They include the United States, Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam, but not China.
The US wants to use it to diversify its supply chains away from China towards its allies and create US-style rules in a region encompassing the Indian and Pacific Oceans and extending from the east of Africa to the west of the United States.
enable the United States and our allies to decide on rules of the road that ensure American workers, small businesses, and ranchers can compete in the Indo-Pacific.
And the US is not involved in the two other big regional trade agreements involving IPEF members including Australia:
There is still strong bipartisan US Congressional opposition to legally binding agreements like the CPTPP. This means in negotiating IPEF the US will not offer increased market access to Australia or other member countries.
The “four pillars” of the framework are
This means the IPEF will offer no immediate trade benefits for Australia or other countries, but for developing countries it will offer the prospect of US energy and other projects as an alternative to China’s One Belt One Road initiative.