Biden's Indo-Pacific pact: A 'slogan without a purpose'

US President Biden unveiled last week an economic bloc in Indo-Pacific to boost economic and trade relations with regional powers.

An extension of the anti-China policy that Washington has been pursuing for a long time, the initiative, officially named Indo-Pacific Economic Framework for Prosperity (IPEF), comprises a 14-member bloc that accounts for 40 percent of the world’s GDP.

But experts have been criticizing the US-led framework, saying that it is a product of poor economic policy.

Van Jackson, an international relations expert from Victoria University of Wellington called it “a slogan without a purpose.”

“This whole P.T. Barnum show around the framework is supposed to address that or show that we’re doing something about it, but when you peel back the onion none of the things that the region cares about are really there,” he told NBC News.

The member countries currently include Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Vietnam, and the US.

IPEF has been seen as Washington's latest step to prevent Beijing from using its economic power to force regional countries to undermine their sovereignty.

US President Joe Biden said that IPEF is “a vision for an Indo-Pacific that is free and open, connected and prosperous, and secure as well as resilient, where economic growth is sustainable and it’s inclusive.”

In total contrast with Biden's optimism, the trade deal has been met with reservations from prominent American business groups.

According to US media reports, more than 30 of these groups joined hands and sent a letter to Biden's administration, expressing concerns that the negotiations are leaving out traditional US trade priorities that are meant to support American exporters.

These priorities, as per the letter, include lowering tariffs on goods, limiting regulatory barriers to trade, and establishing stronger intellectual property protections.

The economic war between Washington and Beijing has been intensified over the issue of semiconductor supplies, as the US has been limiting the export of China-made chips for tech products.

Recently, Beijing also took a step to ban US-based semiconductor company Micron, which drew fierce criticism from the US.

China has expressed its concerns over US trade and economic policies on semiconductors and export controls.

More jobs for the US?

Following former President Donald Trump’s tough policies against China, the US invoked Section 301 of the Tariff Act of 1974, which allows the president to impose tariffs on imports.

Then-president Trump vocally supported a policy to corner China economically with more than $300 billion worth of tariffs. China has long called US tariffs unfair and has taken reciprocal steps to Washington's policy.

IPEF aims to create new jobs and opportunities for American companies and workers. However, other members are not so sure that they will be able to benefit from the same opportunities.

India is reluctant to join the US-led IPEF partnership’s Trade pillar due to concerns that it might affect its businesses and jobs.

Following the high US tariffs, many China-based suppliers rushed to move their businesses out of country.

Separately, it is aimed at enhancing the fight against climate crisis and expand job opportunities in clean energy sectors as well as reduce greenhouse gas emissions.

Strategic approach

This US-led initiative also aims to improve the governance of regional powers, including those accused of enabling anti-democratic practices.

Member nations will be in more frequent contact with the US and other regional nations, who will help to play a troubleshooting role among the countries.

IPEF will also help the US to strengthen its relations with its members and prevent regional countries to intensify their businesses with China.