India and 12 countries join the new Indo-Pacific trade pact

The Indo-Pacific Economic Framework (IPEF) was launched by United States President, Joe Biden, on Monday, and is being joined by 12 other countries including India. This is Washington’s answer to the Trans-Pacific Partnership (TTP), its successor agreement, the Comprehensive and Progressive Agreement for TTP (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP).?

The collective framework is aimed at instilling deeper cooperation between India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Australia, Brunei, Vietnam, and the United States. Jointly these nations represent 40% of the world's GDP.

According to official documents, the framework includes four pillars -

• Connected economy: higher standards and rules for digital trade, such as crossborder data flows.
• Resilient economy: resilient supply chains that will withstand unexpected disruptions like the pandemic.
• Clean economy: targeting green energy commitments and projects.
• Fair economy: implementing fair trade, including rules targeting corruption and effective taxation.

Prime Minister Narender Modi, said “the announcement of the IPEF is a declaration of a collective desire to make the Indo-Pacific region an engine of global economic growth. India is keen to collaborate with partner countries under the IPEF and work towards advancing regional economic connectivity, integration, boosting cross border trade and investment within the region.” In a joint statement, each country announced that the objective of the Pact is to collectively help each nation 'prepare their economies for the future.’

?India has been on a spree for trade agreements, with free trade agreements with Australia, Dubai and other upcoming trade agreements with the UK and European Union. India has put itself on a global trade map by joining IPEF, countering China’s belt and road initiative across Europe and Asia pacific.

Many drivers such as COVID-19, inflation, and Ukraine Russia conflict have crippled the economy worldwide with huge surges in prices, to stock market turbulence. To mitigate such shock waves, India aims to lessen its dependence on countries for imports and believes in “Atma Nirbhar” (self-reliance) and has come out to be a strong contender for the developed nations.

Free trade agreements allow India’s SMEs with great power tools to access global markets with minimal cost and huge margins. Crossborder is a huge asset for many traders. These trade agreements are directly beneficial for local traders, manufacturers, and other citizens that are aiming to sell their products across the globe.

Eunimart is one such catalyst for local traders for their crossborder journey, with AI-driven tools to omnichannel dashboards. Eunimart is a one-stop solution for ecommerce growth and has 25+ marketplaces across 100+ countries.?

?With new free trade agreements, Eunimart seeks to boost crossborder for local retailers.

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Ref :- TheIndianexpress.