POBNEWS24, Dhaka, May 24, 2022: The United States is keen to include Bangladesh in a new US-led economic alliance called the Economic Framework for Prosperity in the Indo-Pacific (IPEF). The matter has been under discussion for several months. The United States will discuss this in detail in the economic dialogue between the two countries to be held on June 2 in Washington.
Diplomatic sources in Dhaka and Washington confirmed the matter to Prothom Alo on Monday.
On condition of anonymity, a Bangladeshi diplomat told this correspondent yesterday that the United States had officially announced the IPEF yesterday. A few weeks ago, the United States informed Bangladesh about the priorities of this new economic alliance.
When asked, Brian Schiller, acting spokesman for the US Embassy in Dhaka , told Prothom Alo yesterday that IPEF has been under discussion with Bangladesh, a key US partner in the region, since the March partnership talks in Dhaka. Later, at regular intervals, the issue was also discussed in Dhaka and Washington. The exchange of views on IPEF will continue in the future as well.
The new economic framework focuses on the digital economy, the transition to environmentally friendly fuels and sustainable supply systems to meet the economic challenges of the 21st century.
Visiting US President Joe Biden in Tokyo yesterday announced the official launch of the IPEF, involving 12 countries. Initially, the alliance includes Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam, according to a statement from the White House. These 12 countries account for 40 percent of the world’s gross domestic product (GDP).
The White House said the new economic structure would strengthen ties between countries in the region, which are important for future technological advancement and adaptation to the global economy. This framework will help create a strong, sustainable and tolerant economic environment for the United States and India and the Pacific.
The IPEF focuses on business, supply chain, environmentally friendly economy and infrastructure as well as balanced taxation and anti-corruption.
International relations analysts say the US president’s announcement of a new framework for India and the Pacific signaled a retaliation by the United States on China’s territory and road initiative (BRI). The US administration has long talked about reducing China’s growing influence in the region, mainly through the BRI.
However, it is not clear to Bangladesh how the IPEF will work.
M Humayun Kabir, former ambassador of Bangladesh to the United States and president of Bangladesh Enterprise Institute, a research institute , yesterday that US President Joe Biden came up with the idea of IPEF in May last year. He announced the details of this alliance yesterday.
The United States is keen to add Bangladesh to the new alliance. Bangladesh has so far no experience of joining such a big economic alliance. As a result, in order to be involved in it, tax system, anti-corruption and other internal reforms have to be completed. The big question is how much Bangladesh will agree to these internal reforms.
