The agreement calls for information exchange and coordinated action in times of emergency.
14 countries involved in the (Indo-Pacific Economic Framework) IPEF Nations, including the United States and India, have reached an agreement aimed at enhancing supply chain resilience and diversification in a clear effort to lessen their dependence on China and get ready for potential future supply chain challenges.
The agreement calls for information exchange and coordinated action in times of emergency.
The countries involved in the last Indo-Pacific Economic Framework (IPEF) ministerial conference in Detroit agreed to create an IPEF supply chain council, a supply chain crisis response network, and a labour rights advisory network. The organisation highlighted these changes in a statement.
The meeting also covered the developments in the framework’s trade, clean economy, and fair economy sections. Member nations who are interested have agreed to launch a regional hydrogen programme as part of the clean economy strategy.
US Commerce Secretary Gina Raimondo said that the Indo-Pacific Economic Framework (IPEF) has made substantial progress in negotiating a special and unprecedented supply chain agreement. She expressed her happiness with the statement.
The agreement will go through the translation process into a final document before being submitted for local approval processes in each of the member nations. Members of IPEF include Australia, Brunei, Fiji, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and Vietnam in addition to the United States and India.
The agreement involving supply chains, according to a statement released by the IPEF members, intends to improve several areas of their supply networks, including resilience, efficiency, productivity, sustainability, transparency, diversification, security, fairness, and inclusivity. Both collective efforts and individual initiatives performed by each participating nation will be used to accomplish this goal.
The IPEF members defined the agreement’s objectives, indicating that it seeks to create a framework for improving the general knowledge of significant supply chain risks.
Each partner will identify and keep an eye on relevant industries and products to accomplish this. The agreement also aims to improve supply chain disruption response and crisis coordination by encouraging partnerships that make it easier for the timely delivery of items that are disrupted.
In areas judged essential for maintaining public health and safety, national security, or avoiding significant economic disruptions, the agreement will promote regulatory clarity, foster investment mobilisation, and facilitate collaboration. Additionally, it aspires to preserve, promote, and truly implement labour rights in partner nations’ supply networks.
It also emphasizes finding chances for technical assistance and guaranteeing the availability of a trained workforce in crucial industries.
US Commerce Secretary Gina Raimondo said that the Indo-Pacific Economic Framework (IPEF) has made substantial progress in negotiating a special and unprecedented supply chain agreement. She expressed her happiness with the statement.
The agreement will go through the translation process into a final document before being submitted for local approval processes in each of the member nations. Members of IPEF include Australia, Brunei, Fiji, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and Vietnam in addition to the United States and India.
