TOKYO President Joe Biden has announced that 12 countries have joined a new trade pact that the White House says will help the United States work more closely with Asian economies on issues such as supply chains, digital trade, clean energy and anti-corruption efforts.
Signatories joining the United States in the Indo-Pacific Economic Framework are Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore , Thailand and Vietnam. Together with the United States, they represent 40% of world GDP.
The countries said in a joint statement that the pact will help them collectively prepare our economies for the future following the disruption caused by the coronavirus pandemic and Russia’s invasion of Ukraine.
Critics say the framework has gaping flaws. It does not offer incentives to potential partners by lowering tariffs or giving signatories better access to US markets. These limitations may not make the US framework an attractive alternative to the Trans-Pacific Partnership, which grew further after the US bailout.
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