As this is only a proposal, the countries should then start negotiating what the organization would look like in practice and what its objectives would be.
President of the United States Joe Biden has published its proposal for an economic organization to counterbalance China’s strengthening.
Underlying this is the desire to restore economic ties to the region, as his predecessor Donald Trump ordered the United States to withdraw from the Pacific Free Trade Agreement in 2017.
In addition to the United States, the Indo-Pacific Economic Framework for Prosperity (IPEF) proposed by Biden would include Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam.
– We are writing new rules for the 21st century economy. They will help the economies of all our countries grow faster and more equitably, Biden said in a statement.
As this is only a proposal, the countries should then start negotiating what the organization would look like in practice and what its objectives would be. If negotiations begin, they are expected to last 12 to 18 months.
There are many themes to the negotiations
White House National Security Adviser Jake Sullivan estimates that the IPEF could focus on the integration of the Indian and Pacific economies, such as setting commonly agreed standards for new industries.
The aim could also be to improve operational reliability and supply chains. Taxation, climate change and the fight against corruption could also be discussed.
U.S. President Joe Biden is currently on a five-day visit to Asia. The purpose of the trip is, among other things, to discuss the situation in North Korea and China and to promote military cooperation with the Allies.