[Asia Economy Reporter Inho Yoo] Wendy Cutler, former Deputy U.S. Trade Representative (USTR), stated regarding the Indo-Pacific Economic Framework (IPEF), which South Korea joined as a founding member, “The IPEF launch declaration does not mention China. It is aimed at strengthening cooperative relationships with other regional countries besides China.”
Former Deputy Cutler attended a symposium commemorating the 140th anniversary of Korea-U.S. diplomatic relations, hosted by the Asan Institute for Policy Studies and the U.S. Embassy in Korea on the 3rd, where she told reporters about the theory that IPEF is aimed at containing China, “To address the voices questioning whether this is about containing China, the word China does not appear anywhere. It will not appear in the future either.”
Cutler is a trade expert who led the Korea-U.S. Free Trade Agreement (FTA) negotiations.
Regarding criticisms about IPEF being anti-China, Cutler said, “IPEF’s purpose is not ‘anti-China.’ The goal of IPEF is to produce practical outcomes through positive cooperation within the region,” and asserted, “Participating countries do not need to choose between the U.S. and China.”
Cutler added, “We are preparing with a positive agenda,” and said, “We are working on what visions, values, and norms will be accepted in this region.”
Cutler emphasized South Korea’s role, stating, “South Korea will be a very key partner,” and added, “For IPEF to gain credibility, early results must be produced. South Korea can assist in the supply chain area.”
She continued, “For example, by sharing an early warning mechanism, a system can be established to notify each other in advance when supply shortages are expected,” and said, “Since South Korea has close relations with Southeast Asian and South Asian countries, it can also help encourage these countries to join IPEF.”
Unlike general trade agreements that primarily include tariff reductions, IPEF is a consultative body dealing with four major agendas: global trade, supply chains, decarbonization and infrastructure, and tax and anti-corruption measures. Although it was launched at the end of last month, the specific nature of the consultative body has not yet been clarified.
Regarding this, Cutler said, “In Asia, there are complaints like ‘What do we gain? Market access such as tariff reductions is important, but all of that is missing,’” and emphasized, “The detailed specifics have not yet developed. It is expected that details will emerge over the next few months as other member countries concretize the framework.”
She said, “There will be no request for member countries to reduce tariffs,” and added, “Some countries find it difficult to accept the absence of tariff reductions, but I believe other opportunities can be presented.”
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