ECONOMIC ministers from the United States and 13 Indo-Pacific countries launch negotiations on Thursday on Washington's first major pan-Asian trade engagement effort in nearly a decade, but this time any deal won't cut tariffs.
The Indo-Pacific Economic Framework talks in Los Angeles will seek to define a sweeping platform for market-driven economies to engage on trade and data flows, environmental and labor standards, supply chains and anti-corruption efforts.
The negotiations will be led by U.S. Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo. President Joe Biden launched the Indo-Pacific initiative in May during a trip to Tokyo, but some critics questioned its value to participating countries.
NOT TPP 2.0
Washington has lacked an economic pillar to its Indo-Pacific engagement since former president Donald Trump quit the 12-country Trans-Pacific Partnership trade deal (TPP) in 2017, leaving the field open to China to expand its regional influence.
More than two years of TPP negotiations led to an agreement in 2015, but the U.S. Congress failed to ratify it as tariff-cutting free trade deals fell out of favor, blamed for draining jobs and investment to low-wage countries.
Biden's trade chief Tai also has shunned new trade deals, focusing a number of negotiations with the European Union instead on labor, regulation and other non-tariff issues.
The talks will include ministers from Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and Vietnam. Together with the United States the participants represent some 40% of global GDP.
But it was unclear whether all of the countries would participate in all four of the negotiation streams: trade, labor and digital standards; clean energy and decarbonization; supply chain resilience; and tax and anti-corruption efforts. To secure broad participation, the countries could choose among those "pillars."
The talks come as the China-led Regional Comprehensive Economic Partnership Free trade deal launched in January, cutting tariffs for many of the IPEF participants. The surviving TPP countries also have launched a limited trade pact.
A senior Biden administration official told reporters on Wednesday that the IPEF platform was not meant as an alternative to trading with China.
"This initiative is really about the U.S. having an affirmative economic agenda in the region," the official said. "It's about engaging the economies in the Indo-Pacific in their own right, this isn't not a choice between the United States and China."
Lori Wallach, head of Rethink Trade, a group advocating against corporate influence in trade policy, applauded the decision not to offer tariff cuts, but questioned whether it could deliver benefits for workers.
"Three decades of 'hyperglobalization' implemented by these deals already had made the old trade model politically toxic," Wallach said in a statement. "Then the COVID-revealed supply chain crisis fueled even broader demand for a new approach that reverses the concentration of production of goods and services on which we all rely in too firms in too few countries."
Reuters
Thu Sep 08 2022
The negotiations will be led by US Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo (not in pic). - REUTERS/Filepic
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.