Taiwan, officially known as the Republic of China (ROC), is an island country located in East Asia. With a population of over 23 million people, Taiwan is a thriving economy with advanced technology, high literacy rates and a booming tourism industry. Although it is often overshadowed by China’s economic and political power in the region, Taiwan has made significant inroads in Latin America, particularly in the areas of trade, investment, cultural and educational exchange.
Taiwan’s official diplomatic relations with Latin American countries began in the early 1960s, during a period of global tension between Taiwan and China. Many Latin American countries, including Mexico, Brazil, Paraguay, and Panama, officially recognized Taiwan as an independent country and established formal diplomatic relations with the ROC government in Taipei. Over the years, various Latin American countries have remained friendly to Taiwan, even as China increased its economic and political influence in the region.
One of the key areas of cooperation between Taiwan and Latin America has been trade. Taiwan is actively seeking to diversify its trade partners and reduce its dependence on China and the United States. Latin America, with its abundant natural resources and growing middle class, presents a lucrative market for Taiwan’s exports. Taiwan has established free trade agreements (FTAs) with several Latin American countries including Guatemala, El Salvador, Honduras, and Nicaragua. Taiwan is also negotiating trade agreements with other countries in the region, including Peru, Chile, and Colombia.
In addition to trade, Taiwan has also invested heavily in Latin America. Taiwanese companies have invested in a variety of industries including manufacturing, banking, and energy. From 2002 to 2019, Taiwanese companies invested over $10 billion in Latin America. Many of these investments are focused on infrastructure, such as ports and highways, which are vital for connecting Latin American countries with the Asia-Pacific region.
Taiwan has also established cultural and educational ties with many Latin American countries. Taiwan offers scholarships to Latin American students to study in Taiwan, and many Latin American universities have established exchange programs with Taiwanese universities. In addition, Taiwan has established Chinese language and cultural centers throughout Latin America to promote cultural and educational exchange.
Despite Taiwan’s efforts to build relationships with Latin American countries, its position in the region is not without challenges. China has been actively courting Latin America for many years, offering loans and investment in exchange for diplomatic recognition of China’s “One China” policy. China has successfully wooed several Latin American countries away from Taiwan, including Panama, the Dominican Republic, and most recently, El Salvador.
Another challenge for Taiwan is the perception of it being a small, insular country. Taiwan has often been overlooked by larger countries, including the United States and China, which can make it difficult to attract investment and build trade relationships. However, Taiwan has been actively seeking to overcome this perception by participating in multilateral organizations such as the World Trade Organization (WTO) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Despite these challenges, Taiwan’s position in Latin America remains strong. Many Latin American countries continue to value their relationship with Taiwan and recognize its important role in the Asia-Pacific region. Taiwan’s emphasis on trade diversification and investment in Latin America has helped to strengthen its relationships with many countries in the region. As Taiwan continues to build cultural and educational ties with Latin American countries, it is well-positioned to make long-lasting relationships that will benefit both itself and the region as a whole.
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