fbpx IPEF Overview | Ministry of Foreign Affairs and Trade - Have Your Say
Back to top anchor
Open main menu Close main menu

IPEF Overview

Overview of the Indo Pacific Economic Framework for prosperity (IPEF)

In May 2022, Prime Minister Jacinda Ardern joined Leaders from 12 other Indo-Pacific countries (subsequently 13 with the following participation of Fiji) in announcing the start of talks toward launching negotiations on the Indo-Pacific Economic Framework for Prosperity (IPEF).

Countries that have committed to developing the IPEF span our wider home region in the Indo-Pacific and include both ASEAN partners and some of the region’s major economies. Along with New Zealand, Australia, the US, Japan, Singapore, Korea, India, Thailand, Viet Nam, Indonesia, Malaysia, Brunei, the Philippines and Fiji have all pledged to collaborate on closer economic integration in new and novel ways, not limited to trade.

The Indo-Pacific region is vital for the prosperity and security of New Zealand. It contains over half of the world’s population and accounts for around two-thirds of the global economy. Strategically it is important for Aotearoa New Zealand to be an active partner in helping shape an Indo-Pacific order that delivers regional stability and economic integration in a sustainable and inclusive way.

What is the IPEF?

The Indo-Pacific Economic Framework for Prosperity is an opportunity to strengthen economic cooperation with the United States and other economies across our wider home region.

A fully realised IPEF that includes New Zealand perspectives and ideas would provide an open and inclusive platform for the US to engage more deeply in the economic architecture of the Indo-Pacific, which we think is valuable for both New Zealand and our region.

The Framework will cover some of the most important future-focused economic issues facing our region and the world, including harnessing the digital economy, decarbonising our economies, and making our supply chains more resilient.

The principles of sustainability and inclusivity are embedded throughout the Framework. There are strong linkages between the Framework and the principles that underpin New Zealand’s Trade for All Agenda, principles we will be bringing to the table in discussions to ensure the benefits of this Framework are broadly shared by our peoples.

The detail of what the IPEF may contain has yet to be fleshed out by partners, but Leaders have stated their ambition to negotiate commitments to cooperate on four pillars: Trade; Supply Chains; Clean Economy, and Fair Economy. 

The IPEF is not a Free Trade Agreement, and will not include market access for goods or services through traditional schedules, though we think that there would be commercial interest for New Zealand in the negotiation of trade rules with some of the region’s major economies, and by encouraging the implementation of existing commitments at a regional level.

The IPEF consultation process

As officials begin work to develop the IPEF, we want to hear your thoughts. Throughout the IPEF process, we will be posting questions here that we would like your views on.

The discussions taking place at the moment are designed to help countries to understand each other’s views on the four pillars of the IPEF, and to undertake an assessment of the opportunities that a negotiation might present, as well as any risks.  It will also be a chance for New Zealand to influence the direction and scope of an eventual negotiation.

Officials are now working to shape advice to Ministers to inform a decision by our Government on joining the negotiation, which we anticipate will kick-off sometime in in the coming months, following a further Ministerial meeting in the month of September.

The views of business, civil society and Māori will be reflected in the advice that goes to Ministers so they can give due and inclusive consideration to the broadest possible set of views in forming their decision.  If the Government decides that New Zealand should join the negotiation, it will provide guidance to negotiators on what they should aim to achieve for New Zealand. 

So in addition to visiting this page to respond to periodic survey questions, we invite you to submit your views on New Zealand’s participation in the IPEF to the Ministry of Foreign Affairs and Trade by emailing: ipef@mfat.govt.nz or writing to:

IPEF Coordinator
Ministry of Foreign Affairs and Trade
Private Bag 18901
Wellington

What are the benefits of the IPEF for New Zealand?

The Indo-Pacific Economic Framework for Prosperity is an opportunity to strengthen economic cooperation with the United States and across our wider home region.

The IPEF will provide an open and inclusive platform for the US to engage more deeply in the economic architecture of the Indo-Pacific, which we think is valuable for both New Zealand and the wider region.

The Framework will cover some of the most important future-focused economic issues facing our region and the world, including harnessing the digital economy, decarbonising our economies, and making our supply chains more resilient.

The principles of sustainability and inclusivity are embedded throughout the Framework. These are principles that underpin New Zealand’s Trade for All Agenda, principles we will be bringing to the table in discussions to ensure the benefits of this Framework are broadly shared by our peoples.

The IPEF will create new opportunities with major Indo Pacific economies to cooperate on:

  • Trade
  • Supply chains
  • Clean energy, decarbonisation, and infrastructure
  • Tax and anti-corruption

Strategically it’s important for Aotearoa New Zealand to be an active partner in shaping an Indo-Pacific order that delivers regional stability and economic integration in a sustainable and inclusive way.

Working on the Indo-Pacific Economic Framework for Prosperity with regional partners gives New Zealand an opportunity to shape a future-focused regional economic cooperation agenda that will make our economies more connected, resilient, inclusive, sustainable, and competitive.