The Information Technology Industry Council (ITI) has applauded the release of a draft of the Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement and said input from private sector stakeholders will help improve the agreement further. The landmark agreement is intended to enable partner countries to strengthen critical supply chains.
The U.S. Department of Commerce released the text of the draft of the IPEF on Sept. 7 and said the agreement aims to prevent unnecessary work stoppages due to supply chain disruptions, according to a press 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. “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.”
The partner countries listed in the draft of the agreement are Australia, Brunei, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam, in addition to the United States.
IPEF partners would establish three "supply chain bodies" to enhance collaboration, according to the press release. The IPEF Supply Chain Council would oversee “critical sectors” and “key goods” that are vital to national security, preventing economic disruptions and public health. The Council would meet at least once a year to identify and address bottlenecks and other issues. The IPEF Supply Chain Crisis Response Network would establish a channel for emergency communications related to supply chain disruptions. The IPEF Labor Rights Advisory Board would work with labor representatives to address any labor rights concerns across the supply chains.
ITI Director of Asia Policy Michaela Wong said in a statement that the ITI commends the release of the draft of the IPEF and looks forward to the continued progress that will be made on the agreement during the next round of discussions, according to a press release.
“We applaud this positive step forward and hope additional near-term IPEF agreements can continue to strengthen Indo-Pacific ties. In particular, we welcome the commitments to avoid barriers to trade and to ensure proposed policies are available for stakeholder comment,” Wong said. “Ultimately, the success of the supply chain agreement will rely on input and robust collaboration from the private sector to realize goals on topics such as information sharing, increasing investments and technical cooperation, and workforce development. Negotiators should aim to build off this agreement in the coming months, particularly by concluding meaningful and ambitious trade outcomes. We hope to see continued progress toward these outcomes in the ongoing IPEF negotiating round in Bangkok."
Partners and stakeholders are discussing the IPEF in the fifth round of in-person negotiations in Bangkok from Sept. 10 to 16, according to the Commerce Department.
