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Canada Backs Closer Ties With Taiwan

Full Title: An Act respecting a framework to strengthen Canada-Taiwan relations

Summary#

This bill sets a legal and policy framework to strengthen Canada–Taiwan relations. It directs the Government of Canada to support closer ties in security, trade, culture, and law, while keeping parliamentary oversight. It also clarifies how Canadian laws treat Taiwan for property and court matters.

  • Supports security and defence cooperation with Taiwan and its role in regional dialogues and exercises (Declaration of policy (1)(c)).
  • Backs Taiwan’s participation in trade deals, including the CPTPP, and in bodies like WHO, ICAO, and Interpol (Declaration of policy (1)(d); International cooperation (2)(a)).
  • Treats Taiwan as included in general references to “foreign states” in federal law; confirms Taiwan’s ability to sue and be sued in Canadian courts (References to foreign states; Capacity to sue and be sued (1)).
  • Protects property rights of Taiwanese individuals and entities in Canada, past and future (Property ownership protected).
  • Allows renaming of representative offices to “Taiwan Representative Office” and “Canadian Representative Office in Taiwan” (International cooperation (2)(d)).
  • Requires a ministerial policy report within 60 sitting days and committee review within one year (Report to be tabled by Minister; Committee review).

What it means for you#

  • Households and travelers

    • The president or senior officials of Taiwan would be exempt from visa requirements for non-official visits. This does not change visa rules for the general public (International cooperation (2)(b)). Timing: on coming into force.
    • Government communications would use language on Taiwan that reflects the right to self-determination (Declaration of policy (1)(e)). Timing: on coming into force.
  • Taiwanese Canadians and Taiwanese nationals in Canada

    • Property you own in Canada remains protected under Canadian law, regardless of Canada’s recognition of the PRC in 1970. This applies to property owned before or after that date (Property ownership protected). Timing: confirmed on coming into force.
    • Taiwan and its entities can sue or be sued in Canadian courts, with access to the usual state-related immunities and limits (Capacity to sue and be sued (1)). Timing: on coming into force.
  • Businesses and investors

    • Greater legal clarity when dealing with Taiwanese public bodies, since Taiwan is deemed included in references to “foreign states” in federal laws (References to foreign states). Timing: on coming into force.
    • Canada’s stated support for Taiwan in the CPTPP and other trade forums signals intent, but does not guarantee outcomes (Declaration of policy (1)(d); International cooperation (2)(a)). Timing: policy direction immediately; results depend on external decisions.
    • Canada and Taiwan may enter into agreements even without formal diplomatic ties, and federal rules on international agreements apply (Intergovernmental agreements). Timing: on coming into force.
    • If Taiwan does not offer similar rights to Canadian persons or entities, the Governor in Council may restrict Taiwan’s rights in Canada by regulation (Condition of reciprocity). Timing: as and if regulations are made.
  • Universities, NGOs, and professionals

    • Federal policy encourages more official engagement with Taiwan on health, science, Indigenous matters, digital governance, human rights, democracy promotion, and countering disinformation (International cooperation (2)(c)). Timing: on coming into force.
  • Public servants and elected officials

    • The Minister of Foreign Affairs must table a Taiwan policy report within 60 sitting days, aligned with the Indo-Pacific strategy (Report to be tabled by Minister).
    • Parliamentary committees must review implementation within one year and as needed after (Committee review).
    • Government communications may use the updated office names in Canada and Taipei (International cooperation (2)(d)).

Expenses#

  • Estimated net cost: Data unavailable.

  • Fiscal information

    • No fiscal note identified. The bill contains no explicit appropriations. Data unavailable.
    • Administrative tasks include a ministerial report within 60 sitting days and committee reviews within one year (Report to be tabled by Minister; Committee review). Cost: Data unavailable.
    • Possible minor costs to update signage/branding for representative offices and to adjust administrative processes for the visa exemption for certain Taiwanese officials (International cooperation (2)(b), (2)(d)). Cost: Data unavailable.

Proponents' View#

  • Strengthens economic ties by backing Taiwan’s participation in the CPTPP and other trade forums, which could expand market access for Canadian exporters (Declaration of policy (1)(d); International cooperation (2)(a)). Assumption: participation depends on multilateral consent.
  • Improves regional security cooperation and dialogue with a key Indo-Pacific partner, aligning with Canada’s political, security, and economic interests (Declaration of policy (1)(b), (1)(c)).
  • Clarifies legal status by deeming Taiwan included in references to foreign states and confirming its capacity to sue or be sued, which reduces uncertainty for courts and contractors (References to foreign states; Capacity to sue and be sued (1)).
  • Protects property rights of Taiwanese persons and entities in Canada, which supports investment confidence (Property ownership protected).
  • Enhances transparency and accountability through required ministerial reporting and committee review (Report to be tabled by Minister; Committee review).
  • Normalizes practical diplomacy by renaming representative offices and facilitating official contacts across key policy areas (International cooperation (2)(c), (2)(d)).

Opponents' View#

  • Risks diplomatic tension with the People’s Republic of China by adopting language on self-determination and expanding security cooperation with Taiwan, which differs from the PRC’s “One China Principle” (Preamble; Declaration of policy (1)(c), (1)(e)). Assumption: extent of any retaliation is unknown.
  • Creates implementation and coordination costs for departments (foreign affairs, immigration, public safety) without dedicated funding in the bill (International cooperation (2)(b), (2)(c); Report to be tabled by Minister). Cost: Data unavailable.
  • The visa exemption for Taiwan’s president and senior officials on non-official visits may require changes to immigration procedures and could raise consistency questions with the Immigration and Refugee Protection Act (International cooperation (2)(b)). Implementation risk: Data unavailable.
  • Expanding references to include Taiwan as a “foreign state,” and confirming capacity to sue or be sued, may generate litigation over state immunities and jurisdiction until courts provide clarity (References to foreign states; Capacity to sue and be sued (1)). Impact: Data unavailable.
  • The reciprocity clause allows the government to restrict Taiwan’s rights if Canada or Canadians are not treated similarly, which could introduce uncertainty for businesses and institutions planning long-term partnerships (Condition of reciprocity).

Timeline

Jun 15, 2023 • House

First reading

Foreign Affairs
National Security
Trade and Commerce
Immigration