The annual QUAD summit in Tokyo will offer an opportunity to Joe
Biden to start building his trade legacy.
The first in-person meeting of the leaders of the United States,
Australia, Japan and India, termed QUAD is being held in Tokyo on 24 May. This
is the first in-person summit of these leaders after the outbreak of the
Russia-Ukraine war, worsening Sri Lankan economic crisis, and Australia getting
a new Prime Minister.
The security situation in the Indo-Pacific region has changed significantly
in the last decade and in the post-pandemic world, it becomes imperative for
these partners to further commit to an open, inclusive and resilient region.
The primary focus of this alliance is to thwart the increasing Chinese hegemony
in the region and globally, both
The Modi-Biden meeting in Tokyo will be the second face-to-face
meeting of both the leaders within a year; they met last in September 2021. The
meeting assumes increased importance, as it will be the first time the two
leaders meet in the midst of the on-going Russia-Ukraine crisis. The leaders
are likely to focus on trade and defence opportunities in partnership with
other countries in the Indo-Pacific, in the backdrop of the increasing Chinese belligerence;
however, this time around Biden may focus more on trade than defence.
Indo-Pacific Economic Framework-IPEF
The new plan unveiled by Biden called the Indo-Pacific Economic
Framework-IPEF, which his aides refer to as IPEF, is not a trade agreement in
the traditional sense. Though, it includes one ‘pillar’ related to trade,
besides incorporating other key areas like forging more resilient supply chains
– an initiative becoming rather the most important one after witnessing the
chaos in the global supply chains during the Covid-pandemic, besides promoting
clean energy and combating corruption and cyber security.
By focusing on the new framework, Biden has made clear his
intention of not re-joining the Trans-Pacific Partnership-TPP, an Obama-era deal,
which was not supported by a large number of US lawmakers. Since then the US
has been without a defined plan to engage with the south Asian region economically.
And in the meanwhile, China has secured several trade agreements with its
neighbours, and has sought to wield its economic influence globally through its
Belt and Road Initiative.
However, this may require delicately persuading countries to join - not
only staunch partners like Japan and South Korea but smaller nations,
particularly in Southeast Asia, who aren't as closely aligned with the United
States.
The IPEF rollout is expected to send across a strong signal that the
US is focused on pushing forward a strong economic policy for the Indo-Pacific
to counter China's aggressive strategy on trade in the region. The Indian stand
on the new initiative has not been made clear, but there are strong indications
that India may join it along with Australia, New Zealand, South Korea, Japan,
Singapore and the Philippines.
Chinese response
The US-led Indo-Pacific strategy is causing more and more strife and
concern not just globally, but especially among the countries in the
Asia-Pacific region, said Chinese State Councilor and Foreign Minister Wang Yi
on 22 May.
He said, the Indo-Pacific Strategy concocted by the US is called
"freedom and openness", but is keen on forming cliques; and aims to
"change China's surrounding environment" in an attempt to contain
China. Facts will prove that the so-called Indo-Pacific strategy is in essence
a strategy to create division, to incite confrontation and to undermine peace,
he added.
He stressed that like other countries in the region, China welcomes
initiatives that are conducive to strengthening regional cooperation, but
opposes attempts to create division and confrontation.
Which category does the US Indo-Pacific Economic Framework fall
into, he questioned, saying further that in line with WTO rules, the Regional Comprehensive
Economic Partnership agreement (RCEP) was launched, a regional cooperation
platform with ASEAN at the centre, and it has greatly promoted regional trade
and investment liberalisation and facilitation.
Indo-Japan ties
PM Modi held separate meetings on 23 May with a number of leading
Japanese corporate honchos, besides a roundtable with Japanese business leaders
and an interaction with the Indian community.
Modi’s pre-departure statement stressed focusing on issues-
regional like China and global like on going Russia-Ukraine war. It will be
first time that both leaders will be able to discuss the Ukrainian crisis in
person. The prime minister will also hold separate bilateral meetings with
Japanese PM Fumio Kishida and newly elected Australian PM Anthony Albanese.
PM Modi penned an op-ed on the vibrant relations between India and
Japan, coinciding with his Japan visit. He wrote, “Ours is a partnership for
peace, stability and prosperity. I trace the journey of our special friendship
which completes 70 glorious years. Closer India-Japan cooperation is vital in
the post-COVID world. Our nations are firmly committed to democratic values.
Together, we are key pillars of a stable and secure Indo-Pacific region. I am
equally glad that we are working closely in various multilateral forums as
well,” he added.
The meeting with PM Kishida will provide an opportunity for the two
leaders to carry forward their conversations from the 14th India-Japan Annual
Summit held in March, when PM Kishida visited India.
Though the Indo-Pacific Strategy of the Biden administration,
released in February, is widely believed to intend to build a wall of
containment around China, but this time around it may focus more on trade
issues.
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