Vilnius: Lithuania and Taiwan have mutually agreed to suspend negotiations on an economic cooperation action plan, Lithuania’s Foreign Ministry announced Monday. The decision to pause talks follows political changes in Vilnius, as a new government is set to take office.

According to Anadolu Agency, the Lithuanian Foreign Ministry stated that the suspension was necessary due to shifts in the country’s domestic political environment. Negotiations are expected to resume once the new government is formally established and its program is approved. Initially, officials aimed to finalize the action plan by the end of May, with a signing ceremony anticipated in early June. The document is intended to identify priority areas for economic collaboration and joint projects, particularly in supporting Lithuania’s high-tech sector.

The suspension coincides with Lithuania’s preparations for a governmental transition after the Social Democrats, Democrats “For Lithuania,” and the Farmers and Greens Union signed a coalition agreement last week. The coalition is anticipated to appoint Social Democratic leader Mindaugas Sinkevicius as the head of the new cabinet.

The future of Foreign Minister Kestutis Budrys is uncertain, as some coalition members have criticized his management of relations with China and the perceived lack of progress in enhancing ties with Beijing. President Gitanas Nauseda has indicated that Budrys’ continuation in office will depend on outcomes, including advancements in negotiations with China and economic cooperation with Taiwan.

Lithuania and Taiwan have been working to strengthen economic ties since Taiwan opened a representative office in Vilnius in 2021, a move that drew strong objections from China. In response, Beijing downgraded diplomatic relations with Lithuania and imposed informal trade restrictions.

Despite these challenges, the Lithuania-Taiwan partnership has been promoted as a means to foster cooperation in high-tech industries and investment. However, some critics question whether the partnership has yielded the expected economic benefits.

The Lithuanian Foreign Ministry emphasized that the action plan remains a working document and will continue to serve as a framework for future cooperation once discussions resume.