Hurricane forecasters know that occasionally, a storm that appears dead resurfaces with unexpected strength. The Biden administration’s Indo-Pacific Economic Framework for Prosperity (IPEF) might follow a similar trajectory.
Many commentators declared IPEF dead after last year’s ministerial meeting in San Francisco failed to reach an agreement on the initiative’s trade pillar. However, IPEF’s other three pillars—supply chain cooperation, the green transition, and anti-corruption—have continued and are now beginning to deliver tangible economic and foreign policy impacts.
Each pillar is dynamic, providing platforms for alliance-strengthening activities that could enhance relationships fostered by IPEF over time. This makes monitoring the initiative's progress crucial as its impact extends beyond trade flows or investment. As engagements increase and networks between IPEF collaborators grow, the alliance of IPEF countries will become more influential in the Asia-Pacific region.
Last week, ministers from the 14 IPEF countries—Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the United States, and Vietnam—met in Singapore. The U.S. delegation was led by Secretary of Commerce Gina Raimondo and included 22 leading American companies participating in IPEF’s inaugural Clean Economy Investor Forum. The forum aimed to accelerate sustainable infrastructure and climate-aligned investments in the region.
The meeting marked the first in-person convening of ministers since substantial negotiations concluded for the Clean Economy Agreement and Fair Economy Agreement and since signing the Supply Chain Agreement in November 2023. Ministers reviewed progress on these agreements' implementation and discussed work plans critical to demonstrating outcomes for IPEF.
Highlights from the event include:
- All 14 partners signed the IPEF Clean Economy Agreement, Fair Economy Agreement, and overarching Agreement on IPEF.
- Partners identified over $23 billion in priority infrastructure projects.
- The launch of the IPEF Catalytic Capital Fund with initial grant funding expected to catalyze up to $3.3 billion in private investment.
- HolonIQ announced “Indo-Pacific Climate Tech 100” to highlight climate technology companies from IPEF economies.
- Three new cooperative work plans were agreed upon covering emissions intensity accounting, e-waste urban mining, and small modular reactors.
- Secretary Raimondo announced that the IPEF Upskilling Initiative has delivered 10.9 million training opportunities far exceeding its original goal.
Additionally last month saw David Talbot named executive director of the Indo-Pacific Partnership for Prosperity—a collaboration aimed at supporting finalized IPEF pillars.
A new regional anti-corruption network was also established with support from various civil society organizations across ten Asia-Pacific countries underlining corruption as both an economic and legal issue.
Ministers agreed to hold virtual meetings of the Supply Chain Council and Crisis Response Network in July followed by in-person meetings later this year. The next step involves publicly identifying representatives to various councils within IPEF.
Some have dismissed IPEF due to its voluntary nature and lack of market access provisions; however it represents a new approach focusing on cooperation against common challenges such as climate change rather than competition among signatories.
IPEF includes economies accounting for 40 percent of global GDP potentially serving as a counterbalance to China’s influence in the region according to experts at Center for American Progress. More tangible results are needed ensuring this economic alliance endures requiring a whole-of-government approach particularly involving departments addressing supply chains climate change anti-corruption issues not confined within one agency alone
Continued progress depends on expanding leadership drawing expertise from multiple U.S departments alongside partner governments fostering an inclusive approach making it an alliance beyond just economics ministries
Whether recent announcements mark a lasting alliance defining Asia-Pacific remains uncertain but implementing efforts continue offering potential worth close observation