Facts for Prelims (FFP)
Context: India fears that a proposal by the US under the “supply chains” pillar of the IPEF could violate WTO rules and reduce policy space.
US proposal: All IPEF partner nations would be required to give advance notification of any changes to export regulations and tariffs.
India’s concern: Notifications are usually done only after measures are taken and not before. India has therefore sought industry inputs to protect its interests.
- It is an economic initiative launched by the US President Joe Biden on May 23, 2022.
- The framework launched with a total of 14 participating founding member nations in the Indo-Pacific region with an open invitation for other countries to join.
- The IPEF members represent 40% of the global GDP and 28% of the world’s trade.
- Analysts have compared it to the Trans-Pacific Partnership (TPP), which the US withdrew from in 2017.
The IPEF has four pillars:
- Trade, supply chains, clean economy, and fair economy.
- India has yet to take a call on whether to join the trade pillar, though it has joined the other three.