Canada intends to join the Indo-Pacific Prosperity Economic Framework (IPEF) and the Digital Economic Partnership Agreement (DEPA) to diversify its exports, among other objectives.

Overall, Canada is committed to expanding and diversifying trade with large markets and fast-growing regional groupings.

What is IPEF? A potential strategic initiative to foster economic development and cooperation among Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, the United States and Vietnam.

What about DEPA? An agreement aimed at facilitating digital trade and cooperation between Chile, New Zealand and Singapore.

The goal of Canada’s Indo-Pacific Strategy (IPS) launched in November 2022 is to expand trade, investment and supply chain resilience in the Indo-Pacific region.

The IPS seeks to increase export diversification and free trade access, including through accession to IPEF and DEPA, as well as improve market access through new Free Trade Agreements (FTAs), including those already under negotiation.

Canada began bilateral negotiations with Indonesia in June 2021, and with the 10 countries of the Association of Southeast Asian Nations (Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam) in November 2021.

IPEF

According to the White House, President Joe Biden’s Administration remains committed to collaborating economically with partners in the Indo-Pacific region.

For the coming decades, the Biden Administration believes that competitiveness will be largely defined by how well countries are able to leverage technology and the coming energy and climate transition to promote inclusive economic growth, and working with its partners and allies in the Indo-Pacific will be critical to achieving these goals.

The Indo-Pacific is one of the most dynamic regions in the world and of strategic importance to the United States.

For its part, the DEPA typically includes provisions related to digital infrastructure, e-commerce, data governance, cybersecurity and intellectual property rights in the digital sphere.