{"id":242427,"date":"2023-05-15T20:12:41","date_gmt":"2023-05-15T14:42:41","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=242427"},"modified":"2023-05-15T20:12:41","modified_gmt":"2023-05-15T14:42:41","slug":"this-strategic-economic-bloc-will-only-tighten-the-leash","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/this-strategic-economic-bloc-will-only-tighten-the-leash\/","title":{"rendered":"This strategic-economic bloc will only tighten the leash"},"content":{"rendered":"\n

Source-<\/strong> The post is based on the article \u201cThis strategic-economic bloc will only tighten the leash\u201d published in \u201cThe Hindu\u201d on 15th May 2023.<\/p>\n

Syllabus: <\/strong>GS2- International relations<\/p>\n

News- <\/strong>India is negotiating the U.S.-driven Indo-Pacific Economic Framework for Prosperity (IPEF).<\/p>\n

Why is India prioritising free trade bloc that include the US rather than China?<\/strong><\/h2>\n

The one clear difference is China versus the U.S.<\/strong> India\u2019s top foreign policy priority<\/strong> is developing a strategic partnership<\/strong> with the US. Its relationship with China has further deteriorated.<\/p>\n

The big economic fear in the case of Chinja is the free trade deal\u2019s impact<\/strong> on India\u2019s manufacturing sector due to cheap Chinese goods.<\/p>\n

What are issues related to IPEF?<\/strong><\/h2>\n

The economic issues<\/strong> with the U.S. have been no less problematic. These are related to agriculture, intellectual property, labour and environment standards, and the digital economy. <\/strong><\/p>\n

Strategic partnership<\/strong> is not about accepting a completely U.S. self-interest-driven economic framework<\/strong> that does not suit India\u2019s current economic interests.<\/p>\n

Traditionally, trade deals used to be mostly about tariffs.<\/strong> But issues related to intellectual property, services, investment, domestic regulation, digital, and labour and environmental standards<\/strong>, are becoming more important.<\/p>\n

The U.S. ‘s IPEF proposal is entirely about all these other areas. The U.S. has also found a tariffs-free trade deal as a good way to deal with the resistance<\/strong> of many countries to free trade agreements.<\/p>\n

IPEF\u2019s \u2018new age\u2019 language<\/strong> itself is the biggest trap. As per experts, the IPEF would result in a complete control over the economic systems<\/strong> of the participating countries by the US.<\/p>\n

The IPEF is about developing a strategic-economic bloc.<\/strong> It is about an integrated economic system <\/strong>centred on the U.S. that excludes China.<\/p>\n

The systemic integration<\/strong> caused by the IPEF\u2019s will leave little room for domestic policies to help a country\u2019s own industrialisation.<\/p>\n

Developing country trade negotiators are used to the traditional language of free trade agreements<\/strong>. They find it quite difficult to understand and respond to the IPEF\u2019s language.<\/p>\n

IPEF is proposed to be concluded by November 2023, and real engagements only began late last year. Traditional free trade agreements take years to conclude<\/strong>. The US is rushing through IPEF.<\/p>\n

What are the long-term economic implications of IPEF?<\/strong><\/h2>\n

In the long run, IPEF will have a stronger effect on economic and trade flows<\/strong>. In the digitalising world, giving up policy spaces in key areas <\/strong>such as digital, labour and environment, and export constraints, would take the form of an economic dependency. <\/strong><\/p>\n

The IPEF can have implications in agriculture,<\/strong> in terms of genetically modified seeds and food. It could mean surrendering policy space for regulating Big Tech.<\/p>\n

The country can compromise a comparative advantage in manufacturing<\/strong> due to unfair labour and environment standards.<\/p>\n

It will also seriously affect India\u2019s ability to create a vibrant domestic ecosystem<\/strong> in emerging areas such as a digital economy and green products.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source- The post is based on the article \u201cThis strategic-economic bloc will only tighten the leash\u201d published in \u201cThe Hindu\u201d on 15th May 2023. Syllabus: GS2- International relations News- India is negotiating the U.S.-driven Indo-Pacific Economic Framework for Prosperity (IPEF). Why is India prioritising free trade bloc that include the US rather than China? The… Continue reading This strategic-economic bloc will only tighten the leash<\/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":[212,10498],"class_list":["post-242427","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/242427","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=242427"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/242427\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=242427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=242427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=242427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}