Indo-Pacific Economic Framework Progress Stumbles Ahead of APEC Summit, US Negotiates Despite Trade Snags

IPEF Negotiations Fall Short with Absence of Tariff Commitments and Suspension of Digital Trade Standards, Leaving Only One of Four Pillars Completed Ahead of APEC Summit

• The Indo-Pacific Economic Framework (IPEF) negotiations are reaching a crucial stage ahead of the APEC Summit, with expectations of an official announcement next week, but progress is considered slow with only one of the four pillars completed.
• Despite the Biden administration's efforts to formally reengage economically in the Indo-Pacific region, the emerging IPEF deal has been criticized for its lack of tariff commitments and recent suspension of digital trade standards.
• The IPEF deal currently promotes cooperation, resource sharing, and best practices in green energy transition, curbing corruption, labor rights, and diversifying supply chains. However, its absent emphasis on economic integration between the U.S. and the Indo-Pacific is concerning.
• The intense strategic rivalry between the United States and China is posing further challenges to the IPEF negotiations, however, officials from the Indo-Pacific region have expressed their unwillingness to choose sides between these two world powers.
• One pillar of the IPEF, focusing on strengthening supply chains, has a completed text, and announcements are expected on cooperation accelerating clean energy transition and combatting corruption and tax evasion. However, issues around labor and environmental standards and digital trade standards need further negotiation.

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