“Economic frameworks” are not free trade agreements

US engagement with Asia on trade and economic issues have stepped up in recent weeks. Can the United States successfully reengage with key trade partners in Asia if market access is off the table? In mid-May, a rescheduled summit with ASEAN nations in Washington DC led to mixed outcomes, Politico reports, although it did lead to the launch of the Indo-Pacific Economic Framework (IPEF) agreement, a new effort to engage in the absence of renewed trade negotiations. To win broader support, the Biden Administration had to water down its initial statement, explains the Financial Times. The announcement of the agreement and its dynamics are covered by Politico while the Center for Strategic and International Studies unpacks the launch.

The region’s reaction is mixed too. Malaysia welcomes the plan as a good beginning, per Reuters, but it’s a tough sell overall in Asia, says Al Jazeera. In an interview with Nikkei Asia, Singapore’s Prime Minister Lee Hsien Loong urges for a balance between the US and China. Fiji becomes the first Pacific Island nation to join the IPEF.

Mentioned Publications

U.S., EU hold off hitting China’s industrial policies, ASEAN summit emits mixed signals on trade – Gavin Bade, Politico Weekly Trade, 16 May 2022
A rescheduled US-ASEAN summit leads to questions about US commitment to the region and its openness to engaging in trade.
Fact Sheet: U.S.-ASEAN Special Summit in Washington, DC – The White House, 12 May 2022
Joe Biden waters down Indo-Pacific Economic Framework to win more support – Demetri Sevastopulo and Kana Inagaki, Financial Times, 20 May 2022
What kind of agreements can we expect the US-led IPEF to produce?
12 Asian nations join negotiations on Biden's signature economic initiative for the region – Stephen Overly, Politico, 23 May 2022
US President Biden launches the Indo-Pacific Economic Framework.
Statement on Indo-Pacific Economic Framework for Prosperity – The White House, 23 May 2022
Unpacking the Indo-Pacific Economic Framework Launch - Aidan Arasasingham, Emily Benson, Matthew P. Goodman, and William Alan Reinsch, Center for Strategic and International Studies, 23 May 2022
CSIS provides a useful summary of the IPEF proposal and the current state of play.
Malaysia says US Indo-Pacific economic plan only a 'good beginning' – Reuters, 15 May 2022
Malaysia welcomes the IPEF proposal but sees more immediate economic opportunity in RCEP.
‘Difficult to believe’: Biden’s economy plan a tough sell in Asia – Andrew Haffner, Al Jazeera, 20 May 2022
The Biden Administration faces a tough sell in convincing Asian trading partners to commit to the IPEF.
Singapore to join Biden Indo-Pacific pact, back China's CPTPP entry: Lee – Dylan Loh, Nikkei Asia, 23 May 2022
Singapore seeks a balance between the US and China in its trade relations.
Fiji joins US-led Indo-Pacific economic initiative on eve of Chinese visit – Demetri Sevastopulo, Kathrin Hille, and Nic Fildes, Financial Times, 27 May 2022
Fiji will become the 14th country to sign onto the IPEF and the first Pacific Island nation.