In a significant development for regional economic collaboration, the third Indo-Pacific Economic Framework for Prosperity (IPEF) Ministerial Meeting, hosted by the United States in San Francisco, marked the signing of the IPEF Supply Chain Agreement by the 14 partner countries. This pivotal meeting, attended by Union Minister Piyush Goyal, represents a substantial step forward in strengthening economic ties and promoting growth in the Indo-Pacific region.
The IPEF, initially launched in Tokyo on May 23, 2022, includes 14 partner nations: Australia, Brunei, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, Vietnam, and the USA. The framework aims to enhance economic engagement among these countries, fostering a shared vision of growth, peace, and prosperity. The IPEF is structured into four key pillars: Trade, Supply Chains, Clean Economy, and Fair Economy. India is actively participating in the latter three pillars while maintaining observer status in the Trade pillar.
Progress in Pillar Negotiations and Supply Chain Agreement
At the San Francisco meeting, significant advancements were made in negotiations under Pillar III (Clean Economy) and Pillar IV (Fair Economy), along with the Indo-Pacific Economic Framework for Prosperity Agreement. This agreement establishes a ministerial-level council and a commission to further the framework’s objectives. The IPEF Supply Chain Agreement, concluded in May 2023, was officially signed, marking a milestone in enhancing regional supply chain resilience and stability.
Under Pillar III, the IPEF partners are committed to advancing cooperation in research, development, and deployment of clean energy and climate-friendly technologies. Shri Piyush Goyal emphasized the importance of collaborative efforts in innovative and affordable climate-friendly technologies, including a focus on hydrogen supply chains and proposals for biofuels and e-waste recycling.
Pillar IV aims to reinforce effective anti-corruption and tax measures to boost commerce, trade, and investment. Shri Goyal highlighted the benefits of enhanced information sharing, asset recovery facilitation, and strengthened cross-border investigations to combat corruption, money laundering, and terror financing.
The IPEF Ministerial Meeting in San Francisco sets a new benchmark in regional economic cooperation. The signed agreements and concluded negotiations under various pillars of the IPEF manifest a collective commitment to building a robust, clean, and fair economic environment in the Indo-Pacific. The proactive participation and proposals from India showcase its dedication to playing a pivotal role in shaping the economic landscape of the region. As these initiatives move towards implementation, the Indo-Pacific region stands on the cusp of a new era of economic prosperity and sustainable development.
