After the U.S. pulled out of the Trans-Pacific Partnership (TPP), the Indo-Pacific Economic Framework for Prosperity (IPEF) was styled as the new anchor of U.S. trade policy in the region, with the lofty ambition of establishing the “rules of the road” for regional trade. For the most part, however, it has yet to match this ambition with substance. Beyond a supply chain agreement and an agreement to launch a framework for cooperating on hydrogen technologies, IPEF has yet to provide concrete deliverables for its members.
Some observers have noted that IPEF is not a traditional trade deal and should not be judged like one. However, the fact remains that without a new economic anchor, Washington risks ceding its leadership on trade issues and over-securitising its relationship with regional governments. Even as Washington expresses hope that a broader deal will be announced at the APEC summit in November, the stakes remain high.