Indo-Pacific Economic Framework for Prosperity Partner Nations Announce Milestones in Supply Chain and Clean Economy

2023-11-16 14:51:54.466000

Climate activists from Bay Climate Action rallied outside the Indo-Pacific Economic Forum negotiations in San Francisco, calling for more language about environmental standards in America's trade deals [c9613a31]. The activists delivered a petition with over 15,000 signatures to the convention center where the negotiations were taking place. They aimed to send a message that people are ready for bold climate action and to highlight the need for environmental justice and sustainability. The rally was the first of many protest actions expected during the Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Week [c9613a31].

The activists called for transparency in trade negotiations, global climate justice, and a stop to trade attacks on climate action. They also advocated for the adoption of a Climate Peace Clause to prevent anti-environmental red tape and litigation. The Indo-Pacific Economic Framework (IPEF) for Prosperity, launched in May 2022, is the Biden administration's plan to advance US interests in the Asia-Pacific region. The framework focuses on fair and resilient trade, supply chain resilience, supporting clean economies, and combating corruption. The IPEF negotiations involve trade leaders from the US, ASEAN member states, Australia, Fiji, India, Japan, South Korea, and New Zealand [c9613a31].

President Biden is considering making changes to a global trade pact with a dozen Asian countries just days before its formal introduction. The trade deal, called the Indo-Pacific Economic Framework for Prosperity, aims to strengthen ties between the United States and its allies in the region to counter China's growing influence. However, some Democrats are concerned that the deal does not include environmental and labor protections. The Biden administration is now weighing whether to add these protections at a later date. The last-minute scramble reflects the collision of Biden's goals of countering China and aligning with labor unions. The trade deal is expected to be announced this week at a summit in San Francisco.[617e7001]

The United States and 13 other Indo-Pacific countries were unable to reach a substantial trade deal during ministerial talks. The meeting, called the Indo-Pacific Economic Framework, aimed to promote a rules-based economic order in the region. While progress was made in some aspects, no substantial agreement was reached for the whole trade area. The discussions focused on creating common rules and standards across four pillars: trade, supply chains, clean energy and infrastructure, and tax and anti-corruption. The group is expected to largely agree on language for the third and fourth pillars, but a consensus on trade is unlikely to be reached in time for the annual summit of the Asia-Pacific Economic Cooperation forum. The 14-member group, which does not include China, accounts for about 40 percent of the global economy. The meeting comes ahead of a scheduled bilateral summit between U.S. President Joe Biden and Chinese President Xi Jinping.[7fb68f96]

The U.S. is pursuing the Indo-Pacific Economic Framework (IPEF) as a trade 'framework' rather than a traditional trade deal with Asia. This approach allows the Biden administration to bypass Congress and address issues such as supply chains and climate change that have historically been outside trade deals. The IPEF has four major pillars: supply chains, climate, anti-corruption, and trade. While agreements on supply chains, climate, and anti-corruption are expected to be announced, negotiations are still ongoing for the trade pillar, which includes issues like labor, environmental standards, and rules for digital companies. The U.S. and its 13 partner countries, representing 40% of global GDP, are involved in the IPEF. The approach of pursuing a trade framework rather than a trade deal reflects the negative sentiment among U.S. voters towards trade deals that are seen as causing job loss. The IPEF aims to address these concerns while writing new rules for the 21st-century economy. The article highlights the significance of the IPEF in the context of U.S. politics, the global economy, and the Biden administration's ambitions.[19d1fe08]

The 14 partner nations of the Indo-Pacific Economic Framework for Prosperity (IPEF) have announced major milestones related to supply chain, clean economy, and fair economy. They have signed agreements and achieved unprecedented results in record time, developing innovative approaches to addressing 21st-century challenges. The IPEF partners are committed to pursuing shared climate objectives, promoting sustainable growth, and success for all partners. They aim to accelerate the research, development, and deployment of clean energy technologies, strengthen clean energy supply chains, promote renewable energy and energy efficiency, decarbonize the transportation sector, and advance economic clusters focused on clean technologies. The partners also seek to enhance fairness, inclusiveness, transparency, the rule of law, and accountability in their economies to improve the trade and investment environment in the Indo-Pacific region. They will work together to prevent and combat corruption, improve tax transparency, and support labor rights. The partners will establish a Capacity Building Framework to enhance each other's capabilities and a formalized structure for ongoing cooperation at the ministerial level. They have also signed the Indo-Pacific Economic Framework for Prosperity Agreement Relating to Supply Chain Resilience to build resilient and competitive supply chains across the region.[f1bad4bc]

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