A New Milestone in Sustainable Economic and Trade Development in the Indo-Pacific

The Clean Economy and Fair Economy Agreement aims for sustainable economic development and trade based on equity and clean energy.

The Clean Economy Agreement, one of the four main pillars of the Indo -Pacific Economic Framework for Prosperity (IPEF), came into effect on October 11. (Illustration photo. Source: Bnews)

The Clean Economy and Fair Economy Agreements, two of the four main pillars of the Indo- Pacific Economic Framework for Prosperity (IPEF), entered into force on October 11 and October 12, respectively.

The Clean Economy Agreement includes provisions for the 14 IPEF member countries to work towards accelerating the energy transition through efforts such as developing hydrogen energy, increasing the deployment of sustainable aviation fuels and trading clean electricity.

The Fair Economic Agreement also includes provisions to prevent corruption and improve transparency and efficiency in tax administration, such as strengthening whistleblower protections and introducing provisions to punish illegal activities in government procurement processes.

IPEF members will complete discussions on the two agreements in November 2023 at the 2023 Asia-Pacific Economic Cooperation (APEC) Summit Week in San Francisco, USA.

The Biden administration announced the IPEF in Tokyo in May 2022, aiming to strengthen economic ties with countries in the Indo-Pacific region. The 14 countries participating in the negotiations include the United States, South Korea, Japan, Australia, New Zealand, India, Thailand, Malaysia, Indonesia, Vietnam, the Philippines, Singapore, Brunei and Fiji.

The IPEF economic framework is divided into four pillars: trade, supply chains, clean economy and fair economy. Covering 40% of global Gross Domestic Product (GDP), IPEF is a new generation trade agreement that does not include tariff reduction commitments.

Source: https://baoquocte.vn/dau-moc-moi-trong-phat-trie-n-kinh-te-va-thuong-mai-be-n-vung-tai-an-do-duong-thai-binh-duong-289856.html