New Delhi [India], July 31 (ANI): India, along with 13 other Indo-Pacific Economic Framework (IPEF) partners, has inaugurated three pivotal supply chain bodies under the landmark Indo-Pacific Economic Framework for Prosperity (IPEF) Agreement, aimed at bolstering supply chain resilience in the region.
According to a press release by the Ministry of Commerce and Industry, the inaugural virtual meetings of the Supply Chain Council (SCC), Crisis Response Network (CRN), and Labor Rights Advisory Board (LRAB) mark a significant step towards enhanced cooperation among partner countries to strengthen supply chain resilience and competitiveness.
During their inaugural meetings, the 14 partners of the Indo-Pacific Economic Framework (IPEF) reaffirmed their commitment to enhancing cooperation to bolster the resilience and competitiveness of critical supply chains.
Their goal is to better prepare for and address disruptions that could threaten economic prosperity while also advancing labor rights.
The IPEF Supply Chain Resilience Agreement, a pioneering initiative, was signed in November 2023 in Washington D.C. by Union Minister of Commerce and Industry, Piyush Goyal, along with ministers from other IPEF member countries.
The agreement aims to fortify IPEF supply chains, making them more resilient, integrated, and effective in supporting economic development across the Indo-Pacific region. Ratified in February 2024, it has been in force since then.
Minister Goyal previously emphasized India’s global production capabilities in key sectors, which offer diversification opportunities for IPEF partners, read the press release.
At the IPEF Ministerial meeting in Singapore in June 2024, Secretary of the Department of Commerce, Sunil Barthwal, highlighted India’s aspirations to become a key player in the global supply chain, leveraging its skilled workforce, natural resources, and supportive policies, read the press release.
The Indian government is proactively working to ensure India’s involvement in diverse and reliable supply chains.
In line with the Supply Chain Agreement, three key bodies have been established- the Supply Chain Council, the Crisis Response Network, and the Labor Rights Advisory Board.
The Supply Chain Council will focus on targeted actions to strengthen critical supply chains related to national security, public health, and economic well-being.
The Crisis Response Network will provide a platform for collective emergency responses to urgent disruptions, while the Labor Rights Advisory Board will bring together workers, employers, and governments to enhance labour rights and workforce development across regional supply chains.
India underscored the importance of a resilient supply chain network and ongoing consultations with stakeholders to address sectors critical to national security, public health, and economic stability.
The need for collaboration in skill development was emphasized, highlighting the priority of identifying skill gaps and ensuring adequate technical assistance for workforce development and digitalization.
During the meetings, each of the three bodies elected a Chair and Vice Chair for a two-year term- Supply Chain Council: USA (Chair) and India (Vice Chair), Crisis Response Network: Republic of Korea (Chair) and Japan (Vice Chair), Labor Rights Advisory Board: USA (Chair) and Fiji (Vice Chair), read the press release.
The Supply Chain Council set Terms of Reference and outlined initial priorities to be discussed further at its first in-person meeting in Washington D.C. in September 2024, coinciding with the Supply Chain Summit.
The Crisis Response Network focused on near and long-term priorities, including a tabletop exercise, with its first in-person meeting planned alongside the Summit.
The Labor Rights Advisory Board addressed priorities for strengthening labour rights and reviewed labour provisions in the IPEF Clean Economy and Fair Economy