Mega FTAs and the Indo-Pacific Economic Framework (IPEF) in the Asia Pacific Region: Will It Be Cooperation or Competition?

Abstract

The RCEP and the CPTPP are two Mega FTAs in the Asia and Pacific region. However, their economic interests are rather divided deeply and related to political and security issues. The trade conflicts between the U.S. and China have continued since 2018. In order to tackle on the Chinese expansion, the Biden Administration initiated the Indo Pacific Economic Framework (IPEF) in 2021 instead of returning to the CPTPP. This paper deals with the two Mega FTAs and the IPEF as well as East Asian collaboration and competition in the region. It also argues what are East Asian countries’ economic interests by participating in the Mega FTAs and the IPEF as well as how to overcome the protectionism caused by the trade conflicts between G2. Finally, it analyzes the roles and strategies of major economies overcoming protectionism, while the new global supply and value chains are reshaping in the region.