The U.S. Department of Commerce today made publicly available the text of the proposed landmark Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement, marking another major milestone and accomplishment for the Biden-Harris Administration’s innovative approach to economic engagement. Following the release of the final text of the Agreement, the United States and partner countries will 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. “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 proposed Supply Chain Agreement is designed to enable IPEF partners to work together collaboratively to make supply chains more resilient, efficient, transparent, diversified, secure, and inclusive, including through information exchange, sharing of best practices, business matchmaking, collective response to disruptions, and supporting labor rights. This approach aims to create a commercial environment among IPEF partners that will make our 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. This work would center around “critical sectors” and “key goods” identified by each partner as essential to its national security, public health and safety, or the prevention of widespread economic disruptions. The Council, envisioned to meet at least annually, would collaborate and organize teams of experts to assess capabilities, map supply chains, identify bottlenecks, and explore options for diversification of concentrated sources of supply for sectors and goods of shared interest. Read More→
