IPEF isn't a trade agreement but an economic one: Ex foreign secretary Shyam Saran

The Indo-Pacific Economic Framework (IPEF) launched at the recent Quad summit in Tokyo is not a trade agreement but an economic one which looks at various dimensions of economic partnerships, former foreign secretary Shyam Saran said.

IPEF is not a trade agreement as it does not incorporate things like tariff reduction or reciprocal commitments, Saran said, adding: "Rather it is about incorporating each other's best practices. Legal commitments are envisaged in the first pillar of the agreement regarding the commitments concerning data flow and data localisation. Other pillars look at mutually beneficial partnerships like supply chains where the question is about making them diverse, preventing disruptions etc."

India's participation in the agreement was ensured by giving it flexibility in terms of which pillar they would want to join for and what they can negotiate in, Saran recalled. He was speaking at Ananta Aspen Centre here on Thursday. Besides Quad members, IPEF comprises seven members of Asean and New Zealand & Fiji.