diff --git a/pandas/tests/io/parser/test_encoding.py b/pandas/tests/io/parser/test_encoding.py
index f23b498c7388a..876696ecdad9c 100644
--- a/pandas/tests/io/parser/test_encoding.py
+++ b/pandas/tests/io/parser/test_encoding.py
@@ -10,7 +10,7 @@
 import numpy as np
 import pytest
 
-from pandas import DataFrame
+from pandas import DataFrame, read_csv
 import pandas._testing as tm
 
 
@@ -199,3 +199,17 @@ def test_encoding_named_temp_file(all_parsers):
 
         result = parser.read_csv(f, encoding=encoding)
         tm.assert_frame_equal(result, expected)
+
+
+@pytest.mark.parametrize(
+    "encoding", ["utf-8", "utf-16", "utf-16-be", "utf-16-le", "utf-32"]
+)
+def test_parse_encoded_special_characters(encoding):
+    # GH16218 Verify parsing of data with encoded special characters
+    # Data contains a Unicode 'FULLWIDTH COLON' (U+FF1A) at position (0,"a")
+    data = "a\tb\n：foo\t0\nbar\t1\nbaz\t2"
+    encoded_data = BytesIO(data.encode(encoding))
+    result = read_csv(encoded_data, delimiter="\t", encoding=encoding)
+
+    expected = DataFrame(data=[["：foo", 0], ["bar", 1], ["baz", 2]], columns=["a", "b"])
+    tm.assert_frame_equal(result, expected)