Policy paper

Investment pillar of the UK-Taiwan ETP

Published 30 June 2025

AN ARRANGEMENT BETWEEN

THE TAIPEI REPRESENTATIVE OFFICE IN THE UNITED KINGDOM

AND

THE BRITISH OFFICE TAIPEI

ON ESTABLISHING THE INVESTMENT PILLAR

OF AN ENHANCED TRADE PARTNERSHIP

BETWEEN TAIWAN AND THE UNITED KINGDOM

THE TAIPEI REPRESENTATIVE OFFICE IN THE UNITED KINGDOM AND THE BRITISH OFFICE TAIPEI (collectively, the ‘Participants’ and each a ‘Participant’); 

REAFFIRMING their shared ambition to further strengthen bilateral trade relations building upon and REAFFIRMING their commitments under the Arrangement for an Enhanced Trade Partnership (‘ETP’) signed on 8 November 2023.

HAVE REACHED the following understanding:

1. Existing rights and obligations

The Participants reaffirm their rights and obligations under the World Trade Organization (‘WTO’) agreements.

Part 1: investment principles

2. Investment framework

(a) The Participants are united in their support for open investment markets that are competitive, transparent, fair, non-discriminatory, and accessible to international investment.

(b) The Participants will strive to maintain a stable domestic environment to ensure the protection and security of investments by foreign investors and recognise that greater economic cooperation to achieve this is of mutual benefit.

(c) The Participants accept that affirming and recognising their shared investment framework principles under 3(b) does not prevent the adoption or modification of applicable measures and regulations in order to achieve or protect legitimate public policy objectives, such as to safeguard public welfare, public health, safety and the environment.

3. Investment and the environment

(a) The Participants consider that investments should be established and operated in a manner sensitive to the environment, recognising the importance of this in combatting climate change and supporting environmentally friendly economic growth. Accordingly, each Participant will strive to promote investments and investment practices that contribute to environmental protection.

(b) The Participants recognise that it is inappropriate to encourage investment by weakening or reducing the standards of environmental protection enshrined in the domestic laws and regulations applicable within their respective territory.

4. Investment and labour

(a) The Participants recognise the importance of encouraging mutually supportive trade and labour policies and practices, including the promotion of adherence to internationally recognised labour rights and decent work.

(b) The Participants recognise that it is inappropriate to encourage investment by weakening or reducing the standards of labour protection enshrined in the domestic laws and regulations applicable within their respective territory.

5. Responsible business conduct

(a) The Participants recognise the importance of compliance by investors and their investments with the domestic laws and regulations applicable in the territory of each Participant, including measures and regulations on human rights, gender equality, environmental protection, anti-corruption and labour.

(b) Each Participant reaffirms the importance of encouraging investors and enterprises operating within its territory or subject to its jurisdiction to voluntarily incorporate into their internal policies those internationally recognised standards, guidelines and principles of corporate social responsibility that have been endorsed or are supported by that Participant, such as the Organisation for Economic Co-operation and Development (‘OECD’) Guidelines for Multinational Enterprises and the United Nations Guiding Principles on Business and Human Rights.

6. Investment and anti-corruption

(a) The Participants affirm the importance of promoting accountability, transparency, and integrity within both the public and private sectors.

(b) The Participants affirm their resolve to eliminate bribery and corruption, and laundering of the proceeds of corruption, in international investment in accordance with internationally recognised standards such as those within the United Nations Convention Against Corruption adopted at New York on 31 October 2003.

(c) The Participants recognise the importance under the WTO Agreement on Government Procurement, done at Marrakesh, April 15, 1994, as amended, March 30, 2012 (the ‘GPA’), of conducting covered procurement (as defined in Article II of the GPA) in a transparent and impartial manner.

7. Investment and development

(a) The Participants affirm their commitment to sustainable development, recognising the contribution of international trade and investment to the advancement of global sustainable development, including by means of increased economic growth, equality and prosperity.

(b) The Participants affirm the importance of promoting investments that support the achievement of internationally recognised objectives such as the United Nations 2030 Sustainable Development Goals.

8. Investment and gender

(a) The Participants acknowledge the key role that gender-responsive policies can play in achieving inclusive economic growth and sustainable development. Gender-responsive polices aim to ensure that the benefits of economic growth are more broadly shared by:

(i) Recognising the systemic barriers that affect women in investment and in accessing finance.

(ii) Providing equal access to opportunities for the participation of women in business, industry, and the labour market.

(iii) In undertaking these gender-responsive policies, the Participants will consider their impact on women in all their diversity and, in the case of Taiwan, consider their impact on Indigenous women.

(b) The Participants affirm the importance of promoting gender equality policies and practices and building the capacity of the Participants in this area, including in non-government sectors, to eliminate all forms of gender-based discrimination in trade and investment.

