Modern Australian
Men's Weekly

.

What is the Indo-Pacific Economic Framework, about to be negotiated in Brisbane?

  • Written by Patricia Ranald, Honorary research associate, University of Sydney
What is the Indo-Pacific Economic Framework, about to be negotiated in Brisbane?

Australia is about to play host to negotiators from 14 countries involved in the Indo-Pacific Economic Framework (IPEF) over six days in Brisbane from Saturday.

They include the United States, Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam, but not China.

Although as unfamiliar as many of the acronyms in the alphabet soup of trade deals to which Australia is a party, the IPEF has a very specific focus.

The US wants to use it to diversify its supply chains away from China towards its allies and create US-style rules in a region encompassing the Indian and Pacific Oceans and extending from the east of Africa to the west of the United States.

At the launch of negotiations in May the US said the agreement would

enable the United States and our allies to decide on rules of the road that ensure American workers, small businesses, and ranchers can compete in the Indo-Pacific.

And the US is not involved in the two other big regional trade agreements involving IPEF members including Australia:

  • the Regional Comprehensive Economic Partnership (RCEP) of the ten ASEAN nations plus five others including China

  • the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) of 11 nations excluding China, from which the Trump administration withdrew in 2016.

There is still strong bipartisan US Congressional opposition to legally binding agreements like the CPTPP. This means in negotiating IPEF the US will not offer increased market access to Australia or other member countries.

The “four pillars” of the framework are

  1. trade, in which there will be a general commitment to boost trade among members while recognising labour rights, environmental and other concerns

  2. supply chains, aimed at diversifying away from China and facilitating cooperation among members in the event of major disruptions

  3. clean economy, in which there will be recognition of the role of incentives in encouraging energy transitions

  4. fair economy, in which the members commit to preventing and combating corruption and tax evasion.

India has opted out of the trade pillar but says it will sign up to the other pillars.

This means the IPEF will offer no immediate trade benefits for Australia or other countries, but for developing countries it will offer the prospect of US energy and other projects as an alternative to China’s One Belt One Road initiative.

Christian Gomez/The New American More open process but negotiating documents secret The Albanese government’s policy promises more transparent and accountable trade negotiations, including access to negotiating texts and independent evaluation of their costs and benefits. It has promised this for the IPEF, and both civil society and business organisations have been invited to present their views to IPEF negotiators in Brisbane. But this will be a one-way street because Australia and other IPEF countries have signed agreements with the US pledging to keep all negotiating documents secret until five years after the negotiations. Without access to the details of the proposals, consultation will be extremely limited. Standards on human rights, labour and the environment Civil society groups have made submissions supporting the IPEF goals of higher standards for labour rights and environmental protection, and are asking for them to be made fully enforceable. It remains to be seen whether all IPEF countries will commit to these goals without the carrot of access to the US market, and how commitments would be enforced unless they were legally binding. A strategic balancing act for Australia Australia is a US ally, but China is Australia’s largest export market. Foreign Minister Senator Penny Wong recently said the government’s policy was to deepen regional relationships, building a regional order in which all states can contribute to a strategic equilibrium “rather than be forced to choose sides”. The Albanese government is also hoping its recent success in re-establishing diplomatic contact with China will help ease China’s trade restrictions on Australian barley, wine and lobsters and contribute to regional stability. Read more: We've just signed the world's biggest trade deal, but what is the RCEP? But the US recently announced new trade restrictions against China, including a ban on US exports associated with the manufacturing of computer chips, and secondary restrictions on countries that export these products to China, including IPEF members South Korea and Singapore. Singapore’s prime minister Lee Hsien Loong responded saying a further decoupling between the US and China could “result in less economic cooperation, less interdependency, less trust, and possibly, ultimately, a less stable world.” The negotiations will present a challenge for the Albanese government’s policies on trade transparency, labour and environmental standards and regional stability. Authors: Patricia Ranald, Honorary research associate, University of Sydney

Read more https://theconversation.com/what-is-the-indo-pacific-economic-framework-about-to-be-negotiated-in-brisbane-196122

How To Keep Vase Flowers Fresh Through Australia’s Coldest Months

Winter flowers develop slowly, which gives them stronger structure and longer vase life Heat from indoor environments is the biggest threat to th...

Artificial Intelligence is Powering the Growth of Australian Telehealth Services

Many Australians have traditionally experienced difficulties in accessing timely and quality healthcare, especially those who live in rural or remot...

Powering Shepparton’s Businesses: Expert Commercial Electrical Services You Can Count On

When it comes to running a successful business, having reliable, compliant, and efficient electrical systems is non-negotiable. From small retail ou...

Maximise Efficiency: Cleaner Solar Panels for Optimal Performance

Solar panels are a smart investment in energy efficiency, sustainability, and long-term savings—especially here in Cairns, where the tropical sun ...

7 Common Air Conditioner Issues in Melbourne – And How to Fix Them

Image by freepik Living in Melbourne, we all know how unpredictable the weather can be. One moment it’s cold and windy, the next it’s a scorchin...

Powering Palm QLD with Reliable Electrical Solutions

Image by pvproductions on Freepik When it comes to finding a trustworthy electrician Palm QLD locals can count on, the team at East Coast Sparkies s...

The Smart Way to Grow Online: SEO Management Sydney Businesses Can Rely On

If you’re a Sydney-based business owner, you already know the digital space is crowded. But with the right strategy, you don’t need to shout the...

What Your Car Says About You: The Personality Behind the Vehicle

You can tell a lot about someone by the car they drive—or at least, that’s what people think. True Blue Mobile Mechanics reckon the car says a l...

The Confidence Curve: Why Boudoir Photography Is the Empowerment Trend You Didn’t Know You Needed

Boudoir photography has been quietly taking over social feeds, Pinterest boards, and personal milestones—and for good reason. It’s not just abou...

Understanding Level 2 Electricians: Why Sydney Residents Need Licenced Experts for Complex Electrical Work

When it comes to electrical work around the home or business, not all electricians are created equal. In Sydney, particularly when you're dealing wi...

Retirement Anchored in Model Boat Building for Waterford’s Doug Unsold

WATERFORD — When Doug Unsold sees his ship come in, it’s usually one he’s crafted with his own hands. The 67-year-old retiree from Waterford ...

The Science Behind Alarm Clocks and Your Circadian Rhythm

Waking up on time isn’t just about setting an alarm—it’s about working with your body, not against it. At the heart of every restful night and...

How to Use Plants to Create a Calming Atmosphere in Your Home

In today’s fast-paced world, cultivating a calm, soothing environment at home has never been more important. Whether you live in a busy urban apar...

How Maths Tutoring Can Help Students Master Maths

Mathematics can be a daunting subject for many students, often causing stress and frustration. However, maths tutoring has proven to be an effective...

Refurbished iPads Are Better Than New Ones (Here's Why)

Image by rawpixel.com on Freepik Apple's refurbished iPad program has quietly become one of the best deals in tech. While everyone obsesses over the ...

Your Guide to Finding the Right GP: What Perth City Doctors Offer Today

Choosing a General Practitioner (GP) is one of the most important health decisions you’ll make. Luckily, Perth’s vibrant CBD now hosts a new ge...

Why Every Mining Operation Needs a Robust Safety Management System

Mining is one of the backbones of the Australian economy, particularly in Western Australia. Back in 2019-20, mining contributed 10.4% of Australia...

Australian Classic Literature Enjoys Resurgence

Welcome back to the good old days of storytelling! As the modern world becomes increasingly more demanding, returning to childhood favourites offers...