IPEF plans to adopt three-year exit clause for nations

New Delhi, July 12 (KNN) The Indo-Pacific Economic Framework (IPEF) which comprises of 14 nations is considering to include a three-year exit clause which would allow members to move out of any of the pillars of the agreement, reported Business Standard. 

Led by the United States (US), IPEF was launched in May 2022 with an aim to strengthen economic cooperation among Indo-Pacific nations.

Along with the US and India, the other members are Japan, Australia, New Zealand, the Republic of Korea, Fiji, and seven ASEAN countries (Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam).

According to a report by Business Standard if a country feels that the economic initiative is not working in its favour, an exit can take place within three years of signing the pact.

India as of now has joined only three of the four IPEF pillars which are supply chain resilience, clean economy and fair economy (tax and anti-corruption).

Last year India pulled out of the IPEF’s trade pillar-related negotiations due to ambiguity about what benefits the member countries would derive from it.  (KNN Bureau)