The U.S. Department of Commerce has announced progress in operationalizing the Indo-Pacific Economic Framework for Prosperity (IPEF) Agreement Relating to Supply Chain Resilience with the conclusion of the inaugural virtual meetings of three newly established supply chain bodies: the Supply Chain Council, the Crisis Response Network, and the Labor Rights Advisory Board.
These meetings mark a significant step towards achieving the collective goals under the IPEF Supply Chain Agreement. The agreement aims to enhance cooperation among 14 IPEF partners—Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the United States, and Vietnam—to strengthen critical supply chains' resilience and competitiveness. It also seeks to better prepare for and respond to disruptions that threaten economic prosperity while improving labor rights across the region.
U.S. Secretary of Commerce Gina Raimondo emphasized the importance of this initiative in light of vulnerabilities exposed by COVID-19. "The economic impact of COVID-19 exposed vulnerabilities in our supply chains that caused a ripple effect across the country and around the world," said Raimondo. "To safeguard our supply chains from future global disruptions—whether it be a pandemic or natural disaster—we knew we needed to act swiftly and decisively."
Under President Biden and Vice President Harris' leadership, IPEF was established less than two years ago. According to Raimondo: "We are quickly working together with our partners to ensure we’re prepared to mitigate crises' impacts while building a stronger economy for American workers."
The three new bodies established under this agreement include:
1. **Supply Chain Council**: Focuses on strengthening supply chains critical to national security, public health, and economic well-being.
2. **Crisis Response Network**: Provides a forum for collective emergency response.
3. **Labor Rights Advisory Board**: Brings together workers, employers, and governments to strengthen labor rights and workforce development.
For these entities:
- The Supply Chain Council elected Grant Harris as Chair from the United States and India as Vice Chair.
- The Crisis Response Network elected South Korea as Chair and Japan as Vice Chair.
- The Labor Rights Advisory Board elected Thea Lee from the United States as Chair with Fiji serving as Vice Chair.
Assistant Secretary Harris highlighted ongoing efforts: “The U.S. Department of Commerce has made supply chain resilience a top priority... Through collaboration under the IPEF Supply Chain Agreement, we can support economic growth and lower costs for American families by strengthening supply chain resilience.”
Deputy Undersecretary Lee underscored labor rights' significance within this framework: “The Labor Rights Advisory Board will be a valuable tool to protect labor rights...and create an investment environment that leads to long-term sustainable growth in the Indo-Pacific region.”
IPEF was launched by President Biden in May 2022 with negotiations beginning later that year. Substantial conclusions were reached on various agreements by November 2023 with formal signing ceremonies held subsequently.
