AAIP Press Statement
DETROIT, MI - May 28, 2023 - The American Association of the Indo-Pacific (AAIP) supports the significant breakthrough made by the Indo-Pacific Economic Framework (IPEF) negotiators and ministers on Saturday. IPEF member economies reached a substantive agreement on the Supply Chain Pillar, marking a crucial juncture in the framework’s ambitious agenda to reach agreements this year.
The convening of an IPEF council and advanced supply chain platform that will monitor potential trade disruptions in real time represents a novel and forward-thinking approach to trade in the region. "This breakthrough fortifies the Indo-Pacific supply chain's resilience, ensuring the rapid response times necessary for a modern, interconnected global economy," said Jackson Cox, Interim President of AAIP.
As an integral element of the agreement, the platform will improve information sharing and responses to chokepoints, enhancing economic stability across the region. It will also incorporate high-level and technical input from the private sector.
“AAIP expects mechanisms for private sector input to be meaningful and sector-agnostic. It’s vital that all actors in the supply chain are included, from infrastructure to transport and trade finance,” Cox highlighted.
The success in Detroit reaffirms the U.S. commitment to economic engagement in the Indo-Pacific region and its important role in the region's economic growth.
Jackson Cox noted, “This is a clear signal of progress in the negotiations and gives U.S. businesses greater confidence in trade and investment in the region. AAIP will continue to play a constructive and supportive role through our IPEF Taskforce as the negotiations on the other IPEF pillars continues.”
AAIP is optimistic that the success in Detroit will set the tone for forthcoming meetings between IPEF economies, with another round of negotiations already set for July. The association believes that meaningful commitments to enhance regional trade and investment are of paramount importance.
Cox continued, "The next negotiating rounds are key to ensuring meaningful outcomes in the trade, clean economy, and fair economy pillars. Strong results in areas such as digital trade—which has broad implications for trade in all sectors, from financial services to transport—are vital.
“We are buoyed by this development, but governments need to ensure that the IPEF brings improvements to trade and investment and, therefore, has a positive impact on the businesses and workers of the region.”
For further information or to speak to AAIP’s experts, contact:
Jackson Cox, Interim CEO
Khalil Manaf Hegarty, Senior Policy Advisor
The American Association of the Indo-Pacific (americanindopac.com) is a membership-led organization that works to strengthen American business and investment in the Indo-Pacific region. AAIP does this through policy initiatives, ongoing engagement with policymakers in Washington, D.C., and the region, and close collaboration with other business associations. AAIP is registered in the United States as a 501c6 non-profit corporation. AAIP membership is only held by U.S.-headquartered companies and business associations.
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