Focus: GS II: International Relations
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.
Key Highlights of the Meeting:
Conclusion of International IPEF Supply Chain Agreement:
- The meeting announced the successful conclusion of negotiations for an innovative international agreement under Pillar II of the framework.
- This groundbreaking agreement aims to enhance the resilience, efficiency, sustainability, transparency, and inclusivity of global supply chains.
- It will contribute to increased productivity, diversification, security, fairness, and inclusivity within supply chains.
Progress in Other Pillars of IPEF:
- The meeting reported positive advancements in the remaining pillars of the framework.
- Under Pillar I, Fair and Resilient Trade, notable progress was made. Similarly, Pillar III, focused on Infrastructure, Clean Energy, and Decarbonization, showcased encouraging developments.
- Pillar IV, which focuses on Tax and Anti-Corruption, also witnessed significant strides.
Introduction of Regional Hydrogen Initiative:
- During the meeting, certain IPEF partners introduced a regional hydrogen initiative under Pillar III.
- The initiative aims to promote the widespread deployment of renewable and low-carbon hydrogen, along with its derivatives, in the region.
- This initiative aligns with the overarching goal of decarbonization and clean energy transition.
Indo-Pacific Economic Framework for Prosperity (IPEF)
- The Indo-Pacific Economic Framework for Prosperity (IPEF) is an economic initiative that was launched by United States President Joe Biden on May 23, 2022. Here are some key facts about IPEF:
- Member States: IPEF has fourteen member states, including Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States, and Vietnam.
- Pillars: The IPEF has four pillars that form the basis of its economic framework. These are Trade (Pillar I), Supply Chains (Pillar II), Clean Economy (Pillar III), and Fair Economy (Taxation & Anticorruption) – (Pillar IV).
- Bali Round: The Bali Round was a meeting held as part of the IPEF initiative, where member states discussed various aspects of the framework. During this meeting, discussions were held on all four pillars of the IPEF. India participated in the discussions related to Pillars II to IV, which covered Supply Chains, Clean Economy, and Fair Economy (Taxation & Anticorruption).