countries and has free trade agreements, most recently with South Korea, Canada`s first free trade agreement with an Asia-Pacific partner. Since 2018, Canada has also concluded two other important multilateral trade agreements: the Comprehensive Economic and Trade Agreement (CETA) with the European Union and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) agreement with 10 other Pacific countries.  On September 21, 2017, CETA was provisionally implemented, immediately removing 98% of the EU`s customs positions on Canadian products.  Canada is currently the only G7 country to have free trade agreements with all other G7 countries. Free trade with the last G7 country, Japan, began with the entry into force of the CPTPP on 30 December 2018. Many of the key economic considerations for a comprehensive trade agreement with Taiwan are firmly in place. Taiwan is the 14th largest export market for U.S.
products and the eighth largest market for agricultural products. It has a strong rule of law and admirable public transparency and, more often than not, reasonable rules on trade and investment. Taiwan`s average trade-weighted tariff is 2% – much like in the United States – but has relatively high tariffs (9%) agriculture, which means that an agreement could encourage a sharp increase in the United States.