IPEF Ministerial Meeting

• 31 May 2023

For Prelims: Indo-Pacific region, Indo-Pacific Economic Framework for Prosperity (IPEF)

For Mains: Groupings & Agreements Involving India and/or Affecting India's Interests, Bilateral Groupings & Agreements, Indo-Pacific and its Significance

Why in News?

Recently, the second Indo-Pacific Economic Framework for Prosperity (IPEF) Ministerial Meeting took place, showcasing the significant strides made in fostering economic engagement among partner countries in the Indo-Pacific region.

• Hosted by the United States, this virtual gathering convened high-level officials to delve into discussions regarding the four pillars of the framework and the ongoing negotiations associated with each pillar.

What are the Key Highlights of the Meeting?

• The meeting announced the substantial conclusion of the negotiations of a first-of-its-kind international IPEF Supply Chain Agreement under Pillar II of the framework, which aims to increase the resilience, efficiency, productivity, sustainability, transparency, diversification, security, fairness, and inclusivity of their supply chains.
• The meeting also reported good progress under the other IPEF Pillars, namely Fair and Resilient Trade (Pillar I), Infrastructure, Clean Energy, and Decarbonization (Pillar III), and Tax and Anti-Corruption (Pillar IV).
• The meeting witnessed the introduction of a regional hydrogen initiative by some IPEF partners to encourage widespread deployment of renewable and low-carbon hydrogen and its derivatives in the region under Pillar III.

What is IPEF?

• About:
  • It is a US-led initiative that aims to strengthen economic partnership among participating countries to enhance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness in the Indo-Pacific region.
  • IPEF was launched jointly by the USA and other partner countries of the Indo-Pacific region on 23rd May 2022, at Tokyo.
• Members:
  • Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States, and Vietnam.
• Pillar:
  • Trade (Pillar I):
    • Focuses on enhancing trade engagement among IPEF partner countries.
    • Aims to promote economic growth, peace, and prosperity in the region.
    • India had joined Pillars II to IV of IPEF while it has an observer status in Pillar-I.
  • Supply-chain resilience (Pillar II):
    • Seeks to make supply chains more resilient, robust, and well-integrated.
    • Emphasizes crisis response measures and cooperation to mitigate disruptions.
    • Focuses on improving logistics, connectivity, and investments in critical sectors.
    • Aims to enhance worker roles through upskilling and reskilling initiatives.
  • Clean Economy (Pillar III):
    • Aims to advance cooperation on clean energy and climate-friendly technologies.
    • Focuses on research, development, commercialization, and deployment of clean energy.
    • Encourages investment in climate-related projects in the Indo-Pacific region.
  • Fair Economy (Pillar IV):
    • Focuses on implementing effective anti-corruption and tax measures.
    • Highlights India's strong steps in improving legislative and administrative frameworks to combat corruption.

Reaffirms commitment to implementing UNCAC (United Nations Convention against Corruption) and FATF (Financial Action Task Force) standards.

Source: PIB