India Expands Role in IPEF with New Agreements on Clean and Fair Economies

2024-09-22 20:42:06.496000

On September 22, 2024, during Prime Minister Narendra Modi's visit to Delaware for the Quad Summit, India signed significant agreements under the Indo-Pacific Economic Framework (IPEF), specifically on Clean Economy (Pillar III) and Fair Economy (Pillar IV). These agreements were part of a broader commitment to enhance economic collaboration with the United States and other member countries of the IPEF, which collectively represent approximately 40% of global GDP and 28% of global trade. The Clean Economy pact aims to bolster energy security and reduce dependence on fossil fuels, while the Fair Economy agreement emphasizes transparency and anti-corruption measures in trade practices. [ec7377ad]

In addition to these new agreements, India had previously signed Pillar II on supply chain resilience in February 2024 and opted for observer status in the trade talks under Pillar I. The IPEF, launched by President Biden in May 2022, includes 14 member nations and focuses on fostering economic resilience and sustainability in the Indo-Pacific region. [ec7377ad]

The agreements signed on September 22 complement the recent introduction of the India-US Drug Policy Framework and Memorandum of Understanding (MoU), which aims to combat synthetic drug trafficking while promoting public health initiatives. This initiative follows the first-ever U.S.-India Cancer Dialogue held in August 2024, focusing on collaborative efforts in cancer research and treatment. [ec420b51]

Moreover, a financial commitment of $50 million from the Development Finance Corporation to Panacea Biotech for vaccine production was highlighted during the discussions. Both leaders also discussed the Bio5 partnership, aimed at strengthening pharmaceutical supply chains between the two nations. [ec420b51]

Earlier in September, India had signed three crucial agreements under the IPEF framework, which were approved by the Union Cabinet. The agreements focus on enhancing technical cooperation and investments in green technology, as well as creating a predictable trade environment for Micro, Small, and Medium Enterprises (MSMEs). A ministerial-level oversight mechanism has been established to monitor the implementation of these agreements. [f02af313]

India's involvement in the cooperative work programme on carbon markets under the IPEF is also noteworthy, with the Ministry of Power overseeing its participation. The country is exploring additional cooperative work programmes on clean electricity and sustainable aviation fuel, although concerns have been raised regarding the potential impact of international commitments on India's domestic regulations. [a1902791]

In a related development, Uganda signed its fourth Country Programme Framework (CPF) with the International Atomic Energy Agency (IAEA) for the period of 2024-2029, identifying key areas for nuclear cooperation. [640b8a6f]

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