‘Difficult to believe’: Biden’s economy plan a tough sell in Asia
Al JazeeraMay 20, 2022
The Facts
Pres. Biden has announced the formal launch of the Indo-Pacific Economic Framework for Prosperity (IPEF), which will see the US, together with 12 Asia-Pacific nations, work on common standards in trade, supply chains, clean energy and infrastructure.
The countries involved will soon begin talks to define the final framework. Negotiations are set to last 12 to 18 months, which is considered an aggressive timeline.
The Spin
Establishment-critical narrative
The IPEF is an uninspiring prospect for the pact's members; it lacks clear trade provisions and, thus, clear incentives for developing, trade-reliant nations that have joined the US-led deal. In fact, Biden's resistance to pursuing a major trade deal echoes the protectionist inclinations of Trump and his abrupt exit from the TPP.
Pro-establishment narrative
Had Trump not pulled out of the TPP, Biden wouldn't be forced to make diplomatic compromises with such a diluted framework. In the current, delicate state of hyperpartisanship, Biden knows he would be unable to garner support for a less flexible or more committed trade deal than IPEF, which will successfully keep the US active in the Asia-Pacific region until political attitudes towards traditional trade agreements move forward.
Nerd narrative
There is a 50% chance that at least 2.77% of global payments in 2023 will be in Chinese renminbi, according to the Metaculus prediction community.
