The Indo-Pacific talks led by the US will create an agreement on early warnings in the supply chain

Detroit, May 27, 2010 (FBC) An agreement by trade ministers of 14 countries at the US-led Indo-Pacific Economic Framework (IPEF) to make supply chains more resilient and reliable is “absolutely complete,” the Commerce Department said Saturday. The first tangible results of the year-long negotiations.

U.S. Commerce Secretary Gina Raimondo said at a press conference in Detroit that the “first-of-its-kind” agreement would require countries to establish a council to coordinate supply chain operations and a “crisis response network” to provide IPF countries with early warning of supply disruptions. .

The agreement provides an emergency communication channel for IPEF countries to seek support in the event of supply chain disruptions, collaborate more in times of crisis and recover faster.

Raimondo cited a persistent shortage of semiconductors during the Covid-19 pandemic, which shut down production of US automakers and left thousands of workers.

I can tell you that I wish I had that crisis response network during Covid. It would absolutely help us secure American jobs and keep our supply chains moving.

Supply Chains The agreement includes a new Labor Rights Advisory Board, made up of government, labor and employer representatives, aimed at improving labor standards in the supply chain.

Trade led supply chain negotiations, one of the four “pillars” of the IPEF talks, which represent the Biden administration’s main economic initiative in Asia, in part to offer countries in the region an option for closer ties with China.

China is not part of the IPEF talks, but it did participate in the Asia Pacific Economic Cooperation (APEC) trade talks in Detroit, promising more inclusive trade on Friday but no joint statement.

The other three pillars of IPEF — trade, climate transition, and energy and inclusion — are more complex and expected to take longer to negotiate, but U.S. officials are looking to make more progress at the APEC summit in San Francisco in November.

Business progress, pushback

U.S. Trade Representative Catherine Tay told reporters that the ministers “reviewed our progress and identified areas that require additional attention.”

The trade pillar does not include negotiations on tariff reductions or market access issues in traditional free trade agreements, but aims to establish common rules on agriculture, labour, environmental standards and trade facilitation.

“We have more work to do, but I am confident that we will start to see results with Pillar 1 in the coming months,” said Tai.

Tai and Raimondo countered complaints from US farm and industry groups that the IPEF lacked market access reforms, undermining other trade deals in the region, including one led by China.

Raimondo says this view reflects a “misunderstanding” of IPEF’s goals.

Tai added that IPEF “From the beginning, it is not a traditional trade agreement. We are not only trying to increase efficiency and independence, we are also trying to increase sustainability, strength and inclusiveness.”

Reporting by David Lauder; Editing by Chizu Nomiyama, David Gregorio and Alistair Bell

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