Following the change in the US-led Indo-Pacific Economic Framework (IPEF); Prime Minister Narendra Modi joined US President Joe Biden at the official inauguration in Tokyo on Monday.
Countries including Brunei, Japan, Australia, Indonesia, South Korea, Malaysia, New Zealand, Vietnam, Thailand, Singapore and the Philippines have made India one of the thirteen countries to be the primary partner of IPEF, representing about 40 percent of the world’s GDP.
During the inauguration, Prime Minister Modi, US President Joseph R. Biden, and Japanese Prime Minister Kishida Fumio were present in person, and leaders of the partner countries were in attendance.
A joint statement issued at the end of the launch highlights the key elements of the IPEF, which seeks economic growth, fairness, sustainability, inclusion and competitiveness in the Indo-Pacific region.
Prime Minister Modi emphasized the importance of 3T – trust, transparency and timeliness
Expressing India’s commitment to work with all Indo-Pacific countries for an IPEF that is both inclusive and flexible, Prime Minister Modi said at the launch that the focus should be on resilient supply chains – trust, transparency and punctuality.
Historically, India has been at the center of trade flows in the Indo-Pacific region, and the IPEF Hall has declared its shared desire to build the region as an engine of global economic growth, Prime Minister Modi said at the inauguration.
To address the economic challenges in the Indo-Pacific region, Prime Minister Modi has called for creative and common solutions, adding that Gujarat, the world’s oldest commercial port, is under iron ore.
For continued peace, growth and prosperity, India is committed to deepening economic engagement between a free, open, and inclusive Indo-Pacific region and partners.
And towards regional economic connectivity, improving trade and investment and integration in the region, India is keen to collaborate with partner countries under the IPEF.
With the launch of this framework, all partner countries are expected to begin negotiations that will focus on economic cooperation and the achievement of shared goals.
According to the report, before joining the launch, India informed the United States that the IPEF should be tweaked to give a universally clear vision of a free, open and inclusive Indo-Pacific region.
An official statement issued by the White House today said the IPEF, launched today, is expected to strengthen US ties in the region and define the coming decades for technological innovation and the global economy. This will create a stronger, more resilient economy not only in the United States but also in the Indo-Pacific region for families, businesses and workers.
The statement said the IPEF would enable the US and its allies to decide on road rules that would ensure that American workers, ranchers and small businesses could compete in the Indo-Pacific region.
Since tackling inflation is a top economic priority, the US president has said the structure will help reduce costs and make it more resilient in the long run to the supply chain.
In the next 30 years, the Indo-Pacific region is expected to be the largest contributor to the global economy, with about 60 percent of the world’s population.
More about IPEF
According to a fact sheet issued by the White House, the IPEF is going to focus on four main pillars.
There will be wide-ranging engagement between the United States and its partners on a wide range of issues. The digital economy will follow high-quality road rules, and will include cross-border data flow and data localization standards.
To ensure that small and medium enterprises can benefit from the region’s fast-growing e-commerce sector, efforts will be made to seize opportunities and address concerns in the digital economy.
Problems will be addressed, including the unethical use of artificial intelligence, and online privacy to find strong labor and environmental standards.
Also, the provision of corporate accountability which will help the nation to rise to the top.
With American families in mind, the focus for a resilient economy is going to be their first-of-its-kind supply chain commitment that will prevent supply chain disruptions and keep prices from rising.
Under this framework an initial precautionary measure, critical mineral supply chain mapping will be established as well as diversification efforts will be coordinated and traceability in key sectors will be improved.
Commitment to decarbonization, infrastructure and clean energy that promotes good paying jobs.
Targets that will accelerate efforts to address the climate crisis and take new measures to address methane emissions. Focus on carbon removal, energy efficiency standards and renewable energy.
For a fair economy, the framework speaks to the commitment to implement and enforce tax, anti-money laundering, and anti-bribery measures.
According to UN standards, the provision of tax information exchange, criminalization of bribes.