US on May 23 announced that the new economic grouping for the Indo-Pacific, labelled as the Indo-Pacific Economic Framework (IPEF) will involve at least 13 Asia-Pacific countries that account for 40% of the world’s gross domestic product. United States, India, Japan and South Korea, and the 13 members of the framework will include Australia, Brunei, Indonesia, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam that represent an estimated 40% of the world’s economy.
The new trade pact is aimed at countering China’s dominance, and affirming American economic influence in the Indo-Pacific region. It comes less than five months after China signed Regional Comprehensive Economic Partnership (RCEP), an agreement between the member states of the Association of Southeast Asian Nations (Asean) and its free trade agreement (FTA) partners. Beijing first introduced the free trade pact at the 19th ASEAN…
