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The EU, the Indo-Pacific and the US-led IPEF: Which Way Forward?

28 Sep 2023

The paper provides a European Union (EU) perspective on the Indo-Pacific Economic Framework
(IPEF). First, the recent progress made by the IPEF has given new momentum to the EU’s engagement
with the Indo-Pacific (IP) partners and to its recently launched Indo-Pacific strategy. In terms of
substance, two issues appear to be at the forefront of the IPEF as well as of the EU’s Indo-Pacific
strategy, namely supply chain resilience enhancement and various aspects of the digital economy.
There is probably scope for convergence and cooperation between the EU and the IPEF countries
on the former issue, which is addressed indirectly in different EU’s digital partnerships, while it is
the area where the IPEF has made most substantial progress. However, the differences between
the EU’s and the United States’ (US) approaches to some aspects of the digital economy may act
as stumbling blocks and give rise potentially to some form of competition in the IP region, making
cooperation on data-based efforts to enhance supply-chain resilience rather complicated.

Author: Françoise Nicolas

Editors: Amitendu Palit, Ramita Iyer

Project Lead: Cristita Perez

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The paper provides a European Union (EU) perspective on the Indo-Pacific Economic Framework
(IPEF). First, the recent progress made by the IPEF has given new momentum to the EU’s engagement
with the Indo-Pacific (IP) partners and to its recently launched Indo-Pacific strategy. In terms of
substance, two issues appear to be at the forefront of the IPEF as well as of the EU’s Indo-Pacific
strategy, namely supply chain resilience enhancement and various aspects of the digital economy.
There is probably scope for convergence and cooperation between the EU and the IPEF countries
on the former issue, which is addressed indirectly in different EU’s digital partnerships, while it is
the area where the IPEF has made most substantial progress. However, the differences between
the EU’s and the United States’ (US) approaches to some aspects of the digital economy may act
as stumbling blocks and give rise potentially to some form of competition in the IP region, making
cooperation on data-based efforts to enhance supply-chain resilience rather complicated.