14 IPF nations agree to strengthen supply chain, reduce reliance on China
The Indo-Pacific Economic Framework has reached an agreement on supply chain sustainability and diversification
14 participating countries of the Indo-Pacific Economic Framework (IPF), including the United States (US) and India, have reached an agreement on supply chain resilience to reduce their dependence on China and meet future supply chain crises. and diversification through information sharing and coordinated crisis response
The group agreed to form an IPF Supply Chain Council, a Supply Chain Crisis Response Network and a Labor Rights Advisory Network, according to a statement by the group at the second in-person ministerial meeting of IPF countries in Detroit this weekend.
IPEF outlines progress on the trade, clean economy and fair economy pillars of the framework Members interested in the clean economy framework have agreed to set up a regional hydrogen initiative.
India has joined three of the four pillars of the IPF while being an observer in the trade pillar. Industry and Commerce Minister Piyush Goyal represented New Delhi in the cabinet. Reiterating India's commitment to sustainable supply chains and building a clean and fair economy for greater growth in the region, Goyal tweeted.
Announcing the agreement, US Commerce Secretary Gina Raimondo tweeted that the IPF has completed negotiations on a "first-of-its-kind" supply chain agreement. It's a big deal - and the first time there will be an international agreement on supply chains that will bring together 14 partners across the Indo-Pacific. "
The agreement will have to be translated into a final text and then be subject to a domestic ratification process in each country In addition to the US and India, these include Australia, Brunei, Fiji, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam.
IPF members said in a statement that the agreement on supply chains aims to enhance "sustainability, efficiency, productivity, stability, transparency, diversification, security, fairness and inclusion" through both collaborative activities and individual activities. State
Describing the purpose of the agreement, members said it aims to build their collective understanding of key supply chain risks, supported by each partner's identification and monitoring of its own critical areas and key materials. The agreement is intended to improve "crisis coordination and response to supply chain disruptions" through cooperation in facilitating the timely delivery of affected goods.
It will facilitate cooperation, organize investment and promote regulatory transparency in the sector in order to “prevent significant or widespread economic disruption to national security, public health and safety”; Respect, promote and realize, “in good faith”, labor rights in supply chains in partner countries; Ensure availability of adequate skilled manpower in critical areas and identify opportunities for technical assistance.
The IPF members agree to do so by respecting market principles, minimizing market distortions and unnecessary barriers to trade and protecting business confidentiality, the statement said.
To fulfill these objectives, the grouping agreed to set up three institutions
The IPF Supply Chain Council will give members an important mandate to work together to develop “sector-specific action plans for critical sectors and key commodities” to enhance sustainability, “development of resources, infrastructure and workforce, enhanced logistics connectivity, business including Matching, Joint Research and Development, and Trade Facilitation”.
IPEF will serve as an “emergency communication channel” for supply chain crisis response network members to seek assistance and facilitate information sharing during disruptions. And the IPF Labor Rights Advisory Board will be a multi-stakeholder body to promote labor rights in the supply chain, facilitate sustainable trade and investment opportunities, and invest in labor-friendly businesses. It is worth noting that labor-related organizations are not only consultative in nature and involve rigid and specific commitments from members
On a clean economy, IPF members said they are exploring ways to meet their climate goals and "facilitate research, development, commercialization, access, availability, and deployment of clean energy and climate-friendly technologies and investments for climate-related projects." region”.
By connecting the market through policies and standards, the grouping said it will do this by "ensuring energy is sustainable, sustainable, reliable and affordable, and by promoting low- and zero-emission goods and services." To deliver concrete benefits, IPF members are now identifying and developing initiatives to advance cooperation in critical areas to achieve a "unique path towards a net-zero emissions economy," according to a statement. Among these initiatives, interested IPEF members have agreed on “a regional hydrogen initiative to encourage widespread deployment of low-carbon and renewable hydrogen and its derivatives”.
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