Indo-Pacific Economic Framework for Prosperity

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Overview:

Recently, the union Minister of Commerce & Industry joined the Indo-Pacific Economic Framework for Prosperity (IPEF) Virtual Ministerial Meeting.

About Indo-Pacific Economic Framework for Prosperity

  • It is a regional arrangement to build cooperation and economic integration in the Indo-Pacific region.
  • It was launched in May 2022.
  • This framework is intended to advance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness for member economies. 
  • IPEF will seek to complement and build on existing regional architecture and support the global rules-based trading system.
  • Member countries: It has 14 regional partners – Australia, Brunei, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the United States, and Vietnam.
  • The economic framework broadly rests on four pillars: Trade, Supply chain resilience, Clean Energy, Decarbonization, and Infrastructure Taxes and anti-corruption measures
  • The IPEF is not a Free Trade Agreement (FTA), but it allows members to negotiate the parts they want to.
  • India and IPEF:
    • India has been actively participating in the IPEF, but not in all pillars.
    • India has decided to opt out of the trade pillar of the IPEF as most issues promoted by the IPEF do not align with India's trade policies.

Q1) What is decarbonisation?

Decarbonisation is the term used for removal or reduction of carbon dioxide (CO2) output into the atmosphere. Decarbonisation is achieved by switching to usage of low carbon energy sources.

Source: Union Minister Shri Piyush Goyal joins Indo-Pacific Economic Framework for Prosperity (IPEF) Virtual Ministerial Meeting