IPEF

 The Indo Pacific Economic framework (IPEF) has been launched by the USA at the recent QUAD meeting in Tokyo joined by other QUAD members namely India, Japan and Australia apart from South Korea and 8 other East Asian countries outside QUAD  for prosperity of the region has attracted much attention. India became one important member of the 13 nation economic initiative to strengthen economic partnership among participating nations to enhance resilience, sustainability, inclusiveness, economic growth, fairness and competitiveness in the Indo pacific region.IPEF desires to make  the Indo pacific region an engine of  global  growth. Unlike traditional Free Trade Agreements IPEF won't negotiate tariff or market access and the framework will focus on integrating partner countries broadly focusing in following four pillars.

1.Trade.  In trade it intends to build  high standards,inclusive, free and fair trade commitment and develop new creative approaches in trade and technology policy. IPEF advances  a broad set of objectives that boost economic activity and investment, promote sustainable and inclusive economic growth and benefits workers and consumers. 

2.Supply Chains.IPEF is committed to ensuring transparency, diversity, security and sustainability in supply chains to make them more resilient and well integrated. To coordinate crisis response measures, expand cooperation ,prepare and mitigate the effects of disruptions and better ensure business commitments, improve logistical efficiency and support and ensure access to key raw and processed materials, semiconductors, critical minerals and most importantly clean energy technology

3. Clean energy decarbonisation and infrastructure. In line with the Paris Agreement goals and efforts to support the livelihood of the people and workers, it plans to accelerate development and deployment of clean energy technologies to decarbonise our economies and build resilience to climate impacts. This involves deepening cooperation on technologies, on mobilising resources, including confessional finance and on settling ways to improve competitiveness and enhance connectivity by supporting sustainable development, providing technical assistance and durable infrastructure.

4.Tax and Anti corruption. IPEF is committed to promoting fair competition by enhancing and enforcing effective and robust tax,anti money laundering and anti bribery regimes in line with existing multilateral obligations, standards and agreements to curb tax evasion and corruption in the Indo pacific region. This involves sharing expertise and seeking ways to assist capacity building necessary to advance accountable and transparent system. 

The above four pillars draw the question whether there is enough common ground among 13 countries that are part of very different economic arrangements individually. Although it would be highly desirable to evolve agreed set of rules that could be applied to IPEF members,there are many contentious issues including transparency, the requirements of fair competition in a world dominated by fast players and the ownership localisation of personal data.For instance Indian business  needs to be mobilised in support of the new integration.It has been observed that Indian negotiators must take appropriate feed back from different ministries and we need an empowered trade negotiator to consult with commerce and other ministries and report the terms of negotiations accordingly.

Immediate focus of IPEF on common standards which could form the basis for deeper integration in the future will cover labour rights, environmental standards, protection of intellectual property rights ((IPR) and rules managing digital economy.The Indo Pacific partnership for maritime domain awareness (IPDMA) plans to use satellite imagery and technology to combat  illegal fishing and "dubious operations" of China. China makes attempt to policing and security cooperation in many Pacific island nations through it's infrastructure and aid policies. According to China IPEF initiative is largely an attempt to counter growing Chinese influence in the Indo Pacific region and may decouple countries from Chinese economy. Building reliable supply chains is an integral part of IPEF agenda for which we have to attract large scale private and foreign investment.Digital trade and e - commerce is another critical area where India has got comparative advantage in software development and application  which can be optimally utilised.

Some observed that IPEF deal is more symbolic and lacks "teeth"and less effective as real policy since it is not a free trade agreement with market access or tariff reductions.It is a means to counter China ln Indo Pacific region and to build crucial economic and trade matters that concern the region, such as building resilient supply chain, clean, fair and connected economy.The IPEF is expected to serve as a middle ground of US plans for control of economic flows in the Indo Pacific with China at the centre of the region's supply chains.In other words the framework is an economic alliance to counter the emergence of China in the Indo Pacific region.