India keeps close watch on IPEF's trade pillar talks: Official
India is closely monitoring trade negotiations within the IPEF but has not formally joined its trade pillar due to concerns about binding commitments without market access. India has already signed agreements on supply chains, clean economy, and fair economy
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New Delhi: India is keeping a close watch on trade negotiations of the 13 IPEF (Indo-Pacific Economic Framework for Prosperity) member countries, which it is yet to join formally, an official said on Thursday. The IPEF was launched jointly by the US and other partner countries of the Indo-Pacific region on May 23 in Tokyo. The 14 IPEF partners represent 40 per cent of global GDP and 28 per cent of global goods and services trade.
The framework is structured around four pillars relating to trade, supply chains, clean economy, and fair economy (issues like tax and anti-corruption). India has joined the three pillars except the trade part. The member countries are holding negotiations to sign separate agreements on these subjects. The agreement on supply chains, clean economy, and fair economy (issues like tax and anti-corruption) have already been signed by the 14 member countries.
"We are waiting for the final outcomes because there are binding commitments in the trade pillar without clear market access provisions. There is going to be a dispute settlement in many areas. "We are not close to the idea neither we have committed to the idea...We will wait, we are observing it closely. As it progresses and as countries come together and start finalising the deal, maybe we will take a call at that point of time whether it is good or bad for us," the official said when asked if India is planning to join this pillar.
Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, the US and Vietnam are members of the bloc. India already has a free trade agreement in goods with Asean, whose members include seven IPEF nations - Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore, Vietnam and Thailand; Australia; Japan and Korea. So, at the end of the day, India may not gain much by joining the trade pillar. The negotiations among the 13 IPEF members are not yet over and there are differences within the partner countries on major issues.
