On its side, the IPEF has reminded detractors that it is not a traditional Free-Trade Agreement (FTA), but
a new generation economic agreement. This has some appeal and the APAC allies have signed on
quickly. But the IPEF’s flexible approach means that having signed on, there is no compulsion to
follow through. Importantly, for now, there are no clear incentives for the private sector to part
with the sensitive supply chain information that is central to the IPEF’s success. Future negotiations
will benefit from the US’s willingness to sweeten the terms and position IPEF as an economic
arrangement complementing existing trade pacts rather than upending those.
a new generation economic agreement. This has some appeal and the APAC allies have signed on
quickly. But the IPEF’s flexible approach means that having signed on, there is no compulsion to
follow through. Importantly, for now, there are no clear incentives for the private sector to part
with the sensitive supply chain information that is central to the IPEF’s success. Future negotiations
will benefit from the US’s willingness to sweeten the terms and position IPEF as an economic
arrangement complementing existing trade pacts rather than upending those.
