Malaysia hosted the 6th Round of the Indo-Pacific Economic Framework (IPEF) Negotiations in Kuala Lumpur to continue the momentum of the negotiations by IPEF countries before the next IPEF Ministerial Meeting.
Held from 15 to 24 October 2023, IPEF is an Economic Framework led by the United States and is currently being negotiated with 13 other countries namely Australia, Brunei Darussalam, Fiji, Philippines, India, Indonesia, Japan, Malaysia, New Zealand, Republic of Korea, Singapore, Thailand and Vietnam.
The IPEF Economic Framework is important for Malaysia as the country relies on international trade for economic growth. IPEF’s cooperation, among other things, emphasises the interconnectedness of the supply chain between member countries, which is important for the country’s economic growth. For the record, IPEF member countries represent 40 percent of the world’s Gross Domestic Product (GDP) and 28 percent of global trade in goods and services.
Malaysia’s involvement in the IPEF economic framework will showcase Malaysia’s preparedness to work together with all IPEF partner countries, especially with countries that Malaysia do not have an FTA with currently.
In this regard, the IPEF negotiations are expected to result in four separate Agreements for each of these pillars. The United States has also informed that only Pillar 1 agreement will be binding and subject to dispute resolution mechanism, while agreement for Pillars 2, 3 and 4 are non-binding.
The IPEF Economic Framework consists of four main pillars agreed by the IPEF Ministers on 8 and 9 September 2022 in Los Angeles, United States, which are:
(a) Pillar 1 – Trade;
(b) Pillar 2 – Supply Chain;
(c) Pillar 3 – Clean Economy; dan
(d) Pillar 4 – Fair Economy.
The Minister of Investment, Trade and Industry, Tengku Datuk Seri Utama Zafrul Aziz, highlighted that, “The hosting of the 6th round of IPEF negotiations will increase the credibility and symbolize the serious commitment of the Malaysian Government in playing an active role in the IPEF negotiations, in addition to fostering a network of cooperation between Malaysia while engganging experts from the partner countries.
As the host, Malaysia has the advantage of highlighting issues of interest to Malaysia such as Technical Assistance and Economic Cooperation, Digitisation and Supply Chain”.
At the same time, the Ministry of Investment, Trade and Industry will continue to consult with stakeholders including relevant Ministries and agencies to ensure Malaysia’s interests are safeguarded throughout the IPEF negotiation process.
Six rounds of the IPEF Senior Official Meetings has been held thus far as follows in the various countries this year.
