Biden's Asia Trade Pact |
| Credit: Medpage Today |
INTRODUCTION
• On Asia trade, President Joe Biden faced an interesting conundrum
• He couldn't just rejoin the Trans-Pacific Partnership, which his predecessor had withdrawn the US out of in 2017
• The US announced the countries that will join the new Indo-Pacific Economic Framework during Biden's visit to Tokyo on Monday
• It is best recognised by its initials: IPEF, in the tradition of trade agreements
INITIAL MEMBERS
• Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam
• These are among the 13 members of the framework which together accounts for 40% of the world GDP
• As per the White House IPEF will be an open platform
• However, the Chinese government expressed concerns that anyone could become an "exclusive" clique, causing more instability in the region
ROLE OF IPEF
• In a broad sense, IPEF is a mean for the US to put down a marker indicating its determination to remain a dominant player in Asia
• It would entail establishing norms and rules, particularly in emerging areas such as the digital economy, and attempting to maintain secure and robust supply chains
• It would be focused around the integration of Indo-Pacific economies
• The concept of new global trade rules stems from the impact of pandemic on the global supply chain and raising worldwide inflation
• These flaws were highlighted in late February when Russian President Vladimir Putin authorised the invasion of Ukraine
• This resulted in dangerously high increases in food and energy prices around the world
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