With the launch of the Indo-Pacific Economic Framework (IPEF), partner countries are likely to commence discussions focussed on strengthening the broader mandate of “economic cooperation” and “achieving shared goals” in the coming weeks. In comparison to trade blocs, it is unlikely that IPEF members would attempt negotiation on tariffs or market access, instead focussing initially on improving synergies in four specific areas: digital economy, supply chains, clean energy infrastructure, and anti-corruption measures. Buy Now | Our best subscription plan now has a special price Experts noted that the framework might emerge as an eventual alternative to the Regional Comprehensive Economic Partnership (RCEP), which notably includes China. In 2019, India had pulled out of the RCEP, citing concerns about a potential surge in imports from China under the regional pact. Apart from India and the US, all the 11 other members of IPEF are members of RCEP. While the IPEF does not currently address increased market access for trade between member countries, it is aimed at increasing regulatory coherence between these nations, an expert said. The framework is aimed at enhancing cooperation between these countries to strengthen supply chains, increase regulatory coherence, and improve coordination on climate action and anti-corruption efforts. US President Joe Biden had first mentioned the IPEF at the October 2021 East Asia Summit and Washington is projecting the platform as the new US vehicle for re-engagement with East Asia and Southeast Asia. This also comes in the backdrop of Indian exporters having benefited from a move by the US and the EU to de-risk supply chains by reducing their reliance on China for essential imports. India may, however, have to diplomatically navigate key issues that the US is aiming to address through the IEPF, according to experts. “In terms of specific commitments which could be brought in, it is clearly US-led and is going to be shepherded by the US “, said Biswajit Dhar, professor of economics at Jawaharlal Nehru University. He added India would need to look at its stance on discussing issues such as e-commerce and data localisation, which the US is aiming to address through the framework. India has so far declined to enter discussions on multilateral rules for e-commerce and its data localisation requirements have been criticised by the US as barriers to digital trade. Dhar added while the US has also previously spoken about reducing reliance on China, not much has changed on the ground.
