Clean and fair economic agreement with Vietnam's participation comes into effect

The 14 IPEF economies aim to accelerate the energy transition in the region through efforts such as developing hydrogen energy, under the recently effective Clean Economy Agreement - Photo: TTO Document

On October 12, Kyodo News Agency reported that the Clean Economy Agreement and the Fair Economy Agreement will take effect on October 11 and October 12, respectively.

These are two of the four main pillars of the Indo-Pacific Economic Framework (IPEF), opening up opportunities for stronger cooperation among member countries towards sustainable economic and trade development based on equity and clean energy.

Under the Clean Economy Agreement, the 14 IPEF countries aim to accelerate the region's energy transition through efforts such as developing hydrogen energy, increasing the use of sustainable aviation fuels, and improving clean electricity trading capabilities.

The Fair Economic Deal includes provisions to prevent corruption, improve transparency and efficiency in tax administration, such as strengthening protections for those reporting corruption and introducing provisions to punish illegal activities in government procurement processes.

IPEF members completed discussions on the two agreements in November 2023 at the 2023 Asia-Pacific Economic Cooperation (APEC) Summit Week in San Francisco, USA.

Previously, the agreement on strengthening supply chains also took effect in February.

The final trade deal is still under discussion and member countries remain divided on digital trade issues.

The administration of US President Joe Biden announced the IPEF in Tokyo in May 2022, aiming to strengthen economic relations with countries in the Indo-Pacific region.

Fourteen countries participated in the negotiations, including the United States, South Korea, Japan, Australia, New Zealand, India, Thailand, Malaysia, Indonesia, Vietnam, the Philippines, Singapore, Brunei and Fiji.

The IPEF economic framework is divided into four pillars: trade; supply chains, clean economy and fair economy. Accounting for 40% of global gross domestic product (GDP), IPEF is a new generation trade agreement that does not include tariff reduction commitments.

Source: https://tuoitre.vn/thoa-thuan-kinh-te-sach-cong-bang-co-viet-nam-tham-gia-di-vao-hieu-luc-20241012133348348.htm