The United States aims through a new Indo-Pacific economic engagement initiative to establish rules that will bring regional prosperity, U.S. Trade Representative Katherine Tai said Wednesday ahead of the first in-person ministerial meeting under the initiative.
The launch of the Indo-Pacific Economic Framework was announced during U.S. President Joe Biden's visit to Japan in May and is shaping up as a key part of his administration's strategy to engage with the fast-growing region where China is expanding its clout.
The two-day ministerial meeting involving 14 members of IPEF, starting Thursday in Los Angeles, is likely to pave the way for the official kickoff of negotiations centering on four pillars -- trade, supply chain resilience, infrastructure and clean energy, and tax and anti-corruption.
The initiative is expected to go "beyond a traditional trade agreement," Tai emphasized in an online event organized by the Carnegie Endowment for International Peace, a think tank in Washington, adding that trade is only "one component in a larger program."
"What we're really trying to do is -- in partnership with these other countries -- to establish rules to create workstreams" that will allow members to promote "sustainability, resilience, and inclusive prosperity for our economies and for this region," Tai said.
The Biden administration has said the economic framework will not be a traditional free trade agreement involving tariff-cutting commitments, raising questions as to the benefits of becoming part of the framework.
A senior administration official told reporters that supply chain issues are "where we're really seeing countries respond to wanting to partner with the United States."
The vulnerability of the semiconductor supply chain has come under increasing scrutiny as the coronavirus pandemic has triggered a global shortage of the essential components used in everything from smartphones and laptops to cars as well as national defense systems.
Russia's war on Ukraine has also raised supply concerns over food and energy, with both countries key exporters in those areas.
In addition to the United States, IPEF includes Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand and Vietnam.
In a show of flexibility, members can choose to join any of the four pillars individually. Attention is growing as to which country will join which pillar.
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