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Canada Sets Taiwan Relations Framework

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

Summary#

This bill sets a legal and policy framework to strengthen relations between Canada and Taiwan. It covers economic, cultural, legal, and security matters. It clarifies how Canadian laws apply to Taiwan, allows agreements despite no formal diplomatic ties, and supports Taiwan’s role in international bodies and trade. It also requires government reporting and parliamentary review.

  • Treats references to “foreign states” in Canadian laws as including Taiwan (References to foreign states).
  • Confirms Taiwan and its citizens can own property and use Canadian courts, despite lack of formal recognition (Property ownership protected; Capacity to sue and be sued).
  • States Canada will promote security cooperation and support Taiwan’s participation in dialogues and exercises (Policy — Declaration of policy (1)(c)).
  • Supports Taiwan’s participation in CPTPP and other trade agreements, and in WHO, ICAO, and Interpol (Policy — Declaration of policy (1)(d); International cooperation (2)(a)).
  • Allows renaming of official offices and exempts Taiwan’s president and senior officials from visas for non-official visits (International cooperation (2)(b)-(d)).
  • Requires a ministerial policy report within 60 sitting days and committee reviews within 1 year (Parliamentary Oversight).

What it means for you#

  • Households and travelers

    • No change to regular travel. The visa exemption applies only to Taiwan’s president and senior officials when the main purpose of travel is not official (International cooperation (2)(b)).
    • More visible government engagement with Taiwan may increase cultural and educational exchanges over time. Specific programs would depend on future agreements (International cooperation (2)(c); Intergovernmental agreements).
  • Businesses, exporters, and investors

    • Policy support for Taiwan’s participation in CPTPP could, if realized, expand market access. The bill does not grant accession; it states support only (Policy — Declaration of policy (1)(d)).
    • Clear rules that Taiwan counts as a “foreign state” for general references in Canadian law reduce legal ambiguity in contracts and regulatory compliance (References to foreign states).
    • Property and intellectual property rights of Taiwanese persons and entities are affirmed under Canadian law, which can facilitate cross-border deals and litigation certainty (Property ownership protected).
    • The Taiwan and Canadian representative offices may use clearer names, which may simplify dealings with officials and trade offices (International cooperation (2)(d)).
  • Students, researchers, and NGOs

    • The government is to facilitate official communication in health, science, digital governance, Indigenous matters, human rights, democracy promotion, and counter-disinformation. This could enable more MOUs and joint projects, subject to later agreements (International cooperation (2)(c); Intergovernmental agreements).
    • Support for Taiwan’s participation in WHO and ICAO could improve data sharing and coordination relevant to global health and aviation safety (International cooperation (2)(a)).
  • Legal community and courts

    • Taiwan can sue and be sued in Canadian courts, consistent with Canadian laws on state status and immunities, even without formal recognition (Capacity to sue and be sued; Capacity not affected).
    • Courts and agencies must treat general references to foreign states in federal laws as including Taiwan, which may affect interpretation and procedure (References to foreign states).
  • Federal government and Parliament

    • The Minister of Foreign Affairs must table a Taiwan policy report within 60 sitting days after the Act comes into force (Report to be tabled by Minister).
    • Parliamentary foreign affairs committees must review implementation within 1 year and assess the relationship and security cooperation on an ongoing basis (Committee review).
    • The Governor in Council may limit rights or capacities granted by the Act if Taiwan does not provide reciprocal treatment to Canada or Canadians (Condition of reciprocity).

Expenses#

  • Estimated net cost: Data unavailable.

  • Key points:

    • The bill contains no explicit appropriations, taxes, or fees (Entire bill).
    • It creates reporting and review duties that federal departments and parliamentary committees would fulfill using existing resources; no fiscal estimate is provided (Report to be tabled by Minister; Committee review).
    • Any costs from increased cooperation, exercises, or international engagement would depend on future decisions; no figures are provided in the bill. Data unavailable.

Proponents' View#

  • It provides a clear legal basis to work with Taiwan without changing Canada’s One China Policy, by defining how Canadian laws apply and enabling agreements despite no diplomatic recognition (References to foreign states; Intergovernmental agreements).
  • It strengthens Indo-Pacific security by promoting meaningful security and defence cooperation and by signalling concern over any non-peaceful change to Taiwan’s status (Policy — Declaration of policy (1)(c), (f)).
  • It advances economic interests by supporting Taiwan’s participation in CPTPP and other trade agreements, potentially opening markets for Canadian goods and services (Policy — Declaration of policy (1)(d)).
  • It improves global cooperation by backing Taiwan’s role in WHO, ICAO, and Interpol, which can aid health, aviation safety, and policing coordination (International cooperation (2)(a)).
  • It makes high-level engagement easier through targeted visa exemptions and clearer names for representative offices, which can facilitate official and trade interactions (International cooperation (2)(b)-(d)).
  • It adds transparency and oversight through a required ministerial report and recurring parliamentary reviews (Report to be tabled by Minister; Committee review).

Opponents' View#

  • It may increase diplomatic friction with the People’s Republic of China, given provisions on security cooperation, language on self-determination, and office renaming; potential trade or consular impacts are not quantified in the bill (Policy — Declaration of policy (1)(c), (e); International cooperation (2)(d)). Data unavailable.
  • Expanding Taiwan’s capacity to sue or be sued with reference to state immunities could create legal complexity and litigation over immunity status and procedure (Capacity to sue and be sued).
  • Policy support for Taiwan’s CPTPP participation could complicate trade diplomacy with other partners; the bill does not address accession criteria or timelines (Policy — Declaration of policy (1)(d)).
  • The visa exemption for Taiwan’s top officials departs from standard practice and may raise consistency issues with the Immigration and Refugee Protection Act framework for other jurisdictions (International cooperation (2)(b)).
  • The reciprocity clause introduces uncertainty; rights or capacities granted by the Act could be narrowed by regulation if Taiwan’s treatment of Canadians is deemed insufficient, which may deter planning by businesses and institutions (Condition of reciprocity).

Timeline

Sep 26, 2023 • Senate

First reading

May 21, 2024 • Senate

Second reading

Foreign Affairs
National Security
Trade and Commerce
Immigration