WASHINGTON – The Office of the United States Trade Representative (USTR) and the U.S. Department of Commerce (Commerce) today announced the public release of the texts of the proposed Fair Economy Agreement (Pillar IV) and broader procedural provisions of the Indo-Pacific Economic Framework (IPEF).
Pillar IV Fair Economy Agreement
USTR and Commerce co-led the negotiation of the proposed Pillar IV Agreement for the United States. On November 16, 2023, the United States joined its IPEF partners – Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam – in announcing the substantial conclusion of the proposed Pillar IV Agreement.
This marks a major milestone in advancing the Biden-Harris Administration’s efforts to create a more transparent, predictable trade and investment environment across the Indo-Pacific.
The proposed Pillar IV Agreement embodies our commitment to driving inclusive, sustainable economic growth in the region by preventing and combatting corruption, and improving tax transparency and tax administration.
In particular, the proposed Pillar IV Agreement reflects how combatting corruption and enforcing labor laws can empower workers. To this end, it includes commitments to ensure that labor rights are respected, including to provide appropriate protections to migrant workers, and to take appropriate measures to prohibit employer interference with the exercise of freedom of association and collective bargaining rights.
IPEF Procedural Provisions
The IPEF partners also announced in November the substantial conclusion of negotiations on broader procedural provisions. Those include establishment of an IPEF Council, which will meet annually to consider matters relating to the IPEF Agreements. These provisions recognize the importance of a formalized and durable structure for ongoing economic cooperation at the ministerial level.
For more information on IPEF, please visit https://ustr.gov/ipef.
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