APEC summit: Biden speaks on workers' rights, 'substantial' progress on IPEF

United States President Joe Biden said on Thursday (November 16) that he would continue working towards a Pacific trade pact even though his efforts and vision for the regional deal to counter China didn't go through

"Our work is not yet done," said Biden as he addressed corporate CEOs in San Francisco during a summit of the 21-memberAsia-Pacific Economic Cooperation (APEC) forum.

"We will continue working to better facilitate high-standard trade that advances workers' rights through strong enforcement of labour standards."

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The US president was slated to take part in an Indo-Pacific Economic Framework (IPEF) event. IPEF is a 14-nation group established by his administration.

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Prospects of an IPEF trade agreement vanished this week, as members couldn't agree on improving standards such as labour, environment and compliance. Biden, however, said later that "substantial" progress was made.

Reuters quoted an unnamed US administration official who said that the White House had plans to work on IPEF on an "accelerated timeline."

IPEF was started by the White House with the aim of boosting economic engagement with Asian countries after former US president Donald Trump took the US out of a regional trade pact in the year 2017.

There is a possibility that Biden may face Trump again in the 2024 US Presidential Election. The result of this contest may decide the degree of US support to multilateral groups like IMF, APEC and others.

On Thursday, before the APEC Summit, Biden underlined that US companies including ones like Amazon, Delta Air Lines, Pepsi, Apple and Boeing had made investments in the region.

Biden said that 60 per cent of US exports goto APEC countries and that US companies committed at least USD 40 billion in 2023, making them the largest source of foreign direct investments in economies within APEC.

Earlier on Thursday, US Commerce Secretary Gina Raimondo said that IPEF countries agreed on some "pillars" of the trade initiative. Ministers from these countries also formally signed a previously agreed text of a third pillar.

The CPTPP

The US was not the only country trying to attract APEC members in trade deals.Trade ministers from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) were also on the hunt.

The earlier version of the CPTPP was abandoned by former US president Donald Trump and the Biden administration is not exactly gung-ho on free trade deals after opposition from labour groups.

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APEC members closely watched interaction between US and China. President Biden held a summit with Chinese President Xi Jinping ahead of APEC forum. Both leaders were positive albeit while sticking to their previous positions.

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"A stable relationship between the world's two largest economies is not merely good for those two economies but for the world," Biden said to applause. "It's good for everyone."

(With inputs from agencies)