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1 1 (February 25, 2022)

handle is hein.crs/govefig0001 and id is 1 raw text is: Congressional * Research Service Informing the Iegist tive debate since 1914___________________ Biden Administration Plans for an Indo- Pacific Economic Framework Updated February 25, 2022 During the East Asia Summit in October 2021, President Biden announced plans for a U.S.-led Indo- Pacific Economic Framework (IPEF). In November, Secretary Raimondo and USTR Tai, who are to co- lead the initiative, held exploratory talks with Japan, Malaysia, Singapore, and South Korea during overseas visits, but no official negotiations have been launched yet. Questions remain over an IPEF's scope, potential participants, and the congressional role. In February 2022, the Biden Administration released its broader Indo-Pacific strategy, which said the IPEF would be launched in early 2022. An IPEF would be the Administration's first major trade and economic initiative in the region. Some Members of Congress, several business associations, and U.S. allies, such as Australia and Japan, have called for a more active U.S. trade policy in the Indo-Pacific, including U.S. leadership in regional trade agreements. Some stakeholders have recommended a prioritization of digital trade issues in particular. U.S. officials state that they do not envision the IPEF will take the form of a traditional trade agreement. In early February, a USTR official said the initiative will include different modules covering fair and resilient trade, supply chain resilience, infrastructure and decarbonization, and tax and anticorruption. Countries will have to sign up to all of the components within a module, but will not have to participate in all modules. The fair and resilient trade module will be led by USTR and include digital, labor, and environment issues, with some binding commitments, but the IPEF will not include market access commitments. The USTR official stated that congressional consultation will be critical but the agreement is envisioned as more of an Administrative arrangement. Seeking agreements that do not require congressional approval would limit the scope of potential IPEF commitments given Congress' constitutional authority to regulate U.S. foreign commerce. Trade Promotion Authority (TPA), which establishes U.S. trade negotiating objectives and allows for expedited congressional consideration of trade agreements under specific criteria, expired in July 2021, potentially complicating any congressional consideration of new trade initiatives that may require changes to U.S. law. Several U.S. business associations recently urged the Administration to conclude IPEF modules this year, and include binding commitments, such as on market access, and provisions for future expansion of commitments and participants. Other stakeholders identified specific commitments they support and urged the Administration to seek formal legislative approval to ensure the IPEF is binding and durable. Congressional Research Service https://crsreports.congress.gov IN11814 CRS INSIGHT Prepared for Members and Committees of Congress