Prelims – INTERNATIONAL
Context: India signed the US-led 14-member Indo-Pacific Economic Framework for Prosperity (IPEF) bloc’s agreements on a clean and fair economy.
Background:
Agreement on clean economy intends to accelerate efforts of IPEF partners towards energy security, GHG emissions mitigation, developing innovative ways of reducing dependence on fossil fuel and promoting technical cooperation. Agreement on fair economy intends to create transparent and predictable business environment, which can spur greater trade and investment in member countries.
About Indo-Pacific Economic Framework for Prosperity (IPEF)
The Indo-Pacific Economic Framework for Prosperity (IPEF) is a strategic initiative led by the United States, launched in May 2022, to enhance economic cooperation and strengthen economic ties in the Indo-Pacific region.
It is seen as a response to growing geopolitical competition in the region, especially concerning China’s influence, and aims to foster a rules-based economic order.
IPEF is based on four key pillars, each addressing critical aspects of economic growth and sustainability:
Trade (connected economy):
Focus on creating high-standard trade agreements, particularly in the areas of digital economy, labor standards, and trade facilitation.
Prioritizes inclusive trade that benefits all member countries, with an emphasis on labor rights, transparency, and environmental sustainability.
Supply Chain Resilience (Resilient Economy):
Enhances the resilience and reliability of supply chains in the Indo-Pacific.
Seeks to address supply chain vulnerabilities, ensuring critical goods flow smoothly across borders, even during crises.
Clean Economy:
Promotes cooperation on green energy, clean technology, and sustainable infrastructure development.
Supports initiatives to address climate change by driving the adoption of renewable energy sources and building eco-friendly infrastructure.
Fair Economy:
Aims to foster fair and transparent tax systems.
Seeks to combat corruption by enhancing anti-money laundering measures and promoting financial transparency across member nations.
Member Countries:
IPEF includes 14 member countries, representing a diverse group from across the Indo-Pacific region.They are Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States, and Vietnam.
