In Japan, Biden to launch economic plan for region sceptical on benefits -Breaking
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© Reuters. U.S. President Joe Biden delivers remarks with Hyundai Motor Group Chairman Euisun Chung (not pictured) on the automaker’s decision to build a new electric vehicle and battery manufacturing facility in Savannah, Georgia, as Biden ends his visit to Seoul2/3
Yoshifumi and Trevor Hunnicutt
TOKYO, Reuters – On Sunday, President Joe Biden traveled to Japan to announce a plan to increase U.S. economic involvement with the Indo-Pacific. However it has been criticised for not offering any benefit to the countries of the region even though the program is being announced.
Biden’s second Asia trip will see him meet with the leaders of Japan and India. The “Quad” is another cornerstone in his plan to counter China’s increasing influence.
Biden will visit Emperor Naruhito in Tokyo, Monday before meeting with Fumio Kishida, the Prime Minister. Biden and Kishida should discuss Japan’s plans to increase its military capabilities in response China’s rising might.
Tokyo will see Monday’s launch of Biden’s eagerly awaited Indo-Pacific Economic Framework for Prosperity, (IPEF). This programme aims to bring regional countries closer through common standards in areas such as supply-chain resilience and clean energy.
Since former President Donald Trump renounced the Comprehensive and Progressive Agreement For Trans-Pacific Partnership (now known as the Multilateral Trade Agreement), Washington has been without an economic pillar for its Indo-Pacific engagement. This left the field wide open to China, which can expand its reach.
However, the IPEF does not appear to contain binding commitments. Asian countries as well as trade experts are reluctant to accept a program that is constrained by Biden’s inability to offer the greater market access America needs.
While the White House desired that it be an official start to negotiations with a group of core countries who are likeminded to Japan, Japan requested a broad participation to cover as many Southeast Asian countries possible.
According to sources, Monday’s ceremony is likely to signal an agreement for discussions on IPEF and not actual negotiations.
“Japan wanted as many participants as possible … and also wanted the U.S. to conduct an inclusive process of dialogue after the launch,” a person familiar with the discussions said.
Sources said that the Indian Prime Minister NarendraModi, Biden and Kishida would attend in person, while other leaders could also be present virtually.
LACK OF INCITIVES
According to a Japanese Finance Ministry official, many Southeast Asian countries will not be joining IPEF due to the absence of tangible incentives such as reductions in tariffs.
The official stated that it was not a “cold” decision, but one of practicality. This is probably due to the fact that it does not have any significant content.
A diplomat from Asia suggested that at least half of the ASEAN nations (Association of Southeast Asian Nations) might attend the ceremony.
Matthew Goodman (a Washington-based trade expert, at the Center for Strategic and International Studies) stated that “it seems like the White House decided to make IPEF launch more of a party with an opened bar that everyone is invited to,”
“Eventually, the administration will have to offer tangible benefits to countries if they want to stay onboard.”
Biden will be attending the Quad Group of Countries’ second meeting in Tokyo on Tuesday, April 22nd.
While all share concern about China’s rise, the Quad has largely avoided advocating an anti-China agenda. This is mainly due to Indian sensibilities.
Analysts believe that India’s strong security links with Russia and unwillingness to condemn their invasion of Ukraine will keep any strong joint statement about the issue from being made.
However, Quad leaders decided at the March meeting that they would not permit what had happened to Ukraine in the Indo-Pacific. This was a reference to China’s threats to Taiwan, which is self-governing. Beijing wasn’t mentioned.
Chinese envoy for Korean affairs Liu Xiaoming said on Twitter (NYSE:) that Washington was “putting together a closed & exclusive ‘clique’.”
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