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Indo-Pacific Economic Framework

Date: 23 May 2022 Tags: India & World


US President Joe Biden is expected to launch Indo-Pacific Economic Framework (IPEF) in Tokyo.



IPEF is the much awaited policy of the Biden administration. He will launch the policy during the East-Asia trip.



  • The policy was first announced by President Biden in October 2021 East Asia Summit, where he expressed intention of working with like-minded partners.

  • The IPEF will contain various modules and countries have to sign up to all of the components within a module, but do not have to participate in all modules.

  • There will be no market access commitments such as lowering tariff barrier, which is usually needed for trade agreements.


Modules of IPEF

  • Trade facilitation

  • Standards for the digital economy and technology

  • Supply chain resiliency

  • Decarbonization and clean energy

  • Infrastructure

  • Worker standards



  • The IPEF will help US regain credibility in the region after it pulled out of the Trans Pacific Partnership (TPP). 

  • The move would help US counter aggressive trade commitments made by China under TPP and RCEP groupings.


Concerns for India

  • The aspects of the policy directly conflict with India’s stated position, especially regarding cross-border data flow.

  • There is a prohibition on the levying of customs duties on digital products distributed electronically.

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