Recently, the Minister of Commerce & Industry addressed the Indo-Pacific Economic Framework (IPEF) Ministerial meeting in the US, where India decided to stay away from the Fair & resilient trade Pillar.
- India agreed to three out of four pillars, which are Supply Chains, Tax & Anti-Corruption and Clean Energy.
What is IPEF?
The Indo-Pacific Economic Framework (IPEF) is the collaboration of participating countries to strengthen economic partnerships.
What is the Aim of IPEF?
to contribute to cooperation, stability, prosperity, development, and peace within the region.
The Four Pillars of IPEF
Indo-Pacific Economic Corridor’s (IPEF) framework broadly rests on four pillars:
- Supply Chain Resilience Pillar
- Trade Pillar
- Clean Energy and Decarbonisation Pillar
- Taxes and Anti-Corruption Pillar
How is IPEF Different from Other Trade Deals?
- The IPEF is not exactly a trade pact and the provision of multiple pillars does entail an option for participants to choose what they want to be a part of.
- It’s not a take-it-or-leave-it arrangement, like most multilateral trade deals are.
- The IPEF is not a regular trade pact, the members so far are not obligated by all the four pillars despite being signatories.
- So, while staying off the trade part of the arrangement, India has joined the other three pillars of the multilateral arrangement – supply chains, tax and anti-corruption and clean enerrgy.
What is India’s Vision for the Indo-Pacific Region?
- India’s trade in this region is growing rapidly, with overseas investments being directed towards the East, e.g., the Comprehensive Economic Partnership Agreements with Japan, South Korea, and Singapore, and the Free Trade Agreements with ASEAN (Association of Southeast Asian Nations) and Thailand.
- India has been active in championing a Free and Open Indo-Pacific. The US, Australia, and the members of the ASEAN have all expressed a common view that India plays a greater role in the region.
- India, along with its Quad partners, is improving its game in the Indo-Pacific.
- India’s view is to work with other like-minded countries in the Indo-Pacific region to cooperatively manage a rules-based multipolar regional order and prevent any single power from dominating the region or its waterways.
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