{"id":2202768,"date":"2023-11-17T16:11:35","date_gmt":"2023-11-17T07:11:35","guid":{"rendered":"https:\/\/koreapro.org\/?p=2202768"},"modified":"2023-11-20T17:11:20","modified_gmt":"2023-11-20T08:11:20","slug":"south-korea-faces-dilemma-after-us-fails-to-deliver-own-watered-down-trade-pact","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/11\/south-korea-faces-dilemma-after-us-fails-to-deliver-own-watered-down-trade-pact\/","title":{"rendered":"South Korea faces dilemma after US fails to deliver own watered-down trade pact"},"content":{"rendered":"
The U.S. failed to deliver on its own commitment to the Indo-Pacific Economic Framework (IPEF) this week, a serious blow to its efforts to engage economically in Asia and with South Korea.<\/span><\/p>\n This setback <\/span>emerged<\/span><\/a> in San Francisco, where the 14 nations involved in IPEF made headway on some fronts, including supply chain resilience and anti-corruption measures. Yet they hit a wall on critical issues such as the regulation of data flows and goods produced through forced labor.<\/span><\/p>\n In particular, the so-called <\/span>trade pillar<\/span><\/a> of IPEF, a cornerstone of the framework, appears to be dead.<\/span><\/p>\n The breakdown will put further pressure on South Korea and other regional leaders to look for alternatives without the U.S. \u2014 and thereby provide opportunities for China.<\/span><\/p>\n AMBITIONS AND REALITIES<\/b><\/p>\n Launched by U.S. President Joe Biden in May 2022, IPEF was envisioned as the key economic component of America\u2019s <\/span>Indo-Pacific strategy<\/span><\/a>, which aimed to \u201cmore firmly anchor the United States in the Indo-Pacific\u2026 the most dynamic region in the world.\u201d<\/span><\/p>\n This initiative followed recognition in Washington that the U.S. withdrawal <\/span>from the Trans-Pacific Partnership<\/span><\/a> (TPP) under President Donald Trump in 2017 had left its economic engagement in Asia lagging way behind its security commitments.<\/span><\/p>\n The Biden administration worked hard to sign up 14 nations, including South Korea, Japan, India and Australia, for a new economic framework, claiming that \u201cexpanding U.S. economic leadership in the region is good for American workers and business.\u201d These countries shaped the framework across four areas: trade, supply chains, a clean economy emphasizing decarbonization and a fair economy focused on anti-corruption and tax reforms.<\/span><\/p>\n Notably absent was <\/span>China<\/span><\/a>, highlighting the geopolitical undercurrents driving the initiative.<\/span><\/p>\n From the outset, the IPEF was met with skepticism around the region, since it <\/span>explicitly excluded<\/span><\/a> any discussion of tariff reductions \u2014 the bread and butter of trade agreements.<\/span><\/p>\n On the one hand, this was helpful for enticing traditional trade skeptics like India and Indonesia to sign on. <\/span>But the lack of tangible incentives in the form of additional trade access raised doubts about the feasibility of convincing<\/span> partner nations to undertake painful reforms in areas like labor standards and environmental protection.<\/span><\/p>\n