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Wednesday, April 17, 2024

India Signs Agreement with IPEF Members to Reduce Dependence on China

India has inked an agreement with the United States and 12 other members of the Indo-Pacific Economic Framework for Prosperity (IPEF) to decrease its reliance on China and counter the risks of economic disruptions caused by supply chain shocks, as per the commerce ministry’s announcement on Wednesday.

The agreement, signed in San Francisco by India’s Union Minister for Commerce and Industry, Piyush Goyal, and US Trade Secretary Gina Raimondo, aims to provide various benefits. These include the potential shift of production centers in critical sectors and the mitigation of economic risks arising from supply chain shocks. The move is part of a broader strategy by IPEF member nations to reduce their dependence on China and proactively address potential challenges in the supply chain.

The pact also emphasizes the need for supply-chain diversification, mobilization of investments, deeper integration of India into global value chains, support for Micro, Small, and Medium Enterprises (MSMEs), and the creation of a seamless regional trade ecosystem facilitating the flow of Indian products.

Piyush Goyal highlighted the significance of the IPEF supply chain resilience agreement, emphasizing its role in fortifying global supply chains and promoting adaptability, stability, and sustainability. He urged the early implementation of cooperative efforts under IPEF, including the proposed bio-fuels alliance suggested by India.

During the IPEF meeting, Goyal discussed the substantial progress made by IPEF partners on Pillar-III (Clean Economy) and Pillar-IV (Fair Economy). Additionally, he held bilateral meetings with counterparts from Malaysia and Indonesia, focusing on trade, commerce, investment, business engagements, WTO matters, and other mutual interests. The minister urged the swift conclusion of the ASEAN-India Trade in Goods Agreement (AITIGA) review during interactions with counterparts from ASEAN countries.

IPEF, launched in Tokyo in May 2022, includes countries such as Australia, Brunei Darussalam, Fiji, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. The collaboration aims to enhance economic cooperation and resilience in the Indo-Pacific region.

For more updates stay tuned to FELA News!

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