US proposes pick-and-choose Indo-Pacific economic framework
The US has proposed a “pick-and-choose” based Indo-Pacific Economic Framework (IPEF).
The proposed IPEF answers questions from the Biden administration about the United States’ economic commitment to the strategically important Indo-Pacific region.
The Indo-Pacific region has been the focus of many former US Presidents’ policies. For example, President Barack Obama’s “Pivot to Asia” or “Rebalancing” strategy and the Trump administration’s “Strategic Framework for the Indo-Pacific”, etc.
The IPEF has been proposed as a forum for dialogue on a variety of economic issues.
Economic issues are divided into four pillars:
- fair and unhindered trade;
- continuity of the supply chain;
- infrastructure, clean energy and decarbonization and
- Anti-tax and corruption.
The United States considers India’s participation in the IPEF very important.
India views this framework in a positive light. India particularly favors cooperation in terms of the ‘supplies chain continuity’ pillar. However, India has also sought flexibility in the framework to encourage various countries to join.
The US sees India as an “important partner” in its economic activities in the region. Also, it is also “very actively communicating” with the Government of India to resolve doubts about IPEF.
Given China’s Belt and Road Initiative, the Indo-Pacific region presents an opportunity to engage in economic and security aspects.
Source – The Hindu
