INDO-PACIFIC ECONOMIC FRAMEWORK (Syllabus: GS Paper 3 – Economy)

Context: India, along with 13 other nations under the US-initiated Indo-Pacific Economic Framework (IPEF), is likely to substantially close discussions on two more pillars – clean and fair economy – during the upcoming ministerial slated to take place in San Francisco next week.

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. 

o Within 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 decarbonization, and tax and anti-corruption.