Lithuania, Taiwan suspend talks on economic cooperation action plan

Lithuania and Taiwan have suspended negotiations on a planned economic cooperation action plan by mutual agreement, Lithuania's Foreign Ministry said Monday, citing political changes following the formation of a new government in Vilnius.

The ministry said the pause was prompted by changes in Lithuania's domestic political environment and that negotiations are expected to resume once the incoming government formally takes office and its program is approved, LRT news reported.

Officials had previously said the action plan would be finalized by the end of May, with a signing ceremony expected in early June. According to the ministry, the document is intended to outline priority areas for economic cooperation and joint projects aimed at strengthening long-term ties and supporting the development of Lithuania's high-tech sector.

The suspension comes as Lithuania prepares for a change in government after the Social Democrats, Democrats "For Lithuania" and the Farmers and Greens Union signed a coalition agreement last week. The coalition is expected to form a cabinet led by Social Democratic leader Mindaugas Sinkevicius.

The future of Foreign Minister Kestutis Budrys remains uncertain amid criticism from some coalition members over his handling of relations with China and what they describe as limited progress in efforts to improve ties with Beijing. President Gitanas Nauseda has said Budrys' continuation in office will depend on results, including progress in negotiations with China and the advancement of economic cooperation with Taiwan.

Lithuania and Taiwan have sought to deepen economic ties since Taiwan opened a representative office in Vilnius in 2021, a move that sparked strong objections from China. Beijing, which considers Taiwan part of its territory, downgraded diplomatic relations with Lithuania and imposed informal trade restrictions following the opening of the office.

The Lithuania-Taiwan partnership has since been promoted by both sides as a platform for cooperation in high-tech industries and investment, though critics have questioned whether the relationship has delivered the level of economic benefits initially expected.

The Foreign Ministry said the action plan remains a working document and will serve as a framework for future cooperation once talks resume.