What is the IPEF

What is the IPEF, if not a trade deal?

For the past few months, the Biden administration has been working with countries in the Indo-Pacific region to try and bring them on board with the idea of an alternative trading arrangement led by the U.S. 

The four pillars that the IPEF framework 

rests on are

 ‘Connected Economy’, 

💐setting standards on digital trade, 💐cross-border data flows and data localisation; 

‘Resilient Economy’, 

💐with supply chain commitments and guarding against price spikes; 

‘Clean Economy’, 

💐with commitments on clean energy,

💐 decarbonisation, 

💐and infrastructure to cut emissions;

 and ‘Fair Economy’, 

💐in terms of enforcing regimes that cut down on money laundering and corruption,

💐 and ensure fair taxation. 

As a result, the IPEF is more about standard setting and facilitating trade and will not involve more market access for its members. 

Nor will it negotiate lower tariffs. Officials say as the negotiations proceed, they may incorporate more ideas, but have also stressed that members can take a “pick and choose” attitude towards joining only the pillars that interest them. 

While this concept has been developed in order to be more inclusive and attract more members, it also has raised questions about the seriousness of the U.S. proposition. 

Source the hindu