During his recent trip to Japan, President Joe Biden announced the creation of the Indo-Pacific Economic Framework. The framework seeks to deepen U.S. economic engagement in the region and strengthen our coordination with allies and partners to address the most important economic issues of the 21st century and deliver inclusive and sustainable growth. The Indo-Pacific Economic Framework includes the United States and 12 partners: Australia, Brunei, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. Together, these economies account for 40 percent of global GDP.
This Framework is designed to deliver prosperity for all people said President Biden:
“We’re writing the new rules for the 21st century economy that are going to help all of our countries’ economies grow faster and fairer. . . .Let’s start with new rules governing trade in digital goods and services so companies don’t have to hand over the proprietary technology to do business in a country.”
President Biden called for an effort to “eliminate bottlenecks in critical supply chains and develop early warning systems so we can identify problems before they occur.” He also stressed the need to pursue commitments to clean energy and decarbonization.
President Biden called for a fair economy, including an end to corruption, noting that that it may sap as much as 2 to 5 percent of global GDP. Moreover, the U.S. will seek commitments within the Indo-Pacific Framework to enact and enforce effective tax, anti-money laundering, and anti-bribery schemes.
The Indo-Pacific Economic Framework is one of the most significant international economic engagements that the United States has ever had in this region. This framework launch marks an important turning point in “restoring U.S. economic leadership in the region ” said U.S. Secretary of Commerce Gina Raimondo.
President Biden stressed that the key to success will be “the framework’s emphasis on high standards and inclusivity. This framework should drive a race to the top among the nations in the Indo-Pacific region.” He added that the “framework will be open to others who wish to join in the future.”
“The United States is deeply invested in the Indo-Pacific,” said President Biden. “We’re committed for the long haul, ready to champion our vision for a positive future for the region together with friends and partners.”