08/09/22

ASIA: Japan, U.S. eye launch of formal Indo-Pacific economic talks.

As published on english.kyodonews.net, Thursday 8 September, 2022.

Japanese trade minister Yasutoshi Nishimura and U.S. Commerce Secretary Gina Raimondo agreed Wednesday that the two countries will aim to launch formal negotiations under the Indo-Pacific economic initiative.

Nishimura and Raimondo held talks a day before ministers from 14 member countries of the Indo-Pacific Economic Framework, or IPEF, hold a two-day meeting in Los Angeles, the first in-person session of the U.S.-led grouping.

"We would like to build a framework capable of addressing challenges in the 21st-century economy, including supply resiliency and decarbonization, among others," Nishimura told reporters after the talks with Raimondo.

The Japanese and U.S. ministers also affirmed that cooperation and rules are essential in the framework to realize a high-quality and inclusive membership, according to Nishimura.

Following his meeting with Raimondo, Nishimura held talks with New Zealand's trade minister Damien O'Connor and reached a similar agreement, according to Nishimura.

The launch of the framework aspiring for high economic standards was announced during U.S. President Joe Biden's visit to Japan in May and is shaping up as a key part of his administration's strategy to engage with the fast-growing region where China is expanding its clout.

In the IPEF meeting, the member states are expected to discuss four pillars of the framework -- trade, supply chain resiliency, clean energy and decarbonization, as well as measures against tax avoidance and corruption -- in preparation for launching formal negotiations aimed at setting economic standards in the region.

Since IPEF is not a conventional trade deal, the issue of market access is off the table.

The ministers are likely to release a ministerial statement at the end of the meeting, including a list of countries participating in each of the four pillars.

In a demonstration of the framework's flexibility, members can choose to join any one or more of the pillars.

U.S. business leaders are looking for the Los Angeles meeting to deliver a roadmap that offers prospects for commercially-meaningful commitments on trade and supply chain issues of vital products such as semiconductors and critical minerals.

The 14 current IPEF members -- Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, the United States and Vietnam -- account for about 40 percent of world gross domestic product.