and commenting on the Indo Pacific Economic Framework negotiations at an impasse U.S. restrictive

Mondo Finance Updated on 2024-02-08

The Indo-Pacific Economic Framework, announced in May 2022, is Biden's first major economic and trade initiative, which has attracted much attention. The core purpose of the initiative is to "strengthen relationships with key economies in the Indo-Pacific region and establish a first-chain mechanism without China." The framework is based on the "four pillars" of :* chain, clean energy, taxation and anti-corruption, ** The members of the framework include Japan, South Korea, Australia and other allies of the United States, which account for 40% of the world's total economy.

However, in November last year, due to the attitude of the United States, the "** pillar" negotiations in the framework failed to achieve "early results". This is largely due to the refusal of the United States to open its markets to other member countries, fearing that the agreement could have an impact on domestic employment. As a result, IPEF has basically reached a dead end.

Some within the US Democratic Party oppose the "** pillar" agreement, including Senator Sherrod Brown of Ohio, Democrat. He argued that the agreement lacked "enforceable labor standards". Previously, Brown had also opposed the Trans-Pacific Partnership (TPP), arguing that it would lead to more work abroad and lower wages for American workers. For the Democrats, it's vital that they don't want to lose votes from labor unions again.

Currently, some U.S. allies and partners have lost interest in the IPEF, in part because the framework is not a free agreement and does not provide access to the U.S. market. The IPEF appears to have come to an end, reflecting the failure of the United States to rebuild economic leadership in the Asia-Pacific region and reexposing the credibility of the United States since it withdrew from the TPP in 2017.

Economic prosperity in the Asia-Pacific region depends on openness, cooperation and mutual benefit. Any regional economic cooperation framework must ensure fairness and inclusiveness, rather than discrimination and exclusivity. The United States should recognize this and make a change. In order to contain China's development, the United States has politicized issues such as science and technology, which has seriously disrupted the global chain and industrial chain, undermined the multilateral system, and harmed the interests of all countries. Pulling "small circles" and building "high walls" is harmful to others and is not beneficial to oneself, and is destined to be unpopular.

In short, the United States should reflect on its behavior, abandon unilateralism, and jointly safeguard the stability and development of the multilateral system.

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