India and U.S led Indo-Pacific Economic Framework

Category
International Relations
Published
16th Sep, 2022

Context

India has decided to join three pillars of the United States-led Indo-Pacific Economic Framework (IPEF)--supply chains, tax and anti-corruption and clean energy–while opting out of the trade pillar for now.

About

India was the only country not to join the declaration on trade.
Members: India, USA, Australia, Brunei, Fiji, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and Vietnam.

Indo-Pacific Economic Framework (IPEF):

The Indo-Pacific Economic Framework (IPEF) was launched by United States (US) President Biden in Tokyo in May, 2022.
The IPEF has four pillars:
- Trade
- supply chains
- clean energy, decarbonisation and infrastructure
- tax and anti-corruption
Except Cambodia, Laos and Myanmar, other Southeast Asian nations are a part of the IPEF.
The Framework will advance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness for our economies.
Through IPEF, the partners aim to contribute to cooperation, stability, prosperity, development, and peace within the region.
The Framework will also offer tangible benefits that fuel economic activity and investment, promote sustainable and inclusive economic growth, and benefit workers and consumers across the region.
The 14 IPEF partners represent 40 percent of global GDP and 28 percent of global goods and services trade.

Trade Pillar

Supply Chain Pillar

Clean Energy Pillar

Fair Economy Pillar

In the Trade Pillar, the IPEF partners will seek high-standard provisions in areas that are foundational to resilient, sustainable, and inclusive economic growth, including;

Labour,
Environment,
Digital economy,
Agriculture,
Transparency and
Good regulatory Practices

In the Supply Chain Pillar, the countries will seek to coordinate actions to mitigate and prevent future supply chain disruptions and secure critical sectors and key products for our manufacturers

In the Clean Energy Pillar, the countries will seek to expand investment opportunities, spur innovation, and improve the livelihoods of citizens as the partners unlock the region’s abundant clean energy resources and substantial carbon sequestration potential.