The Indo-Pacific Economic Framework for Prosperity (IPEF) Agreement Relating to Supply Chain Resilience, generally referred to as the Supply Chain Agreement, will enter into force on February 24, 2024.
The 14 IPEF partners – the United States, Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam – negotiated the IPEF Supply Chain Agreement to establish a framework for deeper collaboration to prevent, mitigate, and prepare for supply chain disruptions, such as those experienced in recent years from the COVID-19 pandemic.
U.S. Secretary of Commerce Gina Raimondo hailed the development. “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 for the collective benefit of our countries’ workers and businesses,” she said.
Since the signing of the IPEF Supply Chain Agreement in November 2023, five IPEF partners – Fiji, India, Japan, Singapore and the United States – have deposited their instruments of ratification, acceptance, or approval, triggering the Agreement’s entry into force provision.
With the Agreement’s entry into force on February 24, 2024, the focus in the coming months will turn to various milestones set out in the Agreement related to establishing three supply chain bodies – the Supply Chain Council, Crisis Response Network, and Labor Rights Advisory Board, including:
The IPEF Supply Chain Agreement was negotiated pursuant to the Ministerial Statement on Pillar II (Supply Chains) released during the IPEF Ministerial meeting in September 2022 in Los Angeles, California. Negotiations were substantially concluded in May 2023, after approximately six months of negotiations.
The text of the agreement was made public in September 2023. On November 14, 2023, Secretary of Commerce Gina Raimondo and her counterparts formally signed the landmark agreement in San Francisco, California.
Links:
September 2022 Ministerial Statement for Pillar II
IPEF Supply Chain Agreement Text
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