(c) The Participants acknowledge the benefit of sharing their respective experiences in designing, implementing, monitoring, evaluating, and strengthening policies and programmes to address the systemic barriers which exist for women in international trade, and prevent them from participating equitably in global, regional, or domestic economies.

(d) The Participants affirm the importance of encouraging enterprises to consider greater diversity, including gender diversity, in senior management positions or on board of directors.

9. Micro, small and medium sized enterprises

(a) The Participants recognise the importance of Micro, Small, and Medium Sized Enterprises (‘MSMEs’) in their bilateral investment relations.

(b) The Participants affirm the importance of promoting an environment that facilitates and supports the development, growth, and competitiveness of MSMEs and promotes job creation in MSMEs.

(c) The Participants recognise the importance of current initiatives, efforts, and work on MSMEs developed in relevant international fora, and taking into account their findings and recommendations, where appropriate.

(d) The Participants recognise the importance of the participation of MSMEs owned or led by under-represented groups, such as women, youth, persons with a disability, and minority groups in international trade.

(e) The Participants also recognise the importance of:

(i) Working cooperatively to identify and address barriers to MSMEs’ access to international markets

(ii) Considering the needs of MSMEs when formulating new legislation, regulations, and product standards

(iii) Assessing the effects of globalisation on MSMEs and, in particular, examining issues related to MSMEs’ access to financing and to support for innovation.

Part 2: investment facilitation and promotion

10. Investment facilitation

(a) The Participants recognise the importance of measures to secure and improve transparency in relation to investments. Examples of such measures include:

(i) Promptly publishing or otherwise make publicly available measures relating to investment activities and allowing reasonable time between publication and the measure coming into effect.

(ii) Making available via electronic means, information that may be of importance to investors, such as measures and regulations, or market and sectoral information.

(iii) Making available information on the practical steps relevant to invest in its territory such as details of requirements and procedures relating to:

i. Company establishment and business registration

ii. Connecting to essential infrastructure

iii. Acquisition and registering of property

iv. Construction permits

v. Capital transfers and payments

vi. The payment of taxes

vii. Public incentives available to investors

viii. Resolving insolvency

(b) The Participants recognise that imposing fees on investors for accessing necessary information relating to investment activities of the type outlined above may curtail efforts to improve transparency.

(c) The Participants recognise the importance of streamlining and speeding up administrative procedures. The Participants reaffirm the importance of acting in a reasonable, objective, and impartial manner in administering investments.

(d) The Participants recognise the importance of pursuing and encouraging efficient administrative procedures. For example:

(i) Allowing reasonable time periods for the submission of applications by prospective investors.

(ii) Adopting a proportionate and reasonable approach to the submission of documents such as acceptance of authenticated copies rather than original documents.

(iii) Endeavouring to achieve the processing of applications and completion of procedures within a reasonable time and providing information and updates on the status of applications and procedures.

(iv) Endeavouring to provide explanations and information about the application of specified administrative procedures (for example explaining why an approval or permission has not been granted) and acting in a reasonable and impartial manner.

(e) The Participants will seek to establish or maintain one or more focal points or appropriate mechanisms to:

(i) Respond to enquiries from investors or persons seeking to invest regarding the measures covered by this Arrangement on Investment.

(ii) Assist investors or persons seeking to invest in obtaining relevant information on measures covered by this Arrangement on Investment from competent authorities.

(f) The Participants will endeavour to respond to enquiries within a reasonable time-period set by each Participant, which may vary depending on the nature or complexity of the request.

11. Investment promotion

(a) The Participants will identify priority sectors for the promotion of investment.

(b) The Participants may seek to facilitate the reciprocal exchange and dissemination of information to support the principles outlined in this Arrangement on Investment. This information may include:

(i) Investment opportunities

(ii) Technical assistance

(iii) Financial support

(iv) Fiscal incentives

(v) Investment insurance

(c) The Participants will seek opportunities to facilitate business missions with their respective investors, with particular focus on identifying viable opportunities for investment in accordance with the principles outlined in this Arrangement on Investment.

(d) The Participants will seek to cooperate in virtual or in-person events in support of increasing bilateral investment flows, for example via delivering joint events. These may include trade fairs, symposia, seminars, workshops, exhibitions, and trainings.

(e) The Participants will seek to facilitate relevant business introductions. This may include for example supporting partnerships through joint ventures or capital financing.

Part 3: competition

12. Competition law and authorities

(a) The Participants recognise that maintaining domestic competition law which prohibits anti-competitive agreements, prohibits the abuse of dominant market positions, and effectively addresses mergers with substantial anti-competitive effects, will help to reduce barriers to trade and promote a competitive environment that attracts investment.

