The Indo-Pacific Economic Framework (IPEF), launched in May 2022 by the United States, is an economic initiative for countries in the Indo-Pacific region. Here's a breakdown of key points about IPEF:
Goals:
● Promote economic growth, fairness, and competitiveness among member economies.
● Strengthen resilience, sustainability, and inclusivity in the region.
● Counter China's growing economic influence (according to some analysts).
Structure:
IPEF is designed to be flexible. Members can choose to participate in all or some of its four main pillars:
Trade: Establishes common rules for trade between members, but is not a traditional free trade agreement. Supply Chains: Focuses on building strong, secure, and sustainable supply chains. Clean Energy, Decarbonization, and Infrastructure: Promotes clean energy development, reduces greenhouse gas emissions, and improves infrastructure. Fair and Resilient Trade: Addresses issues like corruption, labor standards, and intellectual property rights.
Membership:
Currently, IPEF has 14 members:
● Australia
● Brunei Darussalam
● Fiji
● India (opted out of the trade pillar)
● Indonesia
● Japan
● Republic of Korea
● Malaysia
● New Zealand
● Philippines
● Singapore
● Thailand
● United States
● Vietnam
Benefits:
● Potential for increased trade and investment among member countries.
● Collaboration on important issues like climate change and supply chain security.
● Stronger economic ties between the U.S. and other Indo-Pacific nations.
Recent Developments:
● In February 2024, the IPEF member countries signed an agreement related to building resilient supply chains.
●India is participating in the clean energy pillar and considering joining initiatives on clean electricity and sustainable aviation fuel.
Overall, IPEF is a significant economic initiative in the Indo-Pacific region. Its success will depend on the level of participation by member countries and their commitment to achieving its goals.
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