Know the IPEF framework of cooperation era. of the United States, ‘Thailand’, one of the 13 nations
US President Joe Biden On a trip to Asia in the past week, it plans to announce a newly conceived framework for multinational economic cooperation in Asia, dubbed Indo-Pacific Economic Cooperation Framework (Indo-Pacific Economic Framework: IPEFHowever, questions remain as to what the framework for cooperation is. And what role will it play?
AP news agency US media reported the beginning of the initiative: as a result of The US president’s “distractions” on trade policies with Asia whether it is unable to rejoin “Economic Partnership Agreement in the Pacific Region” or TPP That ex-President Donald Trump withdrew in 2017 and a string of US trade deals has become a subject that American voters say is contributing to the mass loss of jobs.
That led Biden to come up with a plan. “Indo-Pacific Economic Cooperation Framework” (IPEF) (pronounced “IPEF”) rises to Biden. The plan was announced during a visit to Japan on May 23.
Who are the members?
The framework for cooperation has 13 member nations, namely: United States, Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Vietnam and Thailand. All member states have a national gross product of 40 percent of the world’s gross domestic product.
What will IPEF do?
IPEF consists of 4 main pillars: fair and resilient trade, supply chain resilience, infrastructure and climate change; andAnti-Corruption Tax
However, the details of these matters are still unclear. Biden’s announcement of the launch of the IPEF will signal to member states to decide what a framework for cooperation will be. Most of the content will still be about Most of the “expectations,” while the broader aim is that the US wants to signal its leadership in Asia.
“We are drafting new rules for the 21st century economy. They will help the economy of all countries grow faster and more fair. We will do this by addressing the biggest challenge slowing growth,” Biden said in announcing the launch of IPEF.
Jake Sullivan, national security adviser U.S. White House spokesman said the IPEF was focused on co-ordinating economic cooperation in the Indo-Pacific region. Setting new standards and regulations especially in regards to the digital economy. and try to make the supply chain more secure and flexible.
The notion of the need to standardize global trade is not solely the result of American dissatisfaction. Rather, it is perceived by the impact of the epidemic that has disrupted the entire supply chain. factory closed delivery ship delayed A congestion occurred at the port. and resulted in inflation all over the world. These issues became especially apparent when Russia led troops to invade Ukraine As a result, global food and energy prices have skyrocketed to dangerous levels.
Who will clearly outline the cooperation?
The task of negotiating with US partner nations is under four pillars. “U.S. Trade Representative” and “U.S. Department of Commerce”
The “US Trade Representative” will be responsible for discussing the “fair trade” is expected to include efforts to prevent unemployment in the United States. because after China Joining the World Trade Organization (WTO) in 2001 led to the layoffs of many US factory workers. This caused dissatisfaction with Americans and resulted in Donald Trump stepping up to the presidency. And as soon as Trump took office in 2017, Trump immediately led the United States out of the TPP.
The Commerce Department will oversee the remaining three pillars: supply chain resilience, infrastructure and climate change. and anti-corruption tax by Gina Raimondo, US Secretary of Commerce who joined the trip to Japan with Mr. Biden take charge of this section
The report, citing US officials, said member states could choose which pillar to support. without the need to support all 4 pillars mentioned above
Taiwan did not participate.
The White House says IPEF will be an open platform. However, the IPEF framework has also been heavily criticized by China, saying the United States is playing a political game through the framework. and also stated that it was the use of Cold War principles. and will lead to chaos in the region
Of course, Taiwan is the country that is the leader in manufacturing. The “computer chips” that will be a key part of the digital economy are not included in the IPEF, partly because of Taiwan. Has always been sensitive to mainland China, which has claimed sovereignty over Taiwanese territory. In the case of Taiwan, Jake Sullivan said the United States would have direct trade talks with Taiwan, the report said.
How long does it take to negotiate?
After the negotiations began The framework for cooperation is expected to take within 12-18 months, which is the fastest time for international trade talks.