Indo-Pacific Economic Framework for Prosperity
Indo-Pacific Economic Framework for Prosperity
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For Prelims: About Indo-Pacific Economic Framework for Prosperity, India and IPEF |
Why in the news?
Recently, the Union Minister of Commerce & Industry joined the Indo-Pacific Economic Framework for Prosperity (IPEF) Virtual Ministerial Meeting.
About Indo-Pacific Economic Framework for Prosperity:
- It is a regional arrangement to build cooperation and economic integration in the Indo-Pacific region. It was launched in May 2022.
- It is intended to advance resilience, sustainability, inclusiveness, economic growth, fairness and competitiveness for member economies.
- It will seek to complement and build on existing regional architecture and support the global rules-based trading system.
- Member countries: It has 14 regional partners – Australia, Brunei, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the United States and Vietnam.
- The economic framework broadly rests on four pillars: Trade, Supply chain resilience, Clean Energy, Decarbonization, and Infrastructure Taxes and anti-corruption measures
- The IPEF is not a Free Trade Agreement (FTA), but it allows members to negotiate the parts they want to.
India and IPEF:
- India has been actively participating in the IPEF, but not in all pillars.
- India has decided to opt out of the trade pillar of the IPEF as most issues promoted by the IPEF do not align with India's trade policies.
Source: PIB