SIMIC

The Taiwanese application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership was sent to New Zealand, according to two people familiar with the situation.

Taiwan already has free-trade deals with two of the members - New Zealand and Singapore - and has been working toward joining the trade agreement for years, with President Tsai Ing-wen making it a key goal for her final term in office.

But China opposes any move to deal openly with Taiwan, which will make the discussions between Beijing, Taipei and the 11 member nations difficult.

In an interview last month, President Tsai said the main obstacles to Taiwan joining would be political, as some of the member nations didn't have diplomatic relations with the island. But Japan and other nations have close ties with Taiwan already.

Taiwan has strengthened ties with democratic allies in the region to counter rising pressure from Beijing. That includes closer ties with CPTPP members such as Australia, which is in the midst of a trade dispute with China, and Japan, which is a key trading partner and the largest Far Eastern economy in the CPTPP.

Taiwanese Minister of Economic Affairs Wang Mei-hua told reporters that China had surprised CPTPP members with its sudden bid, adding that there were concerns whether China could meet the deal's high standards.

Australia also reacted cautiously to China's application, noting that any applicant would need "a track record of compliance with its commitments in the WTO and existing trade agreements," said Australian Trade Minister Dan Tehan.

Australia is currently suing China at the World Trade Organisation over tariffs on barley and wine.

New Zealand is the depositary nation for the deal. It had received Taiwan's application and will share it with the other CPTPP members.

Said Taiwan trade negotiator John Deng: "China always obstructs Taiwan's room to maneuver on the international stage. This is something everyone's aware of. So if China is able to join first, it's clear that Taiwan's application will be at risk."

The original goal of the $13.5 trillion trade agreement was to create a western-led alliance to counterbalance China's economic might in the Pacific region. While it was initially spearheaded by the US, Japan assumed a key role in reviving the plan after former President Donald Trump withdrew in 2017.