Singapore’s deputy prime minister, Lawrence Wong, expressed his hopes for significant advancements in the U.S.-led Indo-Pacific Economic Framework for Prosperity (IPEF) discussions ahead of next month’s Asia Pacific Economic Cooperation (APEC) summit. Wong’s remarks were made during discussions with U.S. officials, where he emphasized the importance of enhancing the substance of the IPEF across various domains.
“We are diligently exploring ways to bolster the different facets of the IPEF,” Wong stated, adding, “Our aspiration is to have substantial developments to announce by the time of the APEC summit.”
Among the key areas of focus within the IPEF are supply chains, the green economy, and the digital economy. Wong underscored Singapore’s commitment to making significant progress in these domains, expressing optimism about the potential outcomes.
The IPEF was initiated by U.S. President Joe Biden as part of his administration’s efforts to strengthen economic ties with Asia and compete with China. This initiative followed the withdrawal of the United States from a pan-Pacific trade pact during the previous administration led by Donald Trump. However, the IPEF currently lacks some of the market-access provisions that many Asian states desire.
In response to this challenge, Lawrence Wong, who also serves as Singapore’s finance minister, proposed that Singapore’s bilateral cooperation with the United States could serve as a “pathfinder” for other countries. By setting high standards and forging a cooperative path, Singapore aims to create a model that other nations can follow, potentially leading to broader regional cooperation.
“We can establish these high standards and serve as a testing ground for joint endeavors before expanding them to the wider region,” Wong explained.
Sources familiar with the plans for IPEF discussions at the upcoming APEC summit expressed hope that participating nations could reach a consensus on key aspects of the framework. These include the third and fourth pillars, which focus on clean energy, decarbonization efforts, and anti-corruption measures. While the first pillar related to trade may pose challenges in achieving a consensus by November, discussions on the second pillar, which pertains to supply chains, were largely settled in May.
The APEC summit, comprising 21 member nations, is scheduled to take place from November 11th to 17th in San Francisco. Lawrence Wong conveyed Singapore’s desire to establish more extensive agreements with the United States, encompassing market access and trade liberalization. However, he acknowledged the prevailing reluctance to engage in discussions on these issues in the U.S. due to its domestic political landscape.
Wong concluded on an optimistic note, saying, “While there may not be an appetite for these discussions in the U.S. at the moment, we should maintain high ambitions and hope that conditions may change in the years to come.”
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