Indo-Pacific Economic Framework (IPEF)

The Indo-Pacific Economic Framework (IPEF) is a regional forum initiated by the US Biden administration mainly motivated by strategic competition with China, to secure alternative supply chains. Proponents say IPEF will strengthen economic cooperation between its participants and include high labour and environmental standards; a digital trade framework; open and predictable supply-chains,  investment in de-carbonisation and clean energy and  transparent tax and anti-corruption standards. See the 'Four Pillars' negotiating objectives here. IPEF does not include market access commitments like lower tariffs. The main incentives are increased investment and capacity building projects.  

So far, IPEF includes the US, Australia, Brunei, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Fiji and Vietnam. Other countries may join later.

The US is not part of the two big existing regional trade agreements. These are the Regional Comprehensive economic Partnership (RCEP) of the ten ASEAN countries plus five other countries, and the Comprehensive and Progressive Trans-Pacific Partnership of 11 Pacific Rim countries (CPTPP), because of bipartisan opposition to trade deals which give increased market access to US markets. The U.S. Congress does not currently have ‘fast track’ authority which enables negotiation of trade agreements that offer tariff reductions or other access to US markets,  so it will not be enforceable through trade penalties. IPEF may be a mixture of  diplomatic agreements  and aspirational statements.

If there are some legally binding IPEF agreements in areas like digital trade, they may be modelled on existing trade agreements like  the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) and the Singapore Digital Economy Agreement that are dominated by corporate interests. Without genuine consultation with trade unions, environmentalists and other civil society organisations, IPEF will not meet its claimed goals of improving workers’ rights and environmental standards.
 

See our short explainer  in The Conversation., our longer IPEF submission to the Department of Foreign Affairs and Trade (DFAT) and the recording of our December 13, 2022 IPEF public seminar here.

 

US Trade justice campaigners press IPEF talks on labour rights, environment, digital

May 23, 2023: A coalition of US trade justice organisations rallied in Detroit on May 20 during the Asia Pacific Economic Cooperation (APEC) talks there, to highlight the Ministerial Meeting for the Indo-Pacific Economic Framework (IPEF) set for May 27. They posed the rights of workers and the planet against corporate priority for profits in IPEF.

US agenda revealed at IPEF talks in Bali

March 28, 2023: The summaries of US inputs at the recent Bali round of negotiations for the Indo-Pacific Economic Framework (IPEF) reveal US pressure of the other 13 states to adopt US standards. At the same time the US Congress is yet to determine the IPEF agenda on the “digital economy”.

IPEF includes the US, Australia, Brunei, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Fiji and Vietnam.

403 US Labor and Civil Society Groups speak out on Indo-Pacific Trade Deal

Monday March 6, 2023 : Over 400 US labor and civil society organisations have written to President Biden outlining their priorities for the pending <a href="http://aftinet.org.au/cms/Indo-pacific-economic-framework#overlay-contex... Economic Framework</a> (IPEF) trade agreement. <a href="https://www.citizenstrade.org/ctc/blog/2023/03/02/403-labor-and-civil-so... letter</a> comes shortly before the Office of the US Trade Representative is expected to introduce US proposals for IPEF&rsquo;s labor, environment and digital trade chapters during a key negotiating round being held in Bali, Indonesia, on March 13-19.

Indo-Pacific Economic Framework (IPEF) negotiations Brisbane, plus AFTINET public forum recording

December 16, 2022: IPEF negotiators from 14 Indo-Pacific countries met in Brisbane from December 10-15. They include the United States, Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam.

IPEF is a US initiative to diversify its supply chains away from China towards its allies and create US-style rules in the region. It is not a traditional trade agreement with binding commitments because the US is not offering any more access to its own markets, but relying on investment projects as incentives, especially for developing countries. The US is chairing most negotiations and pushing for quick agreements.

The Labor government’s policy on trade transparency promises more transparent and accountable trade negotiations, including access to negotiating texts and independent evaluation of costs and benefits of trade agreements.

Explainer article on the Indo-Pacific Economic Framework (IPEF)

December 9, 2022: The Indo-Pacific Economic Framework (IPEF) is a US initiative to diversify US supply chains away from China towards US allies and create US-based rules in the region.

Dr Patricia Ranald's explainer article analyses why IPEF challenges the Albanese government’s policies on trade transparency, enforceable labour and environmental standards and regional stability.

https://theconversation.com/what-is-the-indo-pacific-economic-framework-about-to-be-negotiated-in-brisbane-196122

AFTINET submission to the Indo-Pacific Economic Framework (IPEF)

November 2, 2022: DFAT has called for submissions  on the negotiating objectives of the Indo-Pacific Economic Framework (IPEF)

IPEF is the economic arm of the US economic and strategic rivalry with China in the region. The US is not part of the Regional Comprehensive economic Partnership (RCEP) of the ten ASEAN countries plus five other countries including China, nor the Comprehensive and Progressive Agreement on Trans-Pacific Partnership  (CPTPP) of 11 Pacific Rim countries. This is not a conventional trade agreement, as the US is not offering any market access to their domestic market. 

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