A new economic partnership framework advocated by the United States, the IPEF (Indo-Pacific Economic Framework) ministerial-level meeting will begin in Los Angeles in the early hours of the 9th, Japan time.
The focus is on whether Japan and the United States can take the lead in declaring the start of negotiations toward the creation of a new framework for trade and investment, with China's growing influence in mind.
The IPEF is a framework in which 14 countries, including Japan, the United States, India, and Australia, participate. METI Minister Nishimura will attend the first face-to-face ministerial-level meeting from Japan.
Unlike previous economic partnerships, such as the Trans-Pacific Partnership Agreement (TPP), IPEF does not target the elimination or reduction of tariffs, and plans to focus negotiations on four areas.
Of these,
▽ "trade" will work on facilitation of trade using digital technology, and "supply chain" will aim to promote cooperation in each country in preparation for a situation where the supply of important goods such as semiconductors is interrupted.
In addition , we plan to negotiate on
cooperation for decarbonization and
the issue of double taxation on global companies, and we can declare the start of negotiations toward the creation of a new framework for trade and investment, led by Japan and the United States. Ka is the focus.
However, it is unclear how many countries will participate in the four areas of negotiations, as countries do not have to participate in all areas of negotiations.
The meeting will begin in the early hours of the 9th, Japan time, and each country plans to compile a ministerial statement after two days of discussion.
Minister of Economy, Trade and Industry Nishimura "A framework that can respond to the challenges of the 21st century"
Arriving in Los Angeles to attend the IPEF ministerial-level meeting, Minister of Economy, Trade and Industry Nishimura told reporters, "We are responding to 21st-century challenges such as strengthening supply chains and decarbonizing, which is the demand of the times. Although there are still pending issues and points of contention, I would like to lead the discussion so that as many countries as possible can participate in the negotiations,” he said.
Advocated by President Biden, 14 countries participate
The IPEF = Indo-Pacific Economic Framework was proposed by President Biden of the United States last October to launch a new economic partnership framework with China's growing influence in mind.
When President Biden visited Japan in May this year, he formally announced that he would begin talks to launch the IPEF.
Currently, in addition to Japan and the United States, 14 countries are participating in the IPEF:
Australia ,
New Zealand ,
South Korea ,
India ,
Fiji ,
Brunei ,
Indonesia ,
Malaysia , the
Philippines ,
Singapore ,
Thailand
, and Vietnam.
Among them are India, which does not participate in the TPP = Trans-Pacific Partnership Agreement and has a large economy, as well as seven countries in Southeast Asia.
By participating in the IPEF negotiations, the countries of Southeast Asia appear to have a desire to expand trade and business with the United States, an economic powerhouse.
However, since there are many countries in Southeast Asia that have strengthened their economic ties with China, the negotiations were caught in a dilemma as to how far they could deepen their ties with the United States through the IPEF without damaging their ties with China. will participate in
Aiming to declare the start of negotiations in four areas such as "trade"
The IPEF plans to negotiate four areas: "trade", "supply chain", "clean economy" and "fair economy".
Of these, the theme of "trade" is expected to be the facilitation of trade through the use of digital technology such as the digitization of customs procedures.
In addition, in the "supply chain", in preparation for situations where the supply of important goods such as semiconductors, resources, and food is interrupted due to infectious diseases and conflicts, we are considering creating a system to minimize the impact. is.
In addition, in the "clean economy," the stable supply of gas and other supplies is threatened by Russia's invasion of Ukraine. It is a policy to negotiate the issue of double taxation and efforts to prevent corruption.
Each country is aiming to compile ministerial statements in each of these four areas and declare the start of negotiations.
On the other hand, unlike previous economic partnerships such as the Trans-Pacific Partnership Agreement (TPP), the IPEF does not include the elimination or reduction of tariffs as the subject of negotiations.
Furthermore, each country can choose which areas to participate in, rather than being required to participate in all areas of negotiations.
The U.S. seems to aim to strengthen its influence in the Indo-Pacific region by avoiding negotiations on tariffs, where the interests of each country tend to be in conflict, and by making the framework flexible. .
Is US aiming to strengthen its influence in the Indo-Pacific region?
The US advocating the launch of the IPEF appears to be aimed at strengthening its influence in the Indo-Pacific region against China.
This region has India and Southeast Asian countries that continue to enjoy high economic growth, but the United States has distanced itself from the region's economic framework after withdrawing from the Trans-Pacific Partnership (TPP) in 2017. is.
On the other hand, in recent years, China has increased its influence in the Indo-Pacific region by providing huge loans for infrastructure under its “One Belt, One Road” initiative for a huge economic zone. I applied for membership.
Regarding the TPP, the Biden administration is concerned about the impact of trade liberalization on domestic employment, and it is believed that it will be difficult to return for the time being.
In light of this, the United States is believed to be aiming to strengthen its influence in the region by launching a new framework called the IPEF and leading the negotiations.
Japan, too, agrees with the United States in that Japan and the United States will take the lead in creating a new framework for trade and investment, and intends to actively participate in negotiations.
However, the TPP not only eliminates or reduces tariffs, but also has a wide range of trade liberalization rules in place, including the protection of intellectual property rights. increase.
History of US-led IPEF
IPEF = Indo-Pacific Economic Framework, a new economic partnership framework led by the United States.
This is the story so far.
The United States was originally a strong leader in the Trans-Pacific Partnership Agreement (TPP).
Japan joined the negotiations in 2013, but initially, in principle, it aimed to eliminate tariffs on all items, and also offered freedom in a wide range of areas, such as the protection of investment and intellectual property rights, which were not found in previous agreements. Its goal was to bring about a fierce controversy that split the country in half.
After more than two years of negotiations, the TPP reached an agreement in principle in October 2015.
However, the previous Trump administration withdrew, arguing that "free trade deprives Americans of jobs."
The Biden administration, which succeeded him, is also cautious about returning because it "prioritizes the protection of domestic workers."
The TPP came into effect four years ago in 2018, with 11 countries excluding the United States participating.
After that, the United Kingdom applied for membership last year, and China and Taiwan also applied one after another.
On the other hand, RCEP = Regional Comprehensive Economic Partnership, in which 15 countries mainly in East Asia such as Japan, China, and South Korea participate, will take effect in January this year.
Covering approximately 30% of the world's GDP and population, it is the world's largest free trade zone and is the first to include China.
Under these circumstances, the IPEF was launched last year by the United States in order to compete with China, which is increasing its presence in the Indo-Pacific region.
In order to strengthen economic security, the United States will in principle ban the export of semiconductors to Chinese high-tech companies that are said to be involved in military diversion, and the import of products that are believed to have been produced by forced labor in the Xinjiang Uighur Autonomous Region. measures are being introduced one after another.
The United States would like to establish such common standards and rules in the Indo-Pacific region, and to share these principles with other countries.
However, some countries in Southeast Asia, which have deep economic ties with China, fear that if they become deeply involved in the US-led IPEF, their relations with China will be adversely affected, such as by affecting their trade.
In response, the Biden administration has relaxed the conditions for participating in IPEF discussions so that they can choose the areas they want to participate in, rather than all four pillars, and encourage countries to participate.
Also, unlike the TPP and RCEP, negotiations on the elimination or reduction of tariffs will not take place.
For this reason, some countries believe that it is difficult to obtain benefits such as expanding exports to the United States.
On the other hand, if the United States pays too much attention to the participating countries, the effectiveness of the framework to put pressure on China will be weakened, and the aim and significance of the framework itself will be diminished. is going to be a big question.