During the Indo-Pacific Economic Framework for Prosperity (IPEF) Leaders’ Meeting held in San Francisco on November 16, member economies achieved consensus on three key pillars of cooperation. However, discussions regarding the crucial trade pillar remain ongoing. US President Joe Biden noted, “We still have more work to do, but we made substantial progress in record time,” emphasizing the collaborative efforts among the 14 member countries, including Singapore, Japan, India, and Vietnam.

Established in May 2022, the IPEF serves as a strategic initiative for the US to address China’s increasing influence in the region. Recently, leaders signed a groundbreaking agreement on supply chain resilience and significantly advanced discussions on clean economy agreements. Singapore’s Prime Minister Lee Hsien Loong expressed optimism about the IPEF’s forward-looking agenda, which aims to enhance the economic landscape for businesses and workers in member nations.

The agreements encompass various aspects, including promoting workers’ rights and improving economic opportunities for families and small enterprises. Despite this progress, challenges remain in achieving consensus on the trade pillar due to differing views on labor and environmental standards among member countries.

In a separate address at the APEC CEO Summit, President Biden highlighted the need for economies to adapt to current global challenges. He stated that priorities should focus on resilience, equitable growth, and reducing carbon emissions rather than merely increasing trade volumes.

While consensus on the trade pillar continues to elude leaders, the other three pillars of cooperation are expected to bolster supply chain security, enhance clean economy transitions, and combat corruption. Additionally, the IPEF critical minerals dialogue was initiated to improve collaboration on essential mineral supply chains, vital for regional economic competitiveness.

In a related discussion on sustainability at the APEC leaders’ informal dialogue, PM Lee urged APEC economies to invest in new technologies and establish robust carbon markets to support climate action. He stressed the importance of developing financial models to facilitate the energy transition, emphasizing collaboration among public and private sectors to unlock investment in green projects.

Amid the summit activities, PM Lee also engaged with Peru’s President Dina Boluarte and Google CEO Sundar Pichai, discussing opportunities for enhanced bilateral ties and technological innovation in the region.