{"id":190041,"date":"2022-06-11T20:45:00","date_gmt":"2022-06-11T15:15:00","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=190041"},"modified":"2022-06-11T20:45:47","modified_gmt":"2022-06-11T15:15:47","slug":"what-ipef-offers-india-opportunities-tough-negotiations","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/what-ipef-offers-india-opportunities-tough-negotiations\/","title":{"rendered":"What IPEF offers India: Opportunities, tough negotiations"},"content":{"rendered":"\n

News:<\/strong> Recently, the US Administration launched\u00a0the Indo-Pacific Economic Framework<\/strong> (IPEF)<\/strong> as its de facto foreign economic policy for Asia<\/p>\n

Features<\/strong><\/h5>\n

It empowers the US administration to shape rules across several critical pillars that will condition America\u2019s economic engagement<\/strong> in the Indo-Pacific amid competing with the Chinese BRI.<\/p>\n

What is the importance of the IPEF?<\/strong><\/h5>\n

Overall<\/strong><\/p>\n

It aims to address constraints that have been caused by\u00a0Covid-19, inflation and supply chain shocks, and devise new standards.<\/p>\n

It is the first multilateral attempt<\/strong> to boost supply chain resilience, <\/strong>to ease global inflationary pressures and mitigate effects of future disruptions in key raw materials, critical minerals, and semiconductors.<\/p>\n

It will negotiate \u201chigh-standard<\/strong>\u201d rules to govern the digital economy<\/strong>, climate mitigation<\/strong>, workers empowerment, equitable global tax, anti-money laundering and anti-bribery provisions.<\/p>\n

It is the economic agenda of the US, to protect and prolong America\u2019s economic leadership across Asia.<\/p>\n

For the US<\/strong><\/h5>\n

It will service the domestic economic agenda<\/strong> of the US through 21st century economic arrangement. It is aimed to retain America\u2019s technological primacy.<\/strong><\/p>\n

It will deal with issues like climate change, tax evasion, worker rights, labour rights, productivity. This will be done using market incentives<\/strong> and fiscal spending<\/strong>. It will be aimed to reduce inequality, deter environmental damage, foster digital openness and connectivity, and expand tax compliance.<\/p>\n

Importance for India<\/strong><\/h5>\n

It is flexible and is open in nature. The US and India can jointly shape the rules governing the Indo-Pacific\u2019s economic future.<\/strong><\/p>\n

It can counter China which is spreading its economic footprint across Asia. It is proposed as an alternative economic paradigm that emphasises openness, flexibility, and integration.<\/p>\n

What are the challenges for other member countries, including India?<\/strong><\/p>\n

There are doubts over whether the US administration could sustain<\/strong> its focus in Asia as war broke out in Europe.<\/p>\n

The IPEF is not<\/strong> a trade<\/strong> or investment<\/strong> agreement<\/strong>. It\u2019s a framework to regulate trade and commerce across four key pillars<\/strong>: Digital economy, supply chains, clean energy, and governance.<\/p>\n

It can impact the signatories on how they will regulate their domestic economies<\/strong>. For example, the signatory will have to internalize the standards domestically.<\/p>\n

It will facilitate US MNCs\u2019<\/strong> access to Asian economies at the expense of domestic preferences.<\/p>\n

The IPEF\u2019s pillars could clash with and supersede the member countries\u2019 policy preferences <\/strong>on such issues. For example,<\/p>\n

(1) Proposed free and open data flows<\/strong> will impact India\u2019s interest to regulate data for domestic purposes. India has been working on data protection legislation<\/strong> in the last few years.<\/p>\n

(2) The Indian government is not open to sync its tax policies with the US Proposal of global tax standard to mitigate tax avoidance and evasion.<\/p>\n

The IPEF does not grant market access <\/strong>to the United States or include tariff reduction provisions<\/strong>.<\/p>\n

Way Forward<\/strong><\/h5>\n

The IPEF modalities has to be negotiated amongst partners that share interests and some values.<\/p>\n

Source<\/strong>: The post is based on an article \u201cWhat IPEF offers India: Opportunities, tough negotiations<\/strong>\u201d published in the Indian Express<\/strong> on 11th<\/sup> June 2022<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

News: Recently, the US Administration launched\u00a0the Indo-Pacific Economic Framework (IPEF) as its de facto foreign economic policy for Asia Features It empowers the US administration to shape rules across several critical pillars that will condition America\u2019s economic engagement in the Indo-Pacific amid competing with the Chinese BRI. What is the importance of the IPEF? Overall… Continue reading What IPEF offers India: Opportunities, tough negotiations<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10500],"class_list":["post-190041","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704941207},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/190041","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=190041"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/190041\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=190041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=190041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=190041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}