The Indo-Pacific Economic Framework (IPEF) is a multilateral initiative promoted by Washington and conceived as a “flexible” club that brings together nearly 40% of the world’s GDP, with the aspiration of catalyzing the growth of its members and of counter Chinese influence.
The new initiative joins a growing ecosystem of multilateral projects in the Asia-Pacific region such as the Regional Comprehensive Economic Association (RCEP) or the Trans-Pacific Comprehensive and Progressive Agreement for Economic Cooperation (CPTPP), with which it shares certain similarities and also differences .
Less ambitious than the RCEP and the CPTPP, the latter agreement abandoned by the United States by decision of President Joe Biden’s predecessor, Donald Trump, the IPEF was born to show the renewed will of the world’s leading power to strengthen its position in a region more subject to the power of Beijing.
HOW DID THE IPEF COME ABOUT?
Joe Biden Last October he spoke for the first time of “an economic framework for the Indo-Pacific”, within which the US and countries in the area would define “shared objectives” in different areas, during an East Asia summit.
The project arises with the aim of reducing economic dependence on China, and especially that of semiconductors and other key components for various industries, as a result of supply interruptions during the pandemic and Russia’s invasion of Ukrainewhich in turn reignited concern about Taiwan’s future.
IPEF members “share a commitment to a free, open, fair, inclusive, interconnected, resilient, secure and prosperous Indo-Pacific region”, and with the “potential for sustainable and inclusive economic growth”, states the joint statement of this initiative presented today in Tokyo.
The text thus resorts to language similar to that of the Quad and other multilateral initiatives promoted by Washington and Tokyo as a containment barrier against Beijing, although without directly naming the Asian giant, which has nonetheless taken the hint and has criticized the new framework .
WHAT COUNTRIES ARE IN IT?
Along with the United States and Japan, the world’s first and third largest economies, founding members include Australia, Brunei, South Korea, India, Indonesia, the Philippines, Malaysia, New Zealand, Singapore, Thailand and Vietnam.
The club represents 40% of the world’s GDP and brings together 60% of the world’s population, and according to figures provided by the United States, it will become the largest contributor to global economic growth over the next three decades.
The members of the IPEF leave the door open to the adhesion of “additional partners from the Indo-Pacific who share their objectives, interests and ambitions for the region”, and are committed to “a flexible approach”
WHAT SPECIFIC MEASURES DOES IT INCLUDE?
The IPEF aspires to create “common standards” on trade and investment and to create “common crisis response mechanisms” such as that of semiconductors, among other areas of collaboration, and for the time being it does not contemplate the lifting of tariffs and other direct barriers to commercial exchanges between its members.
The four pillars of action of the framework will be commercial collaboration, guaranteeing stability in supply chains, development of clean energy and infrastructure, and tax and anti-corruption cooperation, and must be specified in measures yet to be defined.
Although the United States has achieved the participation of its main partners in the region and of most ASEAN countries, many observers point out that the lack of concrete measures -and in particular of tariff advantages- has made the plan less attractive and generated certain doubts among Your partners.
The Japanese Government itself has supported the US project but at the same time has insisted on its attempt to convince Washington to join the CPTPP, which brings together 13.4% of global GDP, while the Biden Administration does not seem willing to give reverse.
HOW IS IT DIFFERENT FROM OTHER SIMILAR FRAMEWORKS?
The IPEF was born as an intergovernmental agreement to which interested countries can join without the need for parliamentary ratification. This facilitates the incorporation of the Executives who wish it -even to only one of the four pillars of the framework-, but also makes its scope smaller and non-binding.
Japan is the only country that is at the center of the two major regional trade agreements in Asia, the CPTPP (also known as TPP11), and the RCEP, while South Korea is part of the second and has presented its candidacy to join the first.
The RCEP, sealed at the end of 2020, is the first multilateral free trade agreement to which Beijing joined, it includes 15 countries and represents 28% of world trade, which places it as the largest in the world in this type.
China also applied to join the CPTPP after the US withdrawal.although the power of influence of the Asian giant generates rejection in Japan and
other members of the agreement, in which Taiwan, the United Kingdom, Ecuador, Colombia and other countries in Southeast Asia have also shown interest.
In the midst of this complex battle of alliances that is brewing in the Asia-Pacific, it remains to be seen if the new US plan allows it to tilt the chessboard to its side in the region.
(EFE)