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U.S. Department of the CommerceSeptember 9, 2022
Secretary of Commerce Gina M. Raimondo and United States Trade Representative Katherine Tai hosted counterparts from the 13 Indo-Pacific Economic Framework for Prosperity (IPEF) partner countries – representing over 40% of the global economy – at the first official in-person Ministerial meeting. The ministers had positive and constructive discussions, and announced a substantial milestone in their pursuit of a high-standard and inclusive economic framework.
“Our first in-person meeting has been an undeniable success,” said Secretary Raimondo. “This week, 14 countries came together to chart a path forward that will create economic opportunity, improve labor conditions, and promote sustainability for all of our economies. Just as importantly, this ministerial gave us an opportunity to show that we can deliver concrete and tangible economic benefits for partner countries while pursuing an inclusive and high standard framework at the same time. I am proud of the progress we’ve made and I’m excited to continue building momentum in this effort.”
“This meeting was a chance to deepen our partnerships and fill in the details about how we will work collectively to address the challenges and opportunities that will define the 21st century,” said Ambassador Katherine Tai. “After several days of intensive discussions, we have made real progress toward that goal and I am excited to continue developing this Framework, which will unlock enormous economic value for our region and serve as a model for the rest of the world to follow.”
Since its launch in May launch, IPEF countries have engaged in intensive discussions to scope out each pillar of the Framework. At the conclusion of the Senior Officials and Ministerial meetings, the partners reached consensus on ministerial statements for each of the four IPEF pillars: Trade; Supply Chains; Clean Economy; and Fair Economy.
The Framework will advance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness for our economies. Through IPEF, the partners aim to contribute to cooperation, stability, prosperity, development, and peace within the region. The Framework will also offer tangible benefits that fuel economic activity and investment, promote sustainable and inclusive economic growth, and benefit workers and consumers across the region. The 14 IPEF partners represent 40 percent of global GDP and 28 percent of global goods and services trade.
The IPEF ministerial statements are available via the links provided below:
• Pillar I (Trade)
In the Trade Pillar, the IPEF partners will seek high-standard provisions in areas that are foundational to resilient, sustainable, and inclusive economic growth, including labor, environment, digital economy, agriculture, transparency and good regulatory practices, competition, inclusivity, trade facilitation, and technical assistance and economic development. The United States and the IPEF partners will seek high-standard provisions that benefit workers and ensure free and fair trade that contributes to promoting sustainable and inclusive economic growth and that meaningfully contribute to environmental protection. We intend to advance inclusive digital trade by building an environment of trust and confidence in the digital economy, by addressing discriminatory practices, and by promoting trusted and secure cross-border data flows. We will seek to advance food security and sustainable agricultural practices and the benefits of good regulatory practices in supporting good governance and will work towards harnessing best practices with respect to facilitating trade.• Pillar II (Supply Chains)
In the Supply Chains Pillar, the countries will seek to coordinate actions to mitigate and prevent future supply chain disruptions and secure critical sectors and key products for our manufacturers. The United States will work with IPEF partners to identify sectors and products critical to our national security, economic resilience, and the health and safety of our citizens – and then act collectively to increase the resilience of these sectors, creating jobs and economic opportunities in key industries of the future. Partners will identify sole sources and choke points in critical supply chains, and work collaboratively to address them by promoting and supporting investments in new physical and digital infrastructure. Partners will use data to improve supply chain logistics and invest in new training and development opportunities to upskill workers and ensure that all citizens share in the benefits of increased supply chain resilience. Finally, the countries will seek to ensure that the work promotes the labor standards that underpin fair, sustainable, and resilient supply chains.• Pillar III (Clean Economy)
In the Clean Economy Pillar, the countries will seek to expand investment opportunities, spur innovation, and improve the livelihoods of citizens as the partners unlock the region’s abundant clean energy resources and substantial carbon sequestration potential. The partners aim to advance cooperation on clean energy and climate-friendly technologies, as well as mobilize investment and promote usage of low- and zero-emissions good and services. This work will be part of a future-oriented effort to enhance energy security and reduce overall greenhouse gas emissions. The partners seek to promote just transitions with the active participation of our stakeholders, including the private sector, workers, and local communities.• Pillar IV (Fair Economy)
In the Fair Economy Pillar, the countries will seek to level the playing field for businesses and workers within partner countries by preventing and combatting corruption, curbing tax evasion, and enhancing transparency, recognizing the importance of fairness, inclusiveness, the rule of law, accountability and transparency. By innovating and strengthening shared approaches to implementing anticorruption and tax measures, the countries will seek to improve the investment climate and boost flows of commerce, trade, and investments among our economies while advancing a free, open, and prosperous Indo-Pacific region.
