New Delhi:
US President Joe Biden launched a new trade deal with 12 Indo-Pacific nations on Monday. The aim of this deal is strengthening the economies. This came with a warning for the American citizens as they face high inflation that is “going to be a haul” before some ease is felt.
Biden was speaking at a news conference after his meeting with Japan’s Prime Minister Fumio Kishida. He acknowledged the fact that the U.S. economy has “problems” which are “less consequential than the rest of the world”.
He further said, “This is going to be a haul. This is going take some time.” This came in response to the inevitability of recession in the U.S.
This comment was made soon after Biden launched the Indo-Pacific Economic Framework. The trade deal is designed to showcase the dedication of U.S. towards expanding the economic relation with Asian nations. This is being done with the aim of achieving economic stability post the disruptions caused by the pandemic and the ongoing Ukraine-Russia crisis.
The countries that will be joining the pact with U.S. are Australia, Brunei, India, Indonesia Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. With U.S. combined, these nations constitute up to 40% of the world GDP.
A joint statement released by the nations said that the pact will help them “prepare our economies for the future” post the pandemic and the Ukraine-Russia crisis. These two factors are being looked as the foundation for a global decline in the national economies throughout the world.
Indian Prime Minister Narendra Modi was also present in Tokyo along with Biden and Kishida for the launch event. Representatives of other nations were connected virtually for the event. Modi was present in Tokyo for the Quad meeting. Quad is four-nation security group that includes India, America, Japan, and Australia.
US said, The Indo-Pacific Economic Framework will focus on supply chains, digital trade, clean energy, worker protections and anti-corruption. However, it is not yet made clear that how the aim of helping US workers and simultaneously meeting the global needs will be fulfilled. The member countries are yet to negotiate on the details.
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