[CTC] Sources: Next IPEF negotiating round to be held in May in Singapore (ministerial still expected for Detroit)

Wed Mar 22 07:53:12 PDT 2023

Sources: Next IPEF negotiating round to be held in May, in Singapore
Inside US Trade, March 22, 2023 at 8:30 AM

The U.S. and its 13 Indo-Pacific Economic Framework for Prosperity partners in May will hold a third in-person negotiating round in Singapore, sources tell Inside U.S. Trade.

Over the weekend, the 14 IPEF countries concluded their second round of negotiations in Bali, Indonesia, addressing all four of the framework’s pillars. On Sunday, the Office of the U.S. Trade Representative and the Commerce Department released a readout on the round, stating the countries discussed U.S.-proposed trade-pillar texts on labor, environment, digital trade and technical assistance, in addition to text in the other pillars. New trade-pillar text on inclusivity was proposed by Australia and New Zealand.

Sources closely following the U.S.-led framework confirmed that the next round of negotiations is slated to be held in May in Singapore – likely during the week beginning on May 8.

One of the sources also confirmed that an IPEF ministerial meeting would be held later in May in Detroit following an Asia-Pacific Economic Cooperation trade ministerial the U.S. will host there. Detroit has long been considered a likely venue for IPEF talks, as most of the 14 IPEF countries are part of APEC.

Last week, USTR Katherine Tai held a virtual meeting with the Indonesian coordinating minister for economic affairs, Airlangga Hartarto, to discuss U.S.-Indonesia bilateral relations. According to an Indonesian government readout, Tai said she “would welcome the Indonesian delegation and 12 other IPEF partner countries at the IPEF Ministerial meeting in May 2023.”

The first ministerial meeting was held last September in Los Angeles.

USTR could not be reached by press time for comment on the next negotiating round. The agency also has not confirmed the Indonesian government’s claim of a ministerial in May.

Last month, India hosted a “special” negotiating round covering three of the four pillars of the framework: supply chains, clean economy, and fair economy. USTR oversees the trade pillar, while the Commerce Department leads the other three. India is the only country to opt out of the trade pillar but is observing the talks during the negotiating rounds.

Following the special round in India, IPEF negotiators reportedly agreed to push for a partial agreement by late May, according to a February report by Nippon, a Japanese news outlet. India’s minister of commerce and industry, Piyush Goyal, said after that session that framework partners should “focus energy on early harvest of deliverables” that can benefit all countries in the framework.

One of the sources closely following the framework said IPEF negotiators want to finalize the supply chain pillar soon – possibly even before the May ministerial.

The source contended that the trade pillar would be the most challenging to finalize and said its provisions remained “highly unresolved.” One reason, the source suggested, was a lack of congressional imprimatur, leaving IPEF countries unsure how the U.S. can ensure binding commitments.

Lawmakers from both parties have called on the administration to seek congressional approval of IPEF and similar initiatives.

Senate Finance Committee Chair Ron Wyden (D-OR) and ranking member Mike Crapo (R-ID), with 19 other panel members, sent President Biden a letter last December telling the administration it must submit IPEF to Congress for approval. The administration does not plan to do so, as IPEF talks do not cover tariff liberalization or provisions that would require changes to key U.S. laws that Congress would have to approve. -- Maydeen Merino (mmerino at iwpnews.com <mailto:mmerino at iwpnews.com>)

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826

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