(b) The Participants recognise the importance of applying and enforcing their domestic competition law in a manner that does not discriminate based on nationality or ownership.

(c) Where the Participants provide exemptions from the application of their domestic competition law, those exemptions will be transparent and based on public policy grounds.

(d) The Participants will maintain operationally independent competition authorities responsible for the enforcement of their domestic competition law.

13. Procedural fairness

(a) The Participants recognise the importance of applying their domestic competition law in a manner consistent with the principles of procedural fairness. This includes:

(i) Providing transparency, by making available in writing the domestic competition laws, regulations and procedural rules pursuant to which competition law investigations are conducted.

(ii) Providing a Person^{[footnote 1]} under investigation pursuant to domestic competition law with a reasonable opportunity to be legally represented.

(iii) Before a sanction or remedy is imposed against a Person pursuant to domestic competition law (or within a reasonable time after an interim sanction or remedy is so imposed).

i. Providing the Person concerned with information regarding the competition authority’s concerns.

ii. Affording the Person concerned a reasonable opportunity to be heard and to present evidence before the body responsible for the sanction or remedy.

(iv) Ensuring that confidential or privileged information obtained by competition authorities is not disclosed, subject to applicable legal exceptions.

(v) Providing a Person against whom a sanction or remedy is imposed under domestic competition law with the opportunity to seek review of the sanction or remedy by a court or other independent tribunal, subject to the applicable rules of that court or tribunal.

14. Private rights of action

Each Participant will maintain domestic laws or other measures that enable a Person to seek redress for injury to that Person’s business or property caused by a violation of its competition law, either independently or following a finding of violation by its competition authority. A Participant may establish reasonable criteria for the exercise of such private actions.

15. Consultation

In order to foster understanding between the Participants, or to address a specific matter arising under this section, a Participant will enter into consultations upon request by the other Participant. The requesting Participant will indicate, if relevant, how the matter affects or may affect trade or investment between the Participants.

Part 4: subsidies

16. Definitions and scope

(a) For the purposes of this section, ‘SCM Agreement’ means the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement.

(b) For the purposes of this section, ‘subsidy’ means a measure which fulfils mutatis mutandis the conditions set out in Article 1.1 of the SCM Agreement, irrespective of whether the recipients of the subsidy deal in goods or services,^{[footnote 2]} and which is specific within the meaning of Article 2 of that Agreement.

(c) This section does not apply to:

(i) Subsidies related to agricultural products, fisheries and fisheries related products.

(ii) Subsidies granted to carry out a public service.

(iii) Subsidies granted in response to an economic emergency.

(iv) Subsidies granted in response to natural disasters and other exceptional circumstances.

(v) Subsidies granted to carry out a service for the purpose of cultural development and, in the case of Taiwan, to advance the interests of indigenous people.

17. Subsidies principles

(a) The Participants recognise that a Participant may grant subsidies when they are necessary to achieve a public policy objective.

(b) The Participants acknowledge that certain subsidies have the potential to distort the proper functioning of markets and undermine the benefits of liberalisation of trade and investment.

(c) In principle, subsidies should not be granted by a Participant when it finds that they have or could have a significant negative effect on trade or investment between the Participants.

18. Transparency

(a) The Participants affirm their rights and obligations under Article 25 of the SCM Agreement.

(b) Upon request by one Participant, the other Participant will provide information on particular subsidies.

19. Consultation

If a Participant considers that a subsidy granted by the other Participant has or could have a significant negative effect on the first Participant’s trade or investment interests, the first Participant may request consultations on the matter. The Participants will consult with each other in good faith with a view to resolving the matter. The requesting Participant will indicate, if relevant, how the matter affects trade or investment between the Participants. 

Part 5: public enterprises

20. Definitions and scope

(a) For the purposes of this section, ‘public enterprise’ means an enterprise that is principally engaged in commercial activities^{[footnote 3]} in which a Participant:

(i) Directly owns more than 50 per cent of the share capital.

(ii) Controls, through ownership interests, the exercise of more than 50 per cent of the voting rights; or

(iii) Holds the power to appoint a majority of members of the board of directors or any other equivalent management body.

(b) This section will not apply to public procurement.

21. Commercial considerations and non-discriminatory treatment

The Participants recognise the importance of their public enterprises, when engaging in commercial activities, acting in accordance with commercial considerations^{[footnote 4]} and the principle of non-discriminatory treatment, in their purchase or sale of a good or service, except to fulfil any public service obligations. This will not preclude differential treatment, or refusal, when purchasing or selling a good or service, so long as this is undertaken in accordance with commercial considerations.

22. Legal and regulatory framework

(a) The Participants will respect and make best use of relevant international standards and best practice, including the OECD Guidelines on Corporate Governance of State-Owned Enterprises.

