US, 13 allies to sign Indo-Pacific economic agreements
The US and 13 partner nations in Asia and the Pacific are poised to sign agreements on two additional components of an economic pact crucial to Washington’s regional influence, Bloomberg reported on Thursday.
Negotiations on the clean and fair economy facets of the Indo-Pacific Economic Framework were finalised last year, with Singapore’s Prime Minister Lawrence Wong confirming the upcoming signing on Thursday.
This event coincides with an anticipated ministerial meeting, attended by US Secretary for Commerce Gina Raimondo.
The pact encompasses the so-called “four pillars,” including the clean economy, focused on renewable energy transition and climate change mitigation, and the fair economy, addressing taxation and corruption concerns.
Additionally, an agreement was reached earlier on the supply-chain pillar, aimed at averting pandemic-related bottlenecks, but consensus remains elusive on the final trade pillar due to complex issues like digital commerce rules and labour standards.
Wong highlighted some countries delaying their emission reduction plans, emphasising the urgency of adhering to the timeline for achieving net-zero emissions amidst escalating climate challenges.
Concurrently, Raimondo announced a coalition’s commitment, comprising climate-aligned partners such as BlackRock, GIC, the Rockefeller Foundation, and Temasek, to invest over $25 billion in capital for Indo-Pacific emerging market infrastructure.
The IPEF forms part of a broader initiative spearheaded by US President Joe Biden to counter China’s entrenched economic sway in Asia. Participating nations, including Japan, India, and South Korea, collectively constitute the world’s top 10 largest economies, with the 14 nations involved representing about $38 trillion in economic output.
Notably, Wong previously expressed Southeast Asian nations’ eagerness to strengthen ties with the US, citing the benefits of America’s regional presence in fostering peace and prosperity. “For decades, America’s presence in Asia has brought peace and prosperity and created a stable environment for countries like Singapore to prosper,” remarked Wong during the forum. “That’s why Singapore has long been an advocate for the US to actively engage the region, especially Southeast Asia.”
