The CPTPP dilemma: To admit China, Taiwan, neither, or both?

Both can potentially strengthen the grouping but members are wary of the baggage they may bring.

- Tan Dawn Wei

When Japan, Singapore and other members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) recently met in Vancouver for their annual meeting, they decided to start the process of letting Costa Rica into the club.

Once again, China and Taiwan, which had both put in formal applications to join the grouping within days of each other in September 2021 and nearly a year ahead of Costa Rica, were left out in the cold.

Taiwan quickly complained, issuing a statement expressing its "deep disappointment" and urged CPTPP members to move its application along "without any political considerations".

China, when asked for an update on its application, said nothing about its exclusion this time, and simply repeated its rhetoric about taking the initiative to align itself with the high standards required of the membership.

There are four other countries that have put up their hands: Ecuador, Uruguay, Ukraine and Indonesia. Both Costa Rica and Taiwan were said to have been the most prepared and had ticked the required boxes.

Had the now 12 – the UK's ascension entered into force on Dec 15 – members let Taiwan in instead of Costa Rica, China would surely have had a lot more to say.

But such is the political conundrum that the countries face. Both China and Taiwan have shown great eagerness to get on board this ambitious multilateral trade pact; China especially after then President Donald Trump in 2017 exited what was then the US-led Trans-Pacific Partnership, designed to shut China out.

Beijing has said Taiwan cannot be a part of this party – or any other official party for that matter.

The member countries – from China-friendly Singapore, Malaysia and Chile to China-wary Japan, Australia and Canada – are not all in agreement about who to let in, a necessary undertaking for membership. Other members include Peru, Brunei, Vietnam, New Zealand and Mexico.