logo logo

13 IPEF members ink clean fair economy agreements India to sign after domestic approval

The Week | 6 June 2024

13 IPEF members ink clean fair economy agreements India to sign after domestic approval

by PTI

New Delhi, Jun 6 (PTI) The government on Thursday said 13 IPEF (Indo-Pacific Economic Framework for Prosperity) bloc members have signed fair and clean economy agreements, while India will ink the deal after getting domestic approval.
"India did not formally sign these agreements as domestic approval processes are still underway and will be completed after the formation of the new government," the commerce ministry said in a statement.
The government formation process in the country is on as the Lok Sabha elections got over this week.
These agreements, talks for which concluded in November last year, were signed in Singapore. Trade ministers and senior officials of the 14 member countries have gathered in Singapore for the ministerial meet. The Indian delegation was led by Commerce Secretary Sunil Barthwal.
The 14-member IPEF bloc was launched jointly by the US and other partner countries of the Indo-Pacific region on May 23, 2022, in Tokyo. Together, they account for 40 per cent of the world’s economic output and 28 per cent of trade.
The framework is structured around four pillars relating to trade, supply chains, clean economy and fair economy. India has joined all the pillars except the trade.
Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, the US, and Vietnam are members of the bloc.
On November 14, 2023, the IPEF declared a substantial conclusion of negotiations for a Clean Economy, Fair Economy, and the overarching agreement on the Indo-Pacific Economic Framework for Prosperity.
After that, the IPEF partners completed a legal review of the text for these agreements and domestic approval processes.
"Today, IPEF members signed these agreements which are first-of-their-kind approaches to addressing 21st-century challenges and strengthening economic engagement across a critical region. India actively participated in the signing proceedings and the ministerial deliberations," it said.
These agreements will enter into force after at least five IPEF partners complete their internal legal procedures for ratification, acceptance or approval.
Agreement on a clean economy intends to accelerate efforts of IPEF partners’ towards energy security and transition, climate resilience and adaptation, GHG (greenhouse gas) emissions mitigation ; find/develop innovative ways of reducing dependence on fossil fuel energy ; promote technical cooperation, workforce development, capacity building, and research collaborations ; and collaborate to facilitate development, access, and deployment of clean energy and climate-friendly technologies.
This agreement will facilitate investments, concessional financing, joint collaborative projects, workforce development and technical assistance.
Further, the agreement on fair economy intends to create a more transparent and predictable business environment which can spur greater trade and investment in the markets of member countries ; enhance efforts to prevent and combat corruption by strengthening anti-corruption frameworks, support efforts to improve tax transparency and exchange of information for tax purposes between competent authorities.

 source: The Week