India stays out of Indo-Pacific trade pillar

In News: India has for now opted to stay out of the Indo-Pacific Economic Framework’s (IPEF) trade pillar. The IPEF has four pillars with the member nations given flexibility to choose which pillars they want to be part of.

Indo-Pacific Economic Framework (IPEF)

• According to an insight paper on IPEF put out by the US Congressional Research Service, the IPEF is not a traditional trade agreement. Rather, it would include different modules (four pillars) covering:
  • fair and resilient trade,
  • supply chain resilience,
  • infrastructure and decarbonization, and
  • tax and anticorruption.
• Countries would have to sign up to all of the components within a module, but do not have to participate in all modules.

India and IPEF:

• India decided to join three pillars of IPEF
  • India has joined the supply chain, decarbonisation and infrastructure, and anti-tax and corruption pillars of the IPEF. However, it has decided to remain out of the trade pillar.

Reasons for India not joining the trade pillar:

• So far, official reason has not been given. However, trade experts say India may have some genuine concerns regarding certain aspects of the trade pillar that perhaps go beyond WTO obligations.

Must Read: Indo-Pacific Economic Framework

Source: Indian Express

Previous Year Question

Q.1) ‘Communications Compatibility and Security Agreement (COMCASA)’, recently seen in news relates to: (2022)

1. USA
2. European Union
3. SAARC
4. ASEAN