In May 2022, Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the United States, and Viet Nam began the process to establish the Indo-Pacific Economic Framework for Prosperity. Ambassador Tai and Secretary Raimondo held the first virtual Ministerial in May shortly after the official launch. They also held a virtual Ministerial in July, which reaffirmed their collective goal to pursue ongoing and intensified engagements with IPEF partner countries.
The full text of the May 2022 IPEF launch statement is available here
BUREAUS AND OFFICESInternational Trade Administration
LEADERSHIPGina M. Raimondo
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Remarks by Ambassador Katherine Tai at the Indo-Pacific Economic Framework Ministerial Closing Press Conference
As prepared for delivery:
Good morning everyone.Thank you, Secretary Raimondo. You are a fantastic partner. I want to thank your staff for their close collaboration. I also want thank my team at USTR for their tireless work to help make this Ministerial possible.But most importantly, I have to thank our 13 IPEF partners for traveling to Los Angeles to attend our first in-person Indo-Pacific Economic Framework Ministerial. It was energizing to be in the same room with all of our partners, and that energy will carry us through our discussions across the Framework’s ambitious components in the days ahead.I have said it before, and it’s worth repeating – for decades, trade was often reduced to a zero-sum game that left many behind. But President Biden believes in putting workers at the center of our economic agenda, and that trade should be a platform that delivers real opportunities for real people.The IPEF embodies how we intend to move forward to bring equitable growth to our region.We launched this Framework in May to develop a modern economic arrangement – an arrangement that delivers broad-based economic connectivity and benefits our workers, combats climate change, builds resilient supply chains and levels the playing field for our companies.And as I said yesterday, this meeting was a chance to deepen our partnerships and fill in the details about how we will work collectively to address the challenges and opportunities that will define the 21st century.I’m happy to say that after several days of intensive discussions, we have made real progress toward that goal. And the ministerial statements demonstrate our innovation and ambition.Our intention now is to move towards negotiations with our partners on each pillar, with the first round of discussions taking place after this ministerial.Specifically, we intend to develop initiatives that promote sustainable and inclusive growth by adopting and maintaining, and enforcing laws based on internationally-recognized labor rights.We will identify ways to protect the environment, respond to our common sustainability challenges, including climate change, and facilitate trade and investment in relevant clean technologies.On the digital economy, we want to build confidence in the digital economy, address discriminatory practices and promote trusted and secure cross-border data flows, among other important issues.We can increase food security and help our farmers, ranchers, and fishers expand access to markets throughout the region by using science-based practices and optimizing land, water, and fuel use.Increased transparency, good regulatory practices, and stronger consumer protection coupled with fairer competition, expanded access for all small businesses and technical assistance will unlock enormous economic value for our region, especially for small businesses.Taken together, the components of the trade pillar will promote a race to the top for all, strengthen our supply chains and spur cooperation that supports durable growth.This Framework will be a model for the rest of the world to follow. It will unlock enormous economic value for our region. And we will develop these pillars with input and discussion from stakeholders, trading partners, and Congress.The IPEF is our commitment to the region and its people; that the United States will fight for the common good to ensure that the next generation inherits a better world.And I am excited about continuing our discussions in the weeks and months ahead.Thank you.
By U.S. Embassy Jakarta | 19 September, 2022 | Topics: Press Releases
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