The U.S. Department of Commerce recently released the text of the proposed Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement as part of its efforts to increase transparency across the U.S. This move comes as an effort to innovatively approach economic engagement by the Biden-Harris administration, according to a Sept. 7 news release.
“The IPEF Supply Chain Agreement further delivers on President Biden’s commitment to revitalize American manufacturing and strengthen the critical supply chains our workers, companies, and consumers rely on,” Secretary of Commerce Gina Raimondo said in the release. “By working toward finalization of this monumental agreement, the United States is taking an important step forward to fortify bonds with our partners throughout the Indo-Pacific. Working in lockstep, we will be prepared to best address our shared economic challenges together.”
Each relevant country will conduct its internal processes to prepare for and conduct the signature of the agreement, the release reported. This agreement aims to strengthen collaboration among IPEF partners, fostering resilient, efficient and secure supply chains, reducing costs for Americans and ensuring a steady supply of critical goods during crises.
The proposed agreement establishes three supply chain bodies: an IPEF Supply Chain Council to oversee collaboration on supply chain issues, an IPEF Supply Chain Crisis Response Network to address disruptions and an IPEF Labor Rights Advisory Board to ensure labor rights and workforce development across the Indo-Pacific, the release said.
The Department of Commerce's transparency commitment includes public access to the text before signature and ongoing stakeholder engagement, with the IPEF partners actively preparing for its implementation, according to the release.
"Throughout the negotiations, the Department of Commerce and the Office of the U.S. Trade Representative have jointly held listening sessions for stakeholders to provide thoughts and comments on IPEF, including the proposed Supply Chain Agreement," the release said. "The Department of Commerce will continue to provide regular updates and briefings to Congress and to stakeholders as IPEF partners work through their domestic processes to accept, adopt, or ratify the agreement following signature."