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Biden Launches New Indo-Pacific Trade Pact

MAY 23 2022·Updated DEC 30 2022

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The Facts

Pres. Biden has announced the formal launch of the Indo-Pacific Economic Framework for Prosperity (IPEF), which will see the US, together with 12 Asia-Pacific nations, work on common standards in trade, supply chains, clean energy and infrastructure.
Al Jazeera
The countries involved will soon begin talks to define the final framework. Negotiations are set to last 12 to 18 months, which is considered an aggressive timeline.
Time
IPEF is geared towards countering China's influence in the Indo-Pacific. Initial participants include major economies like Australia, India, Japan and S. Korea, alongside developing nations like Indonesia, the Philippines, Malaysia, Thailand and Vietnam.
NBC
The 13 countries represent about 40% of the global GDP, leading some officials to describe the pact as the US' most remarkable economic engagement in the region.
NBC
It marks an attempt by the US to reinvigorate ties in the Asia-Pacific region, reverting the trend that followed former Pres. Trump's abrupt withdrawal from the Trans-Pacific-Partnership. However, the White House has been categorical that the IPEF will not expand member nations' access to the US market.
Al Jazeera
This comes as the US has nearly doubled its investment in the Indo-Pacific in the last decade, reaching over $969B in 2020. In return, the region supports more than 3M American jobs with nearly $900B invested back into the US.
FOX News

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The Spin

Establishment-critical narrative

The IPEF is an uninspiring prospect for the pact's members; it lacks clear trade provisions and, thus, clear incentives for developing, trade-reliant nations that have joined the US-led deal. In fact, Biden's resistance to pursuing a major trade deal echoes the protectionist inclinations of Trump and his abrupt exit from the TPP.

Al Jazeera

Pro-establishment narrative

Had Trump not pulled out of the TPP, Biden wouldn't be forced to make diplomatic compromises with such a diluted framework. In the current, delicate state of hyperpartisanship, Biden knows he would be unable to garner support for a less flexible or more committed trade deal than IPEF, which will successfully keep the US active in the Asia-Pacific region until political attitudes towards traditional trade agreements move forward.

USA Today