VOA: Biden Launches Indo-Pacific Economic Framework

Today India joins 11 nations in another US-led China-centric group #IndoPacificEconomicFramework pic.twitter.com/mYetM1yI3y

— OsintTv? (@OsintTv) May 23, 2022

COGwriter

The Biden Administration is hoping its new proposal will increase USA influence, while decreasing that of China in the Asia-Pacific region:

Biden Launches Indo-Pacific Economic Framework

May 23, 2022

TOKYO —

U.S. President Joe Biden announced on Monday the launch of the Indo-Pacific Economic Framework (IPEF), which includes a dozen Indo-Pacific countries and is designed to provide a counterweight against Chinese economic clout in the region.

“The future of the 21^st Century economy is going to largely be written in the Indo-Pacific — in our region,” Biden said during IPEF’s launch event. “We’re writing the new rules.”

The countries joining the launch are Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam. Biden was joined in person by Japanese Prime Minister Fumio Kishida and Indian Prime Minister Narendra Modi at the launch event in Tokyo, and virtually by the others.

IPEF is seen as a key step in the U.S. effort to re-engage Indo-Pacific nations on trade more than five years after the U.S. withdrew from a regional comprehensive trade pact, the Trans-Pacific Partnership known as TPP.

“The Indo-Pacific Economic Framework is part of President Biden’s commitment to putting American families and workers in the center of economic and foreign policy, while strengthening our ties with allies and partners for the purpose of increasing shared prosperity and for the purpose of defining the coming decades for technological innovation in the global economy,” U.S. National Security Advisor Jake Sullivan told reporters Sunday.

The group represents 40% of the world GDP, Sullivan said, adding that other countries could join in the future.

There are no market access or tariff reduction provisions in the framework, as there are in previous free trade agreements — trade incentives that countries in the region desire. Even as Japan said it welcomes IPEF, it is signaling that it wants more.

“Japan welcomes the launch of the Indo-Pacific economic framework, IPEF, by President Biden and will participate and cooperate in this initiative,” said Kishida in his joint press conference with Biden earlier Monday. “Regarding the TPP, we are truly hoping for a return of the United States.”

Former President Barack Obama in 2016 signed on to the Trans-Pacific Partnership (TPP). Former President Donald Trump withdrew from it a year later and the deal eventually became CPTPP — an 11-country bloc that now constitutes one of the largest free-trade areas in the world.

IPEF is centered around four “pillars” — Connected Economy, Resilient Economy, Clean Economy, and Fair Economy. Signees can pick and choose among the four. The design, Sullivan said, has “flexibility” and “creativity” to accommodate the “diverse range of countries.”

Administration officials are touting the initiative as “the most significant international economic engagement that the United States has ever had in this region.” Its launch “marks an important turning point in restoring U.S. economic leadership in the region and presenting Indo-Pacific countries alternatives to China’s approach to these critical issues,” Secretary of Commerce Gina Raimondo told reporters.

However, beyond the brief fact sheet released by the White House, much is still unknown about the initiative that represents the economic leg of Washington’s broader Indo-Pacific Strategy. https://www.voanews.com/a/biden-launches-indo-pacific-economic-framework-/6585160.html

While China will have problems, USA hopes that this arrangement will greatly counter China’s influence, is mainly a pipe dream.

Furthermore, consider that India has openly, and repeatedly, ignored/violated USA sanctions related to Iran and Russia. India will give the USA a chance to explain its position, but historically has looked at what it considers to be in its best interest.

So, I do not see this as a way to greatly increase USA influence.

The USA is also unable to compete well with China on the production of many items, and if the USA does not have enough items that other nations want, this also will not restore jobs and economic growth to the USA.

That being said, trade cooperation should be good for all involved–though it does not always work out that way.

Trade agreements often result in trade conflicts.

This will not end well for those in this agreement such as the USA, Australia, and New Zealand.

Some items of possibly related interest may include:

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