The U.S. Department of Commerce on September 7 made publicly available the text of the proposed landmark Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement. The United States and partner countries will now conduct their own domestic processes to prepare for signature of the Agreement.
“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,” said Secretary of Commerce Gina Raimondo.
The proposed Supply Chain Agreement is designed to enable IPEF partners to work together collaboratively through information exchange, sharing of best practices, business match-making, collective response to disruptions, and supporting labor rights. The stated aim is to create a commercial environment among IPEF partners that will make those nations’ supply chains more competitive, and decrease costs for Americans. It is also designed to facilitate a reliable supply of critical goods during a time of crisis, working to ensure that American companies have access to key inputs, and that American workers will not face unnecessary furloughs and work stoppages due to supply chain disruptions.
The IPEF partners continued collaboration would be accomplished through the formal establishment of three supply chain bodies.Senior government officials from IPEF partners would form an IPEF Supply Chain Council responsible for overseeing collaboration on supply chain issues across the Indo-Pacific. To help prepare for and respond to future supply chain disruptions, IPEF partners also would form an IPEF Supply Chain Crisis Response Network. In recognition of the importance of labor rights and workforce development in strengthening resilient supply chains across the Indo-Pacific, the Agreement would establish a unique tripartite IPEF Labor Rights Advisory Board, with government, worker, and employer representatives.
To read the full text of the IPEF Supply Chain Agreement, click here.