The United States, along with its Indo-Pacific Economic Framework partners, has reached a significant milestone by concluding negotiations on the IPEF Supply Chain Agreement.
This agreement aims to ensure American workers, consumers and businesses benefit from strong and efficient supply chains, according to a May 27 news release. It supports the revitalization of U.S. manufacturing and facilitates the steady flow of materials, components and inputs needed for effective global competition.
“The proposed IPEF Supply Chain Agreement would be a win for American consumers, workers and businesses,” Secretary of Commerce Gina Raimondo said in the news release. “It shows that an innovative approach to economic policy that is focused on meeting the challenges of the 21st century in close coordination with partners can deliver meaningful results.”
The proposed agreement focuses on proactive coordination to identify and address potential supply chain challenges before they escalate into widespread disruptions, the release reported. It emphasizes enhancing the resilience, efficiency, productivity, sustainability, transparency, diversification, security, fairness and inclusivity of supply chains. To achieve these goals, an IPEF Supply Chain Council would be established to develop sector-specific action plans, improving resilience and competitiveness in critical sectors.
“By having a network in place ahead of time, we can respond more effectively to supply chain challenges. That is what will make this agreement so unique and so important for the American people,” Raimondo added, according to the release.
Additionally, the IPEF partners would create an IPEF Supply Chain Crisis Response Network, serving as an emergency communications channel during acute supply chain crises, the release said. This network aims to facilitate more effective responses, ultimately benefiting American workers, businesses and consumers.
The agreement also introduces an innovative tripartite IPEF Labor Rights Advisory Board, which would identify labor rights concerns that could impact the resilience and competitiveness of supply chains, the release reported.