IPEF's Waning Relevance Under Trump's Trade Strategy

The Indo-Pacific Economic Framework for Prosperity (IPEF), a 14-nation collaboration including major economies like India, the US, and Australia, is reportedly losing its significance in the wake of Donald Trump's aggressive trade policies, according to a statement from think tank GTRI.

Launched in May 2023, the IPEF was designed to foster cooperative trade relationships among partner countries. Structured around four key pillars—Trade, Supply Chains, Clean Economy, and Fair Economy—the framework encompasses 40% of global GDP and aims to diversify supply sources, enhance clean energy practices, and improve tax transparency.

However, under Trump's approach, characterized by high tariffs and bilateral deals, the think tank argues that IPEF's non-binding cooperative structure has become less relevant. India, participating in three pillars but opting out of the trade pillar, stands to benefit as a manufacturing alternative, contingent on domestic reforms and infrastructure enhancements.

(With inputs from agencies.)