Commerce Sets February Effective Date for IPEF Supply Chain Agreement
The Indo-Pacific Economic Framework's supply chain pillar will take effect Feb. 24, the Commerce Department announced this week. The pillar is expected to improve coordination among IPEF countries as they look to diversify supply chains, resolve logistical bottlenecks, remove obstacles to trade and more (see 2309080050).
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Commerce said the agreement will specifically help the 14 IPEF nations prevent and prepare for supply chain disruptions, “such as those experienced” during the COVID-19 pandemic. “With the IPEF Supply Chain Agreement shortly entering into force, we will now move forward and work collaboratively through this innovative framework with the goal of strengthening our supply chains and preventing potential disruptions before they arise,” Commerce Secretary Gina Raimondo said.
Commerce said the “focus in the coming months will turn to various milestones set out in the Agreement,” including creating three supply chain bodies: the Supply Chain Council, Crisis Response Network and Labor Rights Advisory Board. IPEF plans to choose members for the three bodies no later than March 25 and select the chairs for the bodies by April 24. Each body will adopt the “terms of reference” by June 23.
IPEF countries will also provide a “list of critical sectors and key goods for cooperation under” the supply chain agreement within 120 days after the agreement takes effect for each country. The nations will develop guidelines for the “facility-specific reporting mechanism on labor rights inconsistencies in IPEF supply chains” by Aug. 22.
So far, Fiji, India, Japan, Singapore and the U.S. have “deposited their instruments of ratification” for the supply chain agreement to take effect.