Trade Update • Sept. 12, 2022 T
he United States hosted counterparts from the 13 Indo-Pacific Economic Framework for Prosperity (IPEF) partner countries (Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Viet Nam) – representing over 40% (including the U.S.) of the global economy, and 28% of global goods and services trade – at the first official in-person Ministerial meeting.
Since its launch in May launch, IPEF countries have engaged in intensive discussions to scope out each pillar of the Framework. At the conclusion of the Senior Officials and Ministerial meetings, the partners reached consensus on ministerial statements for each of the four IPEF pillars: Trade; Supply Chain; Clean Economy; and Fair Economy.
The Framework will advance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness for our economies. Through IPEF, the partners aim to contribute to cooperation, stability, prosperity, development, and peace within the region. The Framework will also offer tangible benefits that fuel economic activity and investment, promote sustainable and inclusive economic growth, and benefit workers and consumers across the region.
Pillar I (Trade)
IPEF partners will seek high-standard provisions in areas that are foundational to resilient, sustainable, and inclusive economic growth, including labor, environment, digital economy, agriculture, transparency and good regulatory practices, competition, inclusivity, trade facilitation, and technical assistance and economic development.
The United States and the IPEF partners will seek high-standard provisions that benefit workers and ensure free and fair trade that contributes to promoting sustainable and inclusive economic growth and that meaningfully contribute to environmental protection. We intend to advance inclusive digital trade by building an environment of trust and confidence in the digital economy, by addressing discriminatory practices, and by promoting trusted and secure cross-border data flows. We will seek to advance food security and sustainable agricultural practices and the benefits of good regulatory practices in supporting good governance and will work towards harnessing best practices with respect to facilitating trade.
Pillar II (Supply Chain)
The countries will seek to coordinate actions to mitigate and prevent future supply chain disruptions and secure critical sectors and key products for our manufacturers. The United States will work with IPEF partners to identify sectors and products critical to our national security, economic resilience, and the health and safety of our citizens – and then act collectively to increase the resilience of these sectors, creating jobs and economic opportunities in key industries of the future.
Partners will identify sole sources and choke points in critical supply chains, and work collaboratively to address them by promoting and supporting investments in new physical and digital infrastructure. Partners will use data to improve supply chain logistics and invest in new training and development opportunities to upskill workers and ensure that all citizens share in the benefits of increased supply chain resilience. Finally, the countries will seek to ensure that the work promotes the labor standards that underpin fair, sustainable, and resilient supply chains.
Pillar III (Clean Economy)
The countries will seek to expand investment opportunities, spur innovation, and improve the livelihoods of citizens as the partners unlock the region’s abundant clean energy resources and substantial carbon sequestration potential.
The partners aim to advance cooperation on clean energy and climate-friendly technologies, as well as mobilize investment and promote usage of low- and zero-emissions good and services. This work will be part of a future-oriented effort to enhance energy security and reduce overall greenhouse gas emissions. The partners seek to promote just transitions with the active participation of our stakeholders, including the private sector, workers, and local communities.
Pillar IV (Fair Economy)
The countries will seek to level the playing field for businesses and workers within partner countries by preventing and combatting corruption, curbing tax evasion, and enhancing transparency, recognizing the importance of fairness, inclusiveness, the rule of law, accountability and transparency. By innovating and strengthening shared approaches to implementing anticorruption and tax measures, the countries will seek to improve the investment climate and boost flows of commerce, trade, and investments among our economies while advancing a free, open, and prosperous Indo-Pacific region.
In May 2022, Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the United States, and Viet Nam began the process to establish the Indo-Pacific Economic Framework for Prosperity. Ambassador Tai and Secretary Raimondo held the first virtual Ministerial in May shortly after the official launch. They also held a virtual Ministerial in July, which reaffirmed their collective goal to pursue ongoing and intensified engagements with IPEF partner countries.