New Zealand joins Indo-Pacific economic plan
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New Zealand has joined up with partner governments from across the Indo-Pacific region to begin the next phase of discussions towards an Indo-Pacific Economic Framework for Prosperity (IPEF).
The Indo-Pacific Economic Framework, which US President Biden initially proposed in October 2021, aims to deepen regional economic integration and boost economic cooperation to create a more prosperous and resilient Indo-Pacific.
“New Zealand and the wider region will benefit from deepened economic engagement by the US, and I’m pleased that President Biden has driven this initiative forward,” Prime Minister Jacinda Ardern said.
“As the world recovers from COVID-19 it is critical that trade and economic links are opened up and structures are put in place to provide greater security against future shocks.”
The NZ Prime Minister stated that the Indo-Pacific region is of the utmost importance for New Zealand’s strategic and economic interests. As such, the Framework is an opportunity to enhance the country’s strong partnerships with major regional economies as it reconnects with the world.
The initiative, as a non-traditional agreement, is said to provide new channels of collaboration in ways not limited to trade. In particular, it will support collaboration on climate action and will be designed to focus on sustainability and inclusivity, principles that the Prime Minister says are fundamental for New Zealanders.
“This work sits alongside our comprehensive trade and growth strategy, that includes unlocking the full benefits of the CPTPP, securing a free trade deal with the European Union and supporting businesses to grow exports across markets,” she said.
Trade and Export Growth Minister Damien O’Connor said he was pleased that some of the most pressing issues facing the global economy will be discussed further between IPEF partners, including harnessing the digital economy, decarbonising economies, and making supply chains more resilient.
He said further discussions amongst participating economies will take place in due course to flesh out the details of the Framework.
The Indo-Pacific Economic Framework for Prosperity is said to be a loosely defined economic bloc meant to counter China’s dominance and reassert American influence in the region, bringing the US together with regional powerhouses such as Japan, South Korea and India to establish new rules of commerce in the Indo-Pacific and offer an alternative to Beijing’s leadership.
Source: Inside Government NZ
Eliza is a content producer and editor at Public Spectrum. She is an experienced writer on topics related to the government and to the public, as well as stories that uplift and improve the community.
