Prime Minister Anthony Albanese has suggested Australia is very unlikely to support Taiwan's push to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in a move which is likely to deeply disappoint Taipei.
The regional trade pact takes in 11 countries around the Pacific, including Australia, Canada, New Zealand and Japan.
China and Taiwan have both been pushing to join the pact, with the Morrison government previously leaving the door open to supporting Taipei's request.
But speaking at the APEC meeting in Bangkok, Mr Albanese said the agreement was only for "recognised" nation-states, rather than economies.
"The CPTPP is a relationship between nation-states which are recognised," he said.
"Taiwan is represented here (at APEC) as an economy."
While Taiwan has a separate government to China, it is only recognised by 14 countries including Guatemala and Tuvalu.
Beijing claims ownership over Taiwan, and has been pressing to diplomatically isolate it, as well as blocking its entry to global bodies and trade blocs.
However Australia, like most nations, does maintain unofficial relations with Taiwan, as well as a healthy trading relationship.
The prime minister's statement also seems to be contradicted by the text of the CPTPP which doesn't indicate that nationhood is a prerequisite for joining the CPTPP.
The section on joining the CPTPP says that "any State or separate customs territory may accede to this Agreement" – a definition which would clearly include Taiwan.
Taiwan seeking clarity
Taiwan's Ministry of Foreign Affairs said Taipei was currently trying to contact Australian representatives to clarify the government's position.
"The CPTPP is open to all economies that meet its high standards", said spokeswoman Joanne Ou.
Ms Ou said she was not aware that any other member state had questioned Taiwan's application.
Benjamin Herscovitch from the Australian National University said that while all CPTPP members to date have been internationally recognised sovereign states, there was "no reason why Taiwan couldn't become a CPTPP member."
"The prime minister most likely just misspoke. As he said himself, the Australian position hasn't changed" he said.
Dr Herscovitch also said the prime minister's comment was "poorly timed" as it came "just three days after his meeting with President Xi Jinping."
"There's the risk that his comments will look like a concession to the Chinese government. China doesn't want Taiwan in the CPTPP, and the prime minister's comments will probably be chalked up as a win in Beijing," he said.
"But there's nothing to suggest that the prime minister made these comments at President Xi's behest."
"The prime minister and his foreign and trade ministers should clarify that Australia remains open to Taiwan's CPTPP accession. That message is especially critical given that Taiwan's accession would benefit Australia economically and strategically."
Shadow Foreign Minister Simon Birmingham said the prime minister's statement was factually wrong.
"Mr Albanese doesn't seem to know or understand that Taiwan participates in the World Trade Organization as a full member, equal to any other," he said.
"It's membership of the CPTPP shouldn't be tied to its statehood status but considered on the merits of extending the agreement, the importance of maintaining unity among existing members and whether it can meet the high standards of the agreement."
Senator Birmingham also said that the prime minister's comments put him "at odds" with Japan, which has indicated it's open to including Taiwan in the pact.
"Given the confusion created by Mr Albanese's erroneous explanation and starkly different approach to that of a key CPTPP partner, there is a need for Mr Albanese to clarify his remarks promptly," he said.
A senior Coalition source told the ABC that the prime minister had to quickly explain what he meant by his comments.
"Albanese needs to clarify what advice he relied on and why he said what he said," they told the ABC.
"This is a global embarrassment and looks like he has traded a meeting with a dictator for supporting a vibrant Asian democracy join a vital geo-economic institution. This sends all the wrong signals to our friends across the region."
Mr Albanese suggested that the government's adherence to the "One China" policy was behind its thinking on the CPTPP.
"There is bipartisan support for the One China policy," he said.
"We support the status quo on Taiwan and on the Taiwan Strait. We don't want to see any unilateral action that alters that status quo."
