Singapore, the United States, and 12 other Indo-Pacific countries have signed agreements aimed at lowering carbon emissions and combating corruption in trade. The agreements include the IPEF Clean Economy Agreement, IPEF Fair Economy Agreement, and the IPEF Trade pillar under the Supply Chain Agreement. The Clean Economy Agreement focuses on accelerating the deployment of clean energy technology, developing offshore electricity infrastructure, and promoting carbon market activities. The Fair Economy Agreement aims to strengthen anti-corruption measures and taxation initiatives to promote a fair and transparent regional business environment. The agreements will undergo legal scrubbing before being signed and ratified. The IPEF partners will establish coordination bodies to work together on supply chains and promote supply chain resilience [6742c063] [f1bad4bc].
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].