Takaichi's Victory Could Fast-Track Taiwan-Japan EPA: Expert

Why It Matters

A fast‑tracked EPA would deepen trade, technology sharing, and supply‑chain resilience for Taiwan while reinforcing Japan’s strategic foothold in the Indo‑Pacific amid rising China pressure.

Key Takeaways

• Takaikka's LDP won 316 of 465 lower‑house seats
• Expert predicts accelerated Taiwan‑Japan EPA negotiations
• Japan‑Taiwan ties strengthen despite China‑related tensions
• Youth exchanges planned between DPP and LDP factions
• Increased Japanese lawmaker visits expected under new leadership

Pulse Analysis

Japan’s political realignment following Prime Minister Sanae Takaichi’s decisive election win reshapes the country’s trade agenda. With a three‑quarter majority in the lower house, the Liberal Democratic Party now has the legislative bandwidth to prioritize bilateral agreements, notably the long‑pending Taiwan‑Japan Economic Partnership Agreement. The EPA, long stalled by diplomatic sensitivities, could become a cornerstone of Japan’s broader strategy to diversify supply chains and counterbalance China’s economic clout in the region.

For Taiwan, securing the EPA promises immediate tariff reductions, smoother market access for high‑tech components, and a boost to its export‑driven economy. The agreement aligns with Taipei’s push to deepen ties with like‑minded democracies, offering a hedge against geopolitical volatility. Moreover, the EPA’s strategic dimension—enhancing economic security cooperation—mirrors Takaichi’s prior role overseeing Japan’s economic security portfolio, suggesting a policy shift that integrates trade with defense considerations.

Beyond the headline trade pact, the election outcome is spurring softer diplomatic initiatives. Youth exchanges between Taiwan’s Democratic Progressive Party and Japan’s LDP Youth Division aim to cement long‑term relationships, while increased visits by Japanese lawmakers signal a more active parliamentary dialogue. Business leaders on both sides are watching for clearer timelines, as the legislative majority could expedite ratification processes. Nonetheless, lingering concerns over China’s reaction and domestic political calculations may temper the pace, making stakeholder coordination essential for translating political capital into concrete economic outcomes.

Takaichi's victory could fast-track Taiwan-Japan EPA: Expert

02/09/2026 09:58 PM · By Tai Ya‑chen, Chen Kai‑yu, Chao Yen‑hsiang and Frances Huang

![CNA file photo]

Taipei/Tokyo, Feb. 7 (CNA) – After Japanese Prime Minister Sanae Takaichi's sweeping victory in a snap lower‑house election, Taiwan could see substantive progress in its pursuit of an economic partnership agreement (EPA) with Japan, an expert said Monday.

Lim Chuan‑tiong (林泉忠), a project researcher at the University of Tokyo's Institute for Advanced Studies on Asia, told CNA that he expected that with Takaichi's power cemented by the vote, Taiwan and Japan will see an increase in economic exchanges.

In an attempt to consolidate her leadership, Takaichi – Japan's first female prime minister – dissolved the House of Representatives in late January. Her Liberal Democratic Party (LDP) went on to secure 316 of the lower house's 465 seats in Sunday's election, marking a record haul since the chamber adopted its current form in 2017.

The Japan Innovation Party (JIP), the LDP's coalition partner, won 36 seats, giving the ruling alliance more than three‑quarters of the total seats in the lower house.

Lim said President Lai Ching‑te (賴清德) met with Takaichi in Taipei last year, raising the issue of the signing of an EPA with Japan, while Foreign Minister Lin Chia‑lung (林佳龍) received Japanese lawmakers recently, and also talked about the hoped‑for EPA.

“Takaichi used to serve as Japan's Minister of State for Economic Security and she has a better understanding about the strategic meaning of signing an EPA for Japan and Taiwan,” Lim said.

“I believe under the reign of Takaichi, there is a higher chance Japan and Taiwan will sign an EPA, a way to further push for bilateral economic cooperation,” Lim added.

In addition to economic and trade issues, Lim said Japan and Taiwan are expected to interact more frequently.

“Despite tensions with China, Japanese lawmakers have visited Taiwan frequently. That demonstrates the China factor has never weakened ties between Japan and Taiwan.”

“Takaichi's overwhelming win is expected to make even more Japanese lawmakers willing to visit Taiwan,” he said.

Taiwan's ruling Democratic Progressive Party has set up the Department of Youth Development since last year, advising the department to launch exchanges with the LDP's Youth Division, Lim noted, adding that he expects the DPP and LDP to engage in more frequent cross‑generation exchanges under Takaichi's term in office.