United States joins its IPEF partners – Australia, Brunei, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam – in announcing the substantial conclusion of negotiations on a landmark IPEF Supply Chain Agreement.

  

Summary:

    The United States, along with its Indo-Pacific Economic Framework (IPEF) partners, has announced the substantial conclusion of negotiations on a landmark IPEF Supply Chain Agreement. The agreement aims to enhance supply chain resilience, competitiveness, and cooperation among the participating countries. It focuses on areas such as workforce development, supply chain monitoring, investment promotion, and crisis response. The proposed agreement establishes various mechanisms, including a Supply Chain Council, Crisis Response Network, and Labor Rights Advisory Board, to address challenges and promote collaboration. The United States will begin working immediately to realize the benefits of cooperation on supply chains through training, symposiums, exchange programs, trade missions, and feasibility studies.

Key Points:

1. IPEF Supply Chain Agreement: The United States and its IPEF partners have concluded negotiations on the IPEF Supply Chain Agreement. This agreement aims to ensure resilient, reliable, and efficient supply chains that benefit American workers, consumers, and businesses. It supports the revitalization of U.S. manufacturing and facilitates the steady supply of materials and components required for global competitiveness.

   
   

2. Objectives of the Agreement: The proposed agreement seeks to foster coordination among IPEF partners to identify and address potential supply chain challenges proactively. It aims to increase the resilience, efficiency, sustainability, transparency, and inclusivity of supply chains. The agreement also establishes a Supply Chain Council to develop sector-specific action plans and a Crisis Response Network to facilitate effective responses during acute supply chain crises.

   
   

3. Labor Rights Advisory Board: The proposed agreement includes the establishment of an innovative tripartite Labor Rights Advisory Board. This board will identify labor rights concerns that pose risks to the resilience and competitiveness of supply chains. It will also cooperate with partners to address facility-specific allegations of labor rights inconsistencies.

   
   

4. Implementation Measures: The United States has outlined several measures to support the goals of the proposed agreement. These measures include trainings and symposiums on supply chain monitoring, launching an IPEF STEM Exchange Program, participation in fact-finding missions and trade missions, working towards Mutual Recognition Arrangements (MRAs) with IPEF partners' Authorized Economic Operator (AEO) Programs, and cooperation on digital shipping.

   
   

5. Indo-Pacific Strategy: The IPEF Supply Chain Agreement aligns with the Biden-Harris Administration's Indo-Pacific Strategy. The strategy aims to foster sustained economic cooperation with like-minded countries to address challenges in the global economy, changing technology, and increased competition. The Indo-Pacific region represents 40% of global GDP and serves as a crucial source of inputs for American manufacturers and an export market for American goods.

   
   

6. Revitalization of American Manufacturing: The Biden-Harris Administration has prioritized revitalizing the American manufacturing base. Significant investments have been made in new manufacturing capacity, focusing on future industries such as clean energy, semiconductor fabrication, and biotechnology. These efforts have resulted in substantial job growth and the strongest manufacturing expansion since the 1950s.