IPEF Inks New Indo-Pacific Supply Chain Cooperation Accord
(26 May 2023 – United States) Indo-Pacific Economic Framework (IPEF) Trade Ministers led by the United States (US) are in the final stages of a highly anticipated pact to improve supply chain resilience and security.
The announcement signals the first stage of progress in protracted negotiations since Q2 2022 including four rounds of in-person negotiations.
Among the 14 IPEF trade partners, Australia proposed a strategic supply chain agreement for the region that aims to boost economic resilience, transparency and security. IPEF members include Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the US and Vietnam.
Australia and South Korea will establish a joint initiative to boost the capacity of other IPEF partners to identify, monitor and manage critical supply chain vulnerabilities.
“The first of its kind agreement calls for countries to form a council to coordinate supply chain activities and a "Crisis Response Network" to give early warnings to IPEF countries of potential supply disruptions” stated US Commerce Secretary Gina Raimondo at the announcement in Detroit.
"I can tell you I would have loved to have had that Crisis Response Network during COVID. It absolutely would have helped us secure American jobs and keep supply chains moving" she added.
“The IPEF Supply Chain Council will start work on plans to address vulnerabilities and chokepoints through the Indo-Pacific. This will provide a lasting platform to mobilise investment and boost value-adding opportunities for Australian industry in areas such as critical minerals and clean energy technologies, strengthening our economic resilience” commented Australian Trade Minister Don Farrell.