{"id":205244,"date":"2022-09-09T19:49:10","date_gmt":"2022-09-09T14:19:10","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=205244"},"modified":"2022-09-09T19:49:10","modified_gmt":"2022-09-09T14:19:10","slug":"indo-pacific-economic-framework-challenges-and-opportunities","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/indo-pacific-economic-framework-challenges-and-opportunities\/","title":{"rendered":"Indo-Pacific EConomic Framework: Challenges and Opportunities"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cIndo-Pacific Economic Framework: Challenges and Opportunities\u201d <\/strong>published in The Business Standard <\/strong>on 9th September 2022<\/strong>.<\/p>\n

Syllabus: <\/strong>GS2- Bilateral regional and global grouping<\/p>\n

News: <\/strong>The article explains challenges are opportunities presented by the Indo-Pacific Economic framework<\/strong> and what should be India negotiating strategy for IPEF<\/strong>.<\/p>\n

The USA is hosting the first in-person meeting of the grouping on 8-9 September in Los Angeles. The formal launch of rule-setting for the group is expected at this meeting.<\/p>\n

Indian earlier participated in its meetings as an \u201cobserver\u201d.<\/strong><\/p>\n

What are specific features of IPEF when compared with mega regional trade agreements?<\/strong><\/h5>\n

It is not an alternative to RCEP<\/strong> and Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). <\/strong>IPEF has a trade pillar but it is not a trade agreement.<\/p>\n

Trans-Pacific Partnership, which<\/strong> seems to be a subset of CPTPP, was an economic instrument as part of the USA\u2019s \u201cPivot to Asia\u201d<\/strong> strategy for containing China. Its WTO++<\/strong> provisions related to IPR;<\/strong> state-owned enterprises was to establish a rule-based world order<\/strong> that China will find difficult to abide by.<\/p>\n

CPTPP<\/strong> is a water-down provision of TPP<\/strong> with relaxed provisions related to investment, labor, and environmental standards to make it for China easier to seek its membership.<\/p>\n

Membership of both RCEP<\/strong> and CPTPP<\/strong> will give China a dominant position in rule setting. This is the reason behind IPEF <\/strong>gaining salience by excluding China.<\/p>\n

What are the opportunities provided by IPEF for India?<\/strong><\/h5>\n

First, <\/strong>it has nine members from East Asia and its two pillars are focused on trade and connectivity <\/strong>and supply chain resilience<\/strong>. It provides an opportunity to integrate with East Asian value chain hubs<\/strong>.<\/p>\n

Second<\/strong>, In the post-pandemic era<\/strong> and in the wake of the Ukraine crisis<\/strong>, large corporations are seeking China plus one relocation strategy<\/strong>.<\/p>\n

Third, ASEAN<\/strong> is also looking for supply chain resilience<\/strong> through bilateral FTAs and diversification beyond RCEP<\/strong>.<\/p>\n

Fourth, <\/strong>it provides a flexible framework to seek remedial action against non-tariff barriers<\/strong> in the context of the ASEAN-India FTA<\/strong>.<\/p>\n

What are the challenges for India?<\/strong><\/h5>\n

First<\/strong>, it does not include tariff preferences and there is less scope for India to have enhanced market access<\/strong>.<\/p>\n

Second<\/strong>, it may have deliberately designed to have focus on modern day provision related to digital trade, regulatory policies, trade facilitation, labour and environmental standards and sustainable social development <\/strong>similar to US-Mexico Canada agreement. <\/strong>These rules are not in confirmation with India negotiating position on trade agreements.<\/p>\n

Third, trade facilitation rules<\/strong> are likely to be drawn from Asia-Pacific Economic Cooperation <\/strong>rules. All members of IPEF<\/strong> are also APEC<\/strong> members and they have reached consensus on modern day provision related to trade facilitation at APEC<\/strong> summit in 2017. Almost all of them have unleashed domestic reforms. India will have to overcome these challenges.<\/p>\n

How can India deal with these challenges?<\/strong><\/h5>\n

India is in the midst of advanced negotiation on a free trade agreement with the EU <\/strong>and Australia.<\/p>\n

The EU<\/strong> is providing leadership in concluding free trade agreements with emphasis on provisions like labour and environmental standards<\/strong>.<\/p>\n

Australia is a founding and leading member of the APEC and has<\/strong> been acknowledged for its contribution to trade and investment facilitation<\/strong> and establishing regulatory ease<\/strong> for cross-border supply chains.<\/p>\n

India’s ability to conclude FTA with these countries will help in unleashing domestic reforms and signaling mechanisms to the world of its readiness to be part of IPEF<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cIndo-Pacific Economic Framework: Challenges and Opportunities\u201d published in The Business Standard on 9th September 2022. Syllabus: GS2- Bilateral regional and global grouping News: The article explains challenges are opportunities presented by the Indo-Pacific Economic framework and what should be India negotiating strategy for IPEF. The USA is… Continue reading Indo-Pacific EConomic Framework: Challenges and Opportunities<\/span><\/a><\/p>\n","protected":false},"author":10320,"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":[10503,212],"class_list":["post-205244","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-2","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/205244","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\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=205244"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/205244\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=205244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=205244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=205244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}