INDO-PACIFIC ECONOMIC FRAMEWORK (Syllabus: GS Paper 2 – IR)

Context: India is expected to sign a much-awaited deal on two more pillars of the US-led Indo-Pacific Economic Framework (IPEF)—clean economy and fair economy.

Indo-Pacific Economic Framework (IPEF)

• About: The Indo-Pacific Economic Framework is a unique type of trade pact that the United States is pushing among the region’s governments.
• Origin: India and 12 nations led by the United States inaugurated the Indo-Pacific Economic Framework (IPEF) on 23rd May 2022 to provide an economic alternate solution to China’s Geostrategic footprint in the Indo-Pacific area. 
• Partner Countries: Australia, Brunei, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Vietnam and the United States. 

oWithin days of its launch, IPEF expanded its membership to the Pacific Island states, with Fiji joining the initiative.

• Objectives: The IPEF seeks to strengthen economic relationships between all of the participating nations to enhance resilience, sustainable development, inclusiveness, economic expansion, fair treatment, and competitive spirit in the Indo-Pacific region.
• Pillars: It was proposed as an elaborate framework of rules covering four pillars, namely, fair and resilient trade, supply chain resiliency, clean energy decarbonisation, and tax and anti-corruption.