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JUSTRAC Meeting Addresses Anti-Corruption Commitments under the Indo-Pacific Economic Framework for Prosperity Fair Economy Agreement

JUSTRAC Meeting Addresses Anti-Corruption Commitments under the Indo-Pacific Economic Framework for Prosperity Fair Economy Agreement
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Overview

On May 29, 2024, the American Bar Association Rule of Law Initiative’s (ABA ROLI) Justice Sector Training, Research, and Coordination (JUSTRAC) program held a virtual meeting for its anti-corruption community of practice. The focus was on United States (U.S.) Government anti-corruption efforts under the Indo-Pacific Economic Framework for Prosperity (IPEF). Launched in May 2022, the IPEF includes 14 partners: the United States, Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. These countries represent 40% of global GDP and 28% of global trade in goods and services. The IPEF aims to enhance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness among its partners.

Lemarque Campbell, Senior Technical Advisor for Anti-Corruption at ABA ROLI, moderated the meeting. The panelists included:

  • Kathryn Nickerson, Assistant Chief Counsel, Office of the Chief Counsel for International Commerce, U.S. Department of Commerce
  • Erin Murphy, Senior Fellow, Asia Program, Center for Strategic and International Studies (CSIS)
  • Gary Kalman, Executive Director, Transparency International U.S.

Kathryn Nickerson started the discussion with an overview of the anti-corruption commitments under the IPEF Fair Economy Agreement. These commitments are built on existing agreements like the United Nations Convention against Corruption and the Organisation for Economic Co-operation and Development Anti-Bribery Convention. She highlighted additional provisions under the Fair Economy Agreement that go beyond standard anti-corruption agreements, such as binding labor provisions, commitments to protect migrant workers, and support for Financial Action Task Force recommendations on beneficial ownership. She also described how the Capacity Building Framework under the Fair Economy Agreement will enhance the ability of partner countries to effectively implement the Agreement.

Erin Murphy then provided her perspective on the Fair Economy Agreement from the private sector. She emphasized the importance of initiatives like IPEF to the Indo-Pacific region, noting its rapid growth but also high corruption risks which is hindering viable investments. The anti-corruption commitments are crucial for applying rule of law principles, which are essential for a robust economy. Erin also highlighted the importance of consistent transparency and ethical business practices, which can reduce investment risks and encourage private sector involvement in the region.

Gary Kalman presented an overview of the anti-corruption commitments in the Fair Economy Agreement from a civil society perspective. He reaffirmed Transparency International's commitment to ensuring the success of IPEF. Gary mentioned talks with regional Transparency International chapters in the Indo-Pacific region (Australia, Indonesia, Fiji, Korea, and New Zealand), that are eager to collaborate on the full implementation of the Agreement. He pointed out potential challenges, such as the need for genuine interest in governance and accountability from partner countries and businesses. Gary stressed the crucial role of civil society organizations (CSOs) in monitoring adherence to the anti-corruption commitments in the Agreement. In doing so, he emphasized that CSOs need access to information on all initiatives under the Fair Economy Agreement to ensure transparency and to hold governments accountable.

View the Recording