India, US, 12 Other Indo-Pacific Nations Conclude Negotiations on Fair, Clean Economy Agreements

India, the United States, and 12 other members of the Indo-Pacific Economic Framework for Prosperity (IPEF) have announced the conclusion of negotiations on fair and clean economy agreements. The announcement was made at the IPEF ministerial meeting in San Francisco, California, on November 16.

Key Points of the Agreements

The IPEF Clean Economy Agreement covers a range of issues critical to transitions to clean economies, including efforts towards energy security and transition, climate resilience and adaptation, greenhouse gas emissions mitigation, and the promotion of sustainable livelihoods and just transition.

The IPEF Fair Economy Agreement is committed to working together to enhance fairness, inclusiveness, transparency, the rule of law, and accountability in their economies to improve the trade and investment environment in the Indo-Pacific region.

Significance of the Agreements

The proposed agreements will help to promote sustainable growth and success for all IPEF partners.

They will also increase investment flows to the region to address the acute need for financing for climate-related infrastructure, technologies, and projects.

The agreements will also enhance efforts to prevent and combat corruption, including bribery, and support efforts to improve tax transparency and the exchange of information, domestic resource mobilisation, and tax administration.

Next Steps

The member countries will now undertake the necessary steps, including further domestic consultations and a legal review, to prepare the final texts of the agreements.

Once finalised, the proposed agreements will be subject to IPEF partners domestic processes for signature, followed by ratification, acceptance, or approval.

The conclusion of negotiations on the IPEF Clean Economy Agreement and the IPEF Fair Economy Agreement is a significant step forward for the Indo-Pacific region. The agreements will help to promote sustainable growth, increase investment flows, and enhance fairness and transparency in the region.