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Question

Difficulty: HardInternational Relations, Global Summits, and Multilateral Organizations

Consider the following statements regarding the Indo-Pacific Economic Framework for Prosperity (IPEF):

1. It was established as a traditional multilateral free trade agreement focused on tariff reductions and market access commitments among member states.
2. The framework is structured around four key pillars: Trade, Supply Chains, Clean Economy, and Fair Economy.
3. India has joined negotiations for all four pillars of the framework.

Which of the statements given above is/are correct?

  1. 2 onlyAnswer
  2. B
    1 and 2 only
  3. C
    2 and 3 only
  4. D
    1, 2 and 3

Answer

2 only
The option selecting statement 2 only is correct because IPEF is organized into four pillars (Trade, Supply Chains, Clean Economy, Fair Economy). It is not a traditional tariff-reducing free trade agreement, and India selectively opted out of the Trade Pillar while joining the remaining three pillars.

Step-by-Step Solution

1
Analyze Statement 1 regarding the nature of the Indo-Pacific Economic Framework for Prosperity (IPEF).
Statement 1 is incorrect.
IPEF is an economic initiative launched by the United States and partner nations in May 2022. Unlike traditional free trade agreements (FTAs), it explicitly does not involve negotiations on tariff cuts or preferential market access.
2
Analyze Statement 2 regarding the structural pillars of IPEF.
Statement 2 is correct.
IPEF is built on four distinct policy pillars: Pillar I (Trade), Pillar II (Supply Chains), Pillar III (Clean Economy), and Pillar IV (Fair Economy, covering tax and anti-corruption).
3
Analyze Statement 3 regarding India's participation status across the pillars.
Statement 3 is incorrect.
India joined and signed agreements for Pillars II, III, and IV, but decided to opt out of Pillar I (Trade) negotiations over concerns regarding binding commitments on digital commerce, labor laws, environment, and agriculture.
4
Combine the evaluations to select the correct option.
Only statement 2 is correct.
Matching statement 2 only yields the required correct response.

Key Concept

Indo-Pacific Economic Framework for Prosperity (IPEF) Pillars and Participation
Estimated Time:1m 30s
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Topics

International Relations, Global Summits, and Multilateral Organizations