IPEF First In-Person Meeting Concludes: "Agreed to Improve Labor Conditions and Promote Sustainability"

[Image source=AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] The 14 participating countries of the Indo-Pacific Economic Framework (IPEF), including the United States and South Korea, have agreed on detailed negotiation agendas.

The U.S. Department of Commerce and the Office of the United States Trade Representative (USTR) announced that at the IPEF ministerial meeting held in Los Angeles from the 8th to the 9th (local time), a statement was adopted outlining negotiation goals in four major areas: trade, supply chains, clean economy, and fair economy. IPEF is a multilateral economic cooperation body launched by the U.S. to curb China's economic influence.

Commerce Secretary Gina Raimondo said, "The first in-person IPEF meeting was clearly a success," adding, "The 14 countries gathered to establish plans that create economic opportunities for all participants, improve labor conditions, and promote sustainability."

The participating countries agreed to discuss trade measures that protect labor rights based on the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work and promote sustainable and inclusive growth. They also agreed to seek activation of digital trade, including secure cross-border data flows and responsible development and use of emerging technologies. They decided to designate key items critical to national security and health and promote investments to strengthen related supply chains.

If participating countries experience significant supply chain disruptions, they will seek ways to mitigate negative impacts together through information sharing and other means. The countries recognized the importance of a rules-based multilateral trading system centered on fair and open markets and the World Trade Organization (WTO), reaffirming their commitment to it.

They also agreed to explore ways to expand the adoption of clean energy technologies and reduce greenhouse gas emissions. Considering developing countries, they plan to discuss inter-country technological cooperation necessary to activate the clean economy.

Additionally, they agreed to comply with the United Nations Convention against Corruption and the Financial Action Task Force (FATF) standards, and to improve information sharing and transparency related to tax administration.

The USTR stated that IPEF aims to improve the resilience, sustainability, inclusiveness, growth, fairness, and competitiveness of participating countries' economies and contribute to regional cooperation, stability, prosperity, development, and peace.

While the U.S. is evaluated to have promoted IPEF to counter China in the Indo-Pacific region, the statement did not explicitly mention China. As this was the first ministerial meeting and many other participating countries depend on the Chinese economy, it appears they sought to avoid overtly provoking China.

The statement included the names of 14 countries: the United States, South Korea, Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. These 14 countries account for 40% of the world's total GDP and 28% of goods and services trade.

This content was produced with the assistance of AI translation services.