Indo – Asia Pacific Benefith Agreement Issue

US President Joe Biden officially announced the Indo-Pacific Economic Framework (IPEF) during his first trip to Asia this week, announcing Washington’s long-awaited Asia-Pacific economic strategy. Five years have passed since the United States unilaterally withdrew from the Trans-Pacific Partnership Agreement.

It is a trade agreement signed by 12 countries in Asia Pacific, North America and South America. With the United States withdrawing, other countries have launched the CPTPP, or the Comprehensive and Progressive Trans-Pacific Partnership Agreement. It is one of the largest multilateral trade agreements in the world and has been requested by China.

For the sake of clarity, we will continue to discuss the specific requirements and details of the framework. But for beginners, here are the four main principles of the framework:

  • A Connected Economy: Higher Standards and Rules for Digital Trading B. Cross-border data flows. 
  • Resilient Economy: A resilient supply chain that can withstand unexpected shocks such as a pandemic. 
  • Clean Economy: Green energy initiatives and collaboration with projects. 
  • Fair -Economy: Implementation of fair trade, including effective anti-corruption and taxation rules. 

Bryan Mercurio, international trade expert and professor of law at the Chinese University of Hong Kong, said: Since then, the United States has been exacerbated by the trade war with China and has been far beyond the region. But IPEF has broken the ice. However, analysts and observers say the deal lacks “tooth” and is more symbolic than effective or tangible policies. Seen as a means to counter China in the region, it is a US-led framework for participating countries to strengthen their ties and engage on important economic and trade issues of regional concern, such as building resilient supply chains hit by the pandemic. 

This is not a free trade agreement. No market access or tariff reductions have been outlined, although experts say it could pave the way for a trade deal. “I think President Biden is, unfortunately, indicating that it shouldn’t be considered the start of a trade agreement,” David Adelman, managing director of Krane Funds Advisors and former US ambassador to Singapore.. 

Nor is it a security pact, unlike the four-nation Quad group, which consists of Australia, India, Japan and the US. For starters, the US will partner with the initial 12 countries that include the Quad members: Australia, India and Japan. It also includes seven ASEAN countries such as Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, as well as South Korea and New Zealand.

Washington said the framework was open to new entrants. “This is a large group of countries, but it’s important to remember that this is really a framework, not a policy change or breakthrough in Pacific trade,” Adelman said. “The future of the economy in the 21st century is written primarily in the Indo-Pacific, our region,” Biden said this week. 

The total GDP of participating countries accounts for 40% of world GDP. According to the Biden administration, about 60% of the world’s population lives in the Indo-Pacific, and the region is expected to make the largest contribution to global growth over the next 30 years.

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The US wants to restore its economic leadership in the region and “present the Indo-Pacific countries as an alternative to China’s approach,” said Commerce Secretary Gina Raimondo.

US national security adviser Jake Sullivan also said the framework was a means for the US to “strengthen ties with allies and partners for the purpose of promoting shared prosperity.” But analysts said it was “more marketing than policy.”

“The good news is, the US is actively engaged in trade in Asia and is using its power to bring these 12 important economies together, now the bad news is, there’s really no gear in this,” Adelman said.

One of the most important things is the flow of trade because it is hard to deny that the United States still has a big mouth for the flow of the modern economy. Indo-Pacific partners need someone who can lead our region for the better. When you think about luck, every country wants to be a country that can do more than any other country. But fights and hostilities are another option.

In history, America has never set foot in an Indo-Pacific country with direct negative tendencies except Vietnam, and America has not had any ideological tendencies with any Indo-Pacific country. History records America has a poor track record with China, Japan, and Russia but now has good and mutually beneficial cooperation but what about asia pacific ?

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