QUAD SUMMIT 2022: Indo-Pacific Economic Framework

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• During the Quad summit in Tokyo, Japan, the Indo-Pacific Economic Framework for prosperity was launched.

• IPEF is an economic initiative introduced by U.S. with a total of 13 members.

• It is not free trade agreement (FTA), rather a loose framework to shape the rules on key focus areas like digital economy, supply chains, clean energy, corporate accountability and anti-corruption.

3 Member countries

• QUAD countries – INDIA, U.S, JAPAN, AUSTRALIA

• ASEAN countries (Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam), South Korea and New Zealand.

• Along with QUAD members, 7 out of 10 ASEAN members, South Korea and New Zealand agreed to join the consultations.

4 Four pillars of IPEF

• Fair & resilient trade

• Supply-chain resilience-

• Clean energy, decarbonisation & infrastructure

• Taxation & anti-corruption

How do members participate?

• Under the four pillars, all the countries will negotiate and will list provisions under each pillar.

• The agreement will be finalized within 18 months.

• Framework is open to other countries willing to join provided they adhere to stipulated goals.

 Significance

Countering China: The grouping offers an economic cooperation alternative in contrast of groupings containing nationalistic, monopolistic and expantionist China.

Economic Cooperation & Integration: Cooperation in investment and technology development for clean energy can.

Opportunity for India: IPEF offers an opportunity for India to strengthen its goal in the Indo-Pacific.