Months into Prime Minister Mark Carney’s push to diversify Canada’s trade beyond the United States, an already-negotiated framework with Taiwan remains unsigned – prompting opposition members to question about whether renewed relationship with Beijing is contributing to the delay. 

The Taiwan-Canada Trade Cooperation Framework Arrangement (TCFA) is not a traditional free-trade deal and would not cut tariffs. Instead, it would give the two sides a formal structure to deepen cooperation in areas such as supply chains, technology and investment — sectors where Taiwan’s semiconductor-heavy economy and Canada’s push to diversify trade could overlap. 

Substantive negotiations wrapped up in 2025, and the agreement has been ready for final signatures since April. 

But months later, the framework remains unsigned as Carney looks elsewhere for economic opportunities, while simultaneously rebuilding relations with Beijing.

BACKGROUND: Taiwan envoy says ‘ball is in your court’ as Taiwan-Canada trade framework stalls 

Taiwan, meanwhile, is making the case that its value to Canada goes beyond the size of its domestic market. 

“The strength of Taiwan is in its supply chain,” Harry Tseng, Taiwan envoy in Canada told iPolitics in an interview. 

In 2025, the island state ranked as Canada’s 15th largest trading partner globally and sixth largest in Asia, with a two-way merchandise trade totalling $6 billion, according to Global Affairs Canada.

“All the work is done,” Tseng said when asked about the status of the framework.

The continued delay has also drawn criticism from opposition parties.

“As we seek to diversify our markets, it is incomprehensible that this agreement has still not been signed,” Bloc Quebecois international trade critic Mario Simard said in a statement to iPolitics. 

The framework grew out of Trudeau-era efforts to strengthen supply chain resilience with Taiwan, as an extension to the Foreign Investment Promotion and Protection Arrangement– a bilateral agreement that focuses on safeguarding cross-border investments between two economies. TCFA, as a building block, serves as a way to build resilience on supply chains in  sectors like semiconductors and clean energy. 

Taiwan, a de facto autonomous state, is regarded by the Chinese Communist Party as a rogue province. Under Canada’s longstanding One China policy, Ottawa regards Beijing as China’s sole representative but still collaborates with Taiwan. 

Tseng also cautioned against viewing warmer relations with Beijing as evidence of a fundamental shift in China’s approach to Canada, arguing that trade and geopolitics have become increasingly intertwined.

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“Everything is connected now, the trade talk and the geopolitical situation and Canada-China relationships—all of them are in the same logic,” he said.

He warned against being “too credulous” of what he described as Beijing’s “charm diplomacy,” arguing that periods of warmer engagement should not necessarily be interpreted as a lasting strategic shift.

“China doesn’t see Canada as a friend, and at best, China sees Canada only as a secondary enemy,” he said, describing the U.S. as Beijing’s “primary enemy” as trade tensions between Washington and Beijing escalates.

Margaret McCuaig-Johnston, director of the China Strategic Risks Institute and a senior fellow of the Graduate School of Public and International Affairs at the University of Ottawa, said Canada and Taiwan can continue expanding trade even without the framework, but signing it would provide greater clarity and certainty for businesses looking to deepen economic ties. 

“It’s in our national interest to diversify our trade and to diversify with Taiwan,” McCuaig-Johnston said in an interview with iPolitics.  

In her view, the obstacle is political. She called the continued delay “concerning,” and says it suggests Ottawa is giving “more attention” to Beijing and their wishes as it works to rebuild the bilateral relationship. 

Beijing, she said, would view Ottawa signing an economic framework with Taiwan as a challenge to its claim over the island, giving the arrangement political significance beyond its trade provisions. 

McCuaig-Johnston said signing the framework could also send a broader signal about how Ottawa intends to manage its renewed relationship with China.

“Many Canadians are very concerned about our closer relationship with China,” she said. “Prime Minister Carney could go a long way towards alleviating those concerns by signing the agreement with Taiwan.”

“It would demonstrate that our foreign policy is not being made in Beijing,” she added.

Global Affairs Canada did not provide a timeline for signing the framework when asked by iPolitics. 

“The implementation timeframe for the Trade Cooperation Framework Arrangement remains under determination and will continue to be informed through ongoing engagement and dialogue with relevant partners and stakeholders,” a department spokesperson said in a statement. 

The department said Canada remains committed to deepening its “practical engagement” with Taiwan in areas that support economic prosperity, while continuing to act in accordance with its longstanding One China policy. 

NDP foreign affairs critic Heather McPherson said she supports the government’s push to diversify, arguing Canada should have reduced its reliance on the U.S. much sooner. But she said Ottawa’s approach to the new trading relationship should not be driven by economics alone. 

McPherson said Canada should consider human rights, workers’ rights and environmental protection as it builds new trade relationships, saying Taiwan should have a place in that strategy. 

“We should be open to working with all vibrant democracies, all strong economies,” McPherson said in an interview with iPolitics. 

“Taiwan has a lot to offer Canada, and I think we should develop that relationship.” 

Asked what she believes is holding up the Taiwan framework, McPherson stopped short of attributing the delay directly to Beijing. 

“I would hate to assume what the prime minister is doing and why he’s doing those things,” she said, before adding that Canada’s relationship and trade ties with China “plays a role certainly. 

iPolitics also reached out to Conservative MP Stephanie Kusie, international trade critic, but did not receive a comment in time of publication.