The United States and 13 other members of the Indo-Pacific Economic Framework (IPEF) have agreed on three of the initiative's four pillars -- supply chains, climate, anti-corruption, and trade. The IPEF was launched in 2022 by President Joe Biden and includes countries such as Australia, Japan, South Korea, and Vietnam. The signing ceremony for the supply chain resilience pillar, aimed at reducing dependence on China, was held. However, negotiators have not reached an agreement on the trade pillar, which is seen as a setback for the Biden administration's efforts to create a 'free and open Indo-Pacific' and encourage regional economies to decouple from the Chinese market [8a755648] [6742c063].
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. 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].
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 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].