08-06-2022 | 15:45 PM
QUAD SUMMIT 2022: Indo-Pacific Economic Framework
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.
