The Indo-Pacific Economic Framework (IPEF): An Asean perspective

The Indo-Pacific Economic Framework was launched by United States President Biden in Tokyo on May 23, 2022. After former US President, Donald Trump decided to walk away from the Trans-Pacific Partnership, the US’s Indo-Pacific strategy lacked a certain geo-economic heft and that made it very less attractive to many Asean countries like Indonesia, Singapore, Malaysia. If we don’t join, we might be seen as less competitive compared with other countries.” There is obviously the fear among Southeast Asian countries that this will again require them to choose sides between the US and China and some analysts like, Ahmad Heri Firdaus of the Institute for Development of Economics and Finance, Indonesia said that, “We need to reiterate that joining IPEF won’t damage our trade with China. Indonesian Trade Minister, Muhammad Lutfi who attended the virtual launch event stated, “going forward, the framework must benefit all the countries involved, remain inclusive and beneficial in the long term, not obstruct development plans in the region as well as work harmoniously with existing frameworks like the Asean Outlook on the Indo-Pacific.” Indonesia’s trade ministry’s deputy director for Asean free trade negotiations, Ranitya Kusumadewi, has mentioned that “Indonesia is keen to team up with the Biden administration on the digital economy, supply-chain security and gradual energy transitions.” Though market access is not guaranteed under the IPEF framework, but Southeast Asian analysts like Yose Rizal Damuri, executive director of the Jakarta-based Centre for Strategic and International Studies, are hopeful that “the US will try to lure Indo-Pacific nations by giving monetary aid for development projects.” Ms Hang, from the Vietnamese ministry of foreign affairs, believes that the “IPEF, with the right orientation, bounds to promote a positive and effective economic environment that brings practical benefits to the people as well as security and peace for the region as well as globally. Malaysian prime minister, Datuk Seri Ismail Sabri Yaakob At the virtual launch event, department of trade and sndustry secretary Ramon M Lopez reiterated, “ the Philippines acknowledged the general alignment of the broad themes of the IPEF in advancing resilience, sustainability, inclusiveness and competitiveness and the Philippines’ economic and development priorities.