The Strategic Shift of U.S. Economic Framework Toward Asia Pacific: From TPP to IPEF

Abstract

The Indo-Pacific Economic Framework for Prosperity (IPEF) represents a significant pan-regional economic endeavor by the United States in the Indo-Pacific region following its departure from the Trans-Pacific Partnership Agreement (TPP) in January 2017. The primary objective of the IPEF is to enhance and consolidate American economic influence within the Indo-Pacific region. One of the TPP objectives encompassed this aspect. The four critical pillars of IPEF are Trade; Supply Chains; Clean Economy; and Fair Economy. Member states can choose to participate in different areas as they wish, without committing to all areas. However, the accord's true efficacy is still in doubt because there are no legally enforceable trade agreements or processes. Today, the United States still has certain challenges competing in the Asia-Pacific area for geoeconomic benefits. The paper investigates the shift in U.S. economic policy towards the Asia-Pacific region, specifically analyzing the transition from the TPP to the IPEF. The research primarily concentrates on the fundamental aspects, distinguishing features, consequences, limitations, and prospective advancements of the IPEF.