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Indo-Pacific Economic Framework for Prosperity (IPEF)

Indo-Pacific Economic Framework for Prosperity (IPEF)

The Indo-Pacific Economic Framework for Prosperity (IPEF) was launched on 23 May 2022 and currently includes 14 partners - Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, the United States and Vietnam. It provides a platform for countries in the region to collaborate on advancing resilient, sustainable, and inclusive economic growth, and aims to contribute to cooperation, stability, and prosperity in the region.  Prime Minister Lee Hsien Loong’s intervention at the Leaders’ launch of the IPEF can be found here; with the Leaders’ Statement issued at the launch here

The IPEF comprises four pillars of cooperation outlined in the Ministerial Statements issued on 9 September 2022.

  • Pillar 1 – Trade. IPEF partners will seek to develop high-standard, inclusive, free, fair, and open trade commitments that build upon the rules-based multilateral trading system and develop new and creative approaches to trade and technology policies in the areas of: labour; the environment; the digital economy; agriculture; transparency and good regulatory practices; competition policy; trade facilitation; inclusivity; and technical assistance and economic cooperation.

     

  • Pillar 2 – Supply Chains. Negotiations on the IPEF Supply Chain Agreement were substantially concluded on 27 May 2023. This is the first multi-country arrangement to strengthen the resilience and connectivity of supply chains through collective and individual actions. Three coordination bodies will be established to advance cooperation among IPEF countries: (a) a Supply Chain Council that will develop sector-specific action plans to strengthen resilience in critical sectors and key goods; (b) a Crisis Response Network to facilitate emergency communications and coordination between governments during supply chain disruptions; and (c) a tripartite Labour Rights Advisory Board that will help promote labour rights in IPEF countries’ supply chains. The Agreement can be found here.

     

  • Pillar 3 – Clean Economy (Clean Energy, Decarbonisation, and Infrastructure). IPEF partners will seek to advance cooperation (e.g., on research and development, technologies, policy frameworks, capacity building, technical assistance, financing, platforms and networks) in the areas of: energy security and transition; greenhouse gas emissions reductions in priority sectors; sustainable land, water, and ocean solutions; innovative technologies for greenhouse gas removal; and incentives to enable the clean economy transition.

     

  • Pillar 4 – Fair Economy (Tax and Anti-Corruption). IPEF partners will seek to implement and accelerate progress on anti-corruption measures and tax initiatives within our domestic legal frameworks, consistent with international agreements and standards applicable to each IPEF partner based on its respective commitments. Efforts will include information sharing and capacity building.
Negotiations on the Agreements for Pillars 1, 3, and 4 are ongoing.

 

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