Biden launches IPEF and Yoon says Korea will do its part

Politics

Published: 23 May. 2022, 18:40 Updated: 23 May. 2022, 19:07

Biden launches IPEF and Yoon says Korea will do its part

Korean President Yoon Suk-yeol, left, listens to U.S. President Joe Biden’s remarks during a videoconference launching the U.S.-led Indo-Pacific Economic Framework for Prosperity (IPEF) from his presidential office in Seoul Monday afternoon. [NEWS1]

Korea will do its part for a prosperous and resilient regional economy, said President Yoon Suk-yeol in a virtual summit launching the U.S.-led Indo-Pacific Economic Framework for Prosperity (IPEF) Monday afternoon.

With a dozen Indo-Pacific partners, U.S. President Joe Biden established the IPEF, a new economic bloc seen to be countering Chinese influence in the region, during a visit to Tokyo after concluding a three-day visit to Seoul over the weekend.

"Today's launch of the IPEF amid this rapidly changing economic environment is a testament to the regional countries' commitment to solidarity and regional cooperation in what I view as a meaningful first step forward," said Yoon in the videoconference. "To open an era of shared prosperity in the Indo-Pacific, let us join our strengths. Building on strong solidarity, Korea for its part commits to fulfill its responsibility."

Biden said in his opening remarks, "We're here today for one simple purpose: the future of the 21st century economy is going to be largely written in the Indo-Pacific. Our region."

The IPEF, a comprehensive economic framework for the region proposed by the United States last October at the East Asia Summit, is viewed as a means for members to "decouple" from the Chinese market by finding alternative supply chains. It comes as the Biden administration aims to reassert U.S. influence in the region after the Donald Trump government's distancing from its allies. The framework will focus on four pillars: inclusive and fair trade; supply chain resilience; clean energy, decarbonization and infrastructure; and tax and anticorruption measures.

The 13 inaugural members are: Australia, Brunei Darussalam, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Vietnam and the United States. The countries represent 40 percent of the world's gross domestic product (GDP).

Leaders of these countries joined in virtually as Biden launched the new trade deal with Japanese Prime Minister Fumio Kishida.

Yoon noted that the world is confronted with the Covid-19 pandemic, supply chain disruptions, climate change, food and energy insecurity and other numerous crises, adding, "No single country alone can tackle these tough challenges alone."

"The Republic of Korea, on the foundation of liberal democracy and market economy, was able to attain rapid growth and development," said Yoon. "Across a full spectrum of the IPEF pillars, Korea stands ready to share its experiences and work together."

Yoon described Korea's plans to contribute toward supply chain resilience, digital transformation and clean energy while stressing the framework's principles of openness, inclusivity and transparency.

"For an effective response to the global supply chain crisis, it is imperative that we have a global coordination mechanism in place in semiconductors, batteries, future mobility and other leading edge industries," said Yoon, pledging to work with regional partners to "build supply chains that deliver mutual benefits."

He added that in response to the transition to a digital economy, Korea will "drive innovation in emerging technologies and contribute to building digital infrastructure." He said Korea can contribute from its experience as the world's first country to have commercialized 5G and its advanced telecommunication technologies.

Korea, he added, is also ready to actively collaborate in clean energy sectors including nuclear power, hydrogen and other renewable energy sources and "make bold investments to establish low carbon infrastructure."

The inaugural members in a joint statement shared a commitment to "a free, open, fair, inclusive, interconnected, resilient, secure, and prosperous Indo-Pacific region that has the potential to achieve sustainable and inclusive economic growth."

They also acknowledged that "economic policy interests in the region are intertwined, and deepening economic engagement among partners is crucial for continued growth, peace, and prosperity."

Regarding supply chain resilience, the framework aims to coordinate crisis response measures and ensure access to key raw and processed materials, semiconductors, critical minerals and clean energy technology.

On Saturday, Yoon announced in a joint press conference Korea's intention to join the IPEF after his first summit with Biden in Seoul.

"If we are excluded in the rule-making process, it will cause a lot of damage to our national interest," Yoon told reporters Monday morning.

But Seoul's participation in the IPEF could have future diplomatic implications for Korea amid the intensifying Sino-U.S. rivalry.

The IPEF is seen as a countermeasure to the Chinese-led Regional Comprehensive Economic Partnership (RCEP), the largest free trade agreement to date, which went into effect in Korea in February. Asean's 10 member states, Japan, China, Australia and New Zealand also signed the mega-FTA.

"Even if we strengthen our alliance with the United States in security and technology, it does not mean that we think our economic cooperation with China is unimportant," Yoon said in an interview with the CNN Monday. "So I do not believe it is reasonable for China to be overly sensitive about this matter."

BY SARAH KIM [kim.sarah@joongang.co.kr]