(b) Each Participant will ensure that any regulatory body, and any other body exercising a regulatory function, that it establishes or maintains:

(i) Is independent from, and not accountable to, any of the enterprises regulated by that body.

(ii) In like circumstances, acts impartially with respect to all enterprises regulated by that body; the impartiality with which the body exercises its regulatory functions is to be assessed by reference to a general pattern or practice of that body.

(c) Each Participant will apply its laws and regulations to public enterprises in a consistent and non-discriminatory manner.

23. Consultation

If a Participant believes that its trade and investment interests are being adversely affected by the operations of a public enterprise of the other Participant, it may request consultation on the matter. The Participants will consult with each other in good faith with a view to resolving the matter. The requesting Participant will indicate, if relevant, how the matter affects trade or investment between the Participants. 

Part 6: cooperation

24. Multilateral cooperation

(a) The Participants recognise the importance of the multilateral trading system to ensure a predictable and fair investment environment and will seek opportunities to collaborate on areas relating to investment within multilateral fora of which they are both party.

(b) The Participants recognise the need to strengthen multilateral rules concerning both subsidies and public enterprises and will explore opportunities to cooperate in multilateral fora, including the WTO, to develop these rules.

(c) The Participants, where appropriate, will seek opportunities to exchange information and share experiences on current initiatives, efforts, and work developed in relevant international fora with respect to any matter covered by this Arrangement on Investment.

25. Cooperation mechanism

(a) The Participants will seek to identify and as appropriate, pursue solutions to, specific barriers to investment and will cooperate to identify and respond to potential and future disruptions to investment. In doing so, the Participants will notify each other of a designated investment policy lead at official-level and will promptly notify each other of any change to its investment policy lead. The investment policy leads will:

(i) Facilitate communications between the Participants on any matter they consider relevant to investment.

(ii) Where appropriate, facilitate coordination between the Participants and any overarching working group established under the ETP, on any matter covered by this Arrangement on Investment.

(b) The Participants, through their Designated Representatives, may hold meetings or conduct dialogues, upon request, on issues that are relevant to this Arrangement on Investment.

26. Competition cooperation

(a) The Participants recognise that their competition authorities may cooperate to promote the effective application and enforcement of competition law.

(b) The Participants recognise that it is in their common interest to work together on technical cooperation activities to strengthen the development and implementation of competition policy and law.

(c) Any cooperation by a Participant will be compatible with the law in its territory and important interests and within its available resources.

27. General provisions

(a) The Participants acknowledge that, as set out in the ETP signed on 8 November 2023, paragraph 1 on Designated Representatives and paragraphs 6 to 10 on Information Sharing and Confidentiality, Intellectual Property, Funding, Interpretation and Application, Review and Business Engagement will apply to this Arrangement on Investment. The Participants acknowledge the commitments under this Arrangement on Investment as an integral part of the ETP.

(b) The Participants’ commitments under this Arrangement on Investment may be carried out through their respective Designated Representatives, who may coordinate with relevant competent authorities to ensure that the commitments are effectively implemented.

28. Commencement, amendment, and termination

(a) This Arrangement on Investment will come into operation on the date of the later of the Participants’ signatures and will continue to have effect until it is terminated.

(b) The Participants may amend this Arrangement on Investment at any time upon their mutual written consent.

(c) Either Participant may terminate this Arrangement on Investment by providing 90 days’ written notice of its withdrawal to the other Participant.

The foregoing record represents the understandings reached between the Taipei Representative Office in the United Kingdom and the British Office Taipei, upon the matters referred to therein. 

Signed in duplicate in the English language.

Chin-Hsiang Yao

Representative

Taipei Representative Office

Ruth Bradley-Jones

Representative

British Office Taipei

1. For the purposes of this section, ‘Person’ means a natural person or an enterprise. ↩

2. This paragraph is without prejudice to the outcome of future WTO discussions on the definition of subsidies for services. The Participants agree to consider updating this Arrangement on Investment, as appropriate, to reflect any agreement reached on the definition of subsidies for services at the WTO. ↩

3. ‘Commercial activities’ means activities, the end result of which is the production of a good or the supply of a service to be sold in the relevant market in quantities and at prices determined by an enterprise on the basis of the conditions of supply and demand, and which are undertaken with an orientation towards profit-making; activities undertaken by an enterprise which operates on a non-profit basis or a cost-recovery basis are not activities undertaken with an orientation towards profit-making. ↩

4. ‘Commercial considerations’ means considerations of price, quality, availability, marketability, transportation, and other terms and conditions of purchase or sale, or other factors that would normally be taken into account in the commercial decisions of a privately owned enterprise operating according to market economy principles in the relevant business or industry. ↩