On 10-15 December 2022, negotiators from 14 Indo-Pacific Economic Framework (IPEF) partner countries formally met for the first round of negotiations in Brisbane, Australia. The United States tabled text on the following: USTR on Pillar I (Trade) sub-topics: trade facilitation, agriculture, services domestic regulation, and transparency and good regulatory practices; the Department of Commerce on Pillar II (Supply Chains) and Pillar IV (Fair Economy: Tax and Anti-Corruption). Commerce also shared a concept paper for Pillar III (Clean Economy). USTR readout is available here.
There were conceptual discussions on the potential types of environment, labor, and digital economy related commitments & disciplines which could be included in the IPEF. Australia led the discussion on competition policy and co-chaired with New Zealand on inclusivity. Potential elements of a labor chapter within the trade pillar were discussed along with issues on labor rights and obligations, enforcement, emerging labor issues, cooperation, and consultation and dialogue mechanisms. Possible elements of the digital chapter, sustainable agriculture and non-tariff measure issues in agriculture, and how to build on the WTO Joint Initiative on Services Domestic Regulation to support the direction set out in the IPEF Ministerial statement were also discussed. Text-based discussions are expected to commence at the next Round.
India participated in the Trade Pillar negotiations as an observer and will host the next IPEF negotiating round from 8-11 February 2023 which will focus on pillars 2, 3, and 4. Ahead of this 2nd round, India Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal and U.S. Secretary of Commerce Gina Raimondo issued respective press releases on the December 20 virtual Ministerial Meeting on Economic Benefits for the Indo-Pacific Economic Framework for Prosperity.
