The United States and 13 other countries participating in an economic initiative for the Indo-Pacific region inked agreements on two of the initiative's three remaining pillars -- promoting clean energy and implementing proper taxation -- at their ministerial talks held in Singapore on Thursday.
These areas are among the four pillars of the Indo-Pacific Economic Framework, known as IPEF, which the United States launched in May 2022 as an apparent counter to China's rise. An agreement on supply chain resilience, another pillar, was signed in November and took effect in February.
The Clean Economy Agreement and the Fair Economy Agreement were signed Thursday by U.S. Commerce Secretary Gina Raimondo, Singapore Trade and Industry Minister Gan Kim Yong, Japanese trade minister Ken Saito and ministers of other member countries.
Under the Clean Economy Agreement, the countries will enhance efforts to accelerate transitions to sustainable economies with the aim of achieving net-zero emissions, according to a statement issued by Singapore's trade ministry.
The governments and private sectors of the participating countries will invest over $23 billion in infrastructure projects across various areas, including energy, agriculture and waste management.
The Fair Economy Agreement will address proper taxation coupled with anti-corruption measures by accelerating efforts to fight financial crimes, such as money laundering and terrorism financing.
The countries had reached substantial conclusions on the two agreements in November in San Francisco.
Concerning an agreement on trade, the final pillar, the outlook remains uncertain, partly due to divisions over digital trade, making it difficult to reach a consensus.
IPEF is an endeavor by the administration of U.S. President Joe Biden to pursue deeper economic engagement in the rapidly growing Indo-Pacific region, where China has been expanding its influence. However, it differs from traditional free trade agreements as it does not involve tariff-cutting commitments.
The initiative represents about 40 percent of global gross domestic product. It groups Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, the United States and Vietnam.
