On Thursday, President Joe Biden of the United States praised a recent economic deal between 14 countries in the Asia Pacific region. The agreement aims to combat China’s economic dominance in the region and was signed by leaders during a summit of regional economies. This agreement, while not a formal trade deal, aims to tackle important issues such as potential shortages in semiconductors by strengthening supply chain resilience.
According to a statement released by 14 leaders, the aim of the new agreement is to enhance workers’ rights, improve our ability to address supply chain disruptions, intensify cooperation in transitioning to sustainable economies, and fight against corruption while also enhancing tax administration efficiency.
During his speech at the Asia-Pacific Economic Cooperation summit in San Francisco on Thursday, Biden recognized that there was a lack of agreement among negotiators regarding a crucial aspect of the Indo-Pacific Economic Framework from last year.
“We have more tasks ahead, but we have made significant advancements,” he stated. “We have efficiently achieved agreement on three pillars of the IPEF in a short period of time.” The IPEF consists of four main components: trade, supply chains, clean energy and infrastructure, and tax and anti-corruption.
On November 16, 2023, President Joe Biden of the United States gave a toast during the heads of delegation dinner at the Asia-Pacific Economic Cooperation summit, which took place at the Legion of Honor Museum in San Francisco.
Biden has also introduced a plan to collaborate with emerging companies in order to secure funding. This initiative is modeled after the U.S. Partnership for Global Infrastructure and Investment, which is viewed as America’s response to China’s Belt and Road Initiative.
During the presentation, Biden also stressed the significance of the American private industry.
According to Biden, my colleagues have stated multiple times that this task cannot be completed without a significant amount of private sector funding. This funding is necessary in order to efficiently acquire and establish a strong foundation for future investments. The plan is to generate a series of projects in collaborating countries and then pair them with private sector financing. This will assure the private sector investors that their investments will adhere to the highest standards. It is not sufficient to rely solely on government investment. We must also rally private investment.
The new economic deal is being criticized for not including provisions for market access.
Indonesian CEO Anindya Bakrie stated to VOA at the summit that a country like ours must have minimum market access.
According to Joshua Kurlantzick, a senior expert on Southeast Asia at the Council on Foreign Relations, the majority of Southeast Asian countries have a lukewarm response to the agreement.
According to him, the main point is that the US is not providing market access in IPEF and this is not a trade deal. He also pointed out that Southeast Asian countries can compare this to other trade deals that have been implemented in Asia in the past seven years. These deals involve China, South Korea, Japan, and other major economies, with ASEAN playing a central role.
On November 16, 2023, President Joe Biden addressed the Asia-Pacific Economic Cooperation summit in San Francisco.
He stated that they would not outright reject the United States’ involvement with IPEF over the past few years. Instead, they are friendly and desire a stronger U.S. security presence.
Siobhan Das, the executive director of the American Malaysian Chamber of Commerce, had a more optimistic perspective.
She stated, “I am confident that it has already been a success.” “For the past 18 months, 14 nations have been engaging in dialogue with each other- it’s hard to argue that it hasn’t been successful.”
On Thursday, Zack Cooper, an expert on U.S. strategy in Asia from the American Enterprise Institute, shared with VOA that during a photo opportunity where the 14 leaders were seen smiling and posing, it was widely acknowledged that the Indo Pacific economic framework is likely the most that the Biden administration can achieve at this time.
“He stated that their acceptance of IPEF and the current version provided at APEC, which lacks trade inclusion, does not necessarily indicate contentment. Therefore, it may be deemed as a better option than having no solution at all.”
Source: voanews.com
