logo logo

Raimondo: Three IPEF pillars by November

International Trade Today | 26 July 2023

Raimondo: Three IPEF pillars by November

Commerce Secretary Gina Raimondo said yesterday she is looking to finalize the three pillars of the Indo-Pacific Economic Framework under her charge by November.

Ms. Raimondo has jurisdiction over the supply chains, anti-corruption and infrastructure and
decarbonization pillars. US Trade Representative Katherine Tai is in charge of the trade pillar.

The 14 IPEF member countries announced they have reached an agreement in principle on the supply chains pillar in May.

Speaking to the Wilson Center, Ms. Raimondo said she is “determined” to complete all three
pillars in time for the Asia Pacific Economic Cooperation forum summit scheduled to take place in Seattle in November.

The United States is hosting APEC this year. “The region wants to see concrete deliverables,” she said.

While traditional US free trade agreements “aren’t in favor at the moment, the United States
must be present in the Asia Pacific, according to Ms. Raimondo.

IPEF is more specific than a traditional trade agreement, allowing participating countries to
move quickly on issues of key importance, she said. While there is no legal enforcement mechanism for the IPEF, member countries that do not abide by the agreement will not receive the benefits. For example, the supply chain pillar includes creation of a supply chain council that will facilitate discussion, encourage supply chain integration and deal with problems and disputes as they emerge. There is an incentive for countries to participate in the council.

Similarly, by signing up to certain standards in the anti-corruption pillar, countries will attract
more foreign investment. Participants in the infrastructure and decarbonization pillar will receive US support in developing projects.

On another issue, Ms. Raimondo confirmed that she plans to travel to China later this summer.

There is criticism of the Administration’s decision to resume engagement with Beijing, but Ms. Raimondo said the United States can do business with China without undermining its national security.

“We need to trade where ever we can, but protect where we must,” she said.

Protestors interrupted Ms. Raimondo’s remarks as she began to speak, temporarily halting the program. The protestors chanted “end fossil fuels, Gina, end fossil fuels.”

 source: International Trade Today