The Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Resilience Agreement will not limit New Delhi’s policy space to impose export restrictions, government officials said on Tuesday.
Commerce Secretary Rajesh Agarwal said that while the agreement talks about imposing “unnecessary” export restrictions, there are reservations, similar to World Trade Organization (WTO) provisions, that would He made it clear that it would not be exceeded. He clarified that if a country imposes export restrictions without providing a reason, it will be considered unnecessary.
The use of export restrictions is gaining importance as India takes extensive measures to ensure food security and reduce food prices in the run-up to the general elections. “Under supply chain agreements, there is no scope in our policy area to exercise the right to change tariffs or export policies…whatever is necessary for the country’s food security or other requirements of the country. You can exercise the right to change that policy. “The universe is with us,” Agarwal said. He said India is under no obligation to provide advance information to IPEF members about changes in tariffs.
IPEF was launched last May 23, jointly by the United States and other partners in the Indo-Pacific region, primarily to counter China’s influence on trade.
This framework is divided into four pillars: trade, supply chains, clean economy, and fair economy (with themes such as taxes and anti-corruption). India joined all pillars except trade.
Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the United States, and Vietnam are members of this bloc.
