Tuesday, June 18, 2024

Indo-Pacific prosperity framework negotiations begin

Trade and Export Growth Minister, Damien O’Connor, has joined ministerial representatives from 13 economies across the Indo-Pacific region to launch negotiations on the Indo-Pacific Economic Framework for Prosperity (IPEF).

The IPEF, initiated by the US, involves a diverse group of regional economies and will deepen regional economic, trade and climate cooperation, Mr O’Connor said.

“Continuing our export growth is part of our Government’s economic plan to protect New Zealand’s economy from the sharp edges of a global downturn,” he 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.”

Minister O’Connor said IPEF presents an important opportunity to establish new structures to improve the flow of goods and services and drive climate action.

“We have been working hard alongside other IPEF partners since May to scope the four pillar framework covering trade, supply chains, clean economy, and fair economy issues.”

“With the scope of the framework now established, New Zealand looks forward to negotiating meaningful commitments and cooperation measures with other IPEF partners. Our goal is to provide valuable opportunities for New Zealanders in ways that align with our values and economic priorities.”

IPEF is a novel type of agreement, and as such will provide new channels of collaboration amongst regional economies, the Minister said. It covers new ground on modern issues such as the digital economy and accelerating climate action.

“I am particularly pleased to see a strong overlap between the underlying objectives of IPEF and New Zealand’s Trade for All Agenda as well as our Trade Recovery Strategy 2.0,” Mr O’Connor said.

“Sustainability, inclusivity and resilience are embedded throughout the IPEF, which is what makes the Framework particularly attractive for New Zealand.

“I commend the leadership of the United States in moving the IPEF agenda forward, and also thank the other IPEF partner governments for the constructive discussions held here in Los Angeles.

“In moving to the negotiation stage of IPEF, we have a unique opportunity to work together on deepening regional economic integration,” he said.

The Indo-Pacific Economic Framework Ministerial statements launched by participating governments can be found here and here.

Further information can be found on the Ministry of Foreign Affairs and Trade website: mfat.govt.nz/en/ipef.

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