Indo-Pacific Economic Framework Ministers Discuss Critical Minerals and Trade Cooperation

INTI- Detroit, United States, The Indo-Pacific Economic Framework (IPEF) Ministerial Conference took place on May 26-27, 2023, in Detroit, United States. The conference gathered ministers from 14 partner countries that are part of the Indo-Pacific Economic Framework for Prosperity (IPEF), representing over 40% of the global economy and 28% of global trade in goods and services.

Coordinating Minister for Economic Affairs of Indonesia, Airlangga Hartarto, attended the IPEF Ministerial Conference. Prior to the conference, he held a series of bilateral meetings with several ministers from key partner countries on May 26, 2023. This year's IPEF meeting marks the second ministerial-level gathering, following the first meeting held in Los Angeles on September 8-9, 2022.

The IPEF Ministerial Meeting was opened by Ambassador Katherine Tai, the United States Trade Representative (USTR), and Gina Raimondo, the Secretary of Commerce of the United States, on Saturday (May 27), after conducting various preliminary meetings and activities on Friday.

As widely known, the IPEF is structured around four main pillars: Trade, Supply Chain, Clean Economy, and Fair Economy.

During her opening remarks, Ambassador Tai expressed hope that several chapters within Pillar I could be agreed upon before the IPEF Leaders Meeting in November 2023. Some of the chapters under Pillar I include Trade Facilitation, Technical Assistance and Economic Cooperation, Good Regulatory Practices, and Domestic Service Regulations.

Following the opening session, Minister Airlangga had the opportunity to be the first speaker and expressed Indonesia's desire to include the issue of Critical Minerals in the discussions under Pillar I. "Indonesia is ready to participate in the discussion on Critical Minerals as one of the priority topics within Pillar I of the IPEF," emphasized Minister Airlangga. Other IPEF member countries also supported the inclusion of the critical minerals issue in the Pillar I discussions. Furthermore, Ministers from the 7 ASEAN countries present at the conference agreed to support Indonesia's proposal. Australia also responded positively to Indonesia's proposal.

Ambassador Tai stated that the United States wants to delve into the issue of Critical Minerals during the negotiations in Pillar I of the IPEF and hopes for active participation from IPEF member countries in the discussions. Through the IPEF, the United States aims to ensure the availability of Critical Minerals among its member countries.

In this year's IPEF negotiations, the topic of Critical Minerals has emerged as one of the main discussion points. Several IPEF member countries currently have agendas to develop global supply chains in the Indo-Pacific region to boost economic growth and global energy security.

In his capacity as ASEAN Chair for this year, Minister Airlangga stated that together with ASEAN member states participating in the IPEF, they would support efforts to enhance free and open trade and investment through the IPEF framework.

"As the ASEAN Chair in 2023, Indonesia's mission is to achieve long-term sustainable and inclusive growth, and the realization of the IPEF will strengthen our efforts to achieve that goal," said Minister Airlangga.

The IPEF is expected to bring tangible benefits such as new opportunities for SMEs, wage increases, and price reductions. Minister Airlangga also mentioned that Indonesia has put forward the Bali Initiative for Tangible Benefits, which is a commitment and joint initiative with several IPEF member countries. This initiative consists of practical and concrete steps to build the necessary capabilities to realize the IPEF.

As a note, the Bali Initiative was established during the second IPEF negotiations in Bali in March 2023 and was jointly prepared by seven IPEF member countries: Brunei, Fiji, Indonesia, Singapore, Thailand, Malaysia, and Vietnam.

In concluding the meeting, the United States government expressed the hope that the legal scrubbing of the agreements under Pillar I of the IPEF could be completed soon, and the participating countries could continue the constructive and inclusive negotiation process, in line with the original objectives of the IPEF.

Following the IPEF Ministerial Conference in Detroit, the next IPEF meeting on the agenda is the fourth round of negotiations scheduled to take place in Busan, South Korea, on July 8-15, 2023. ***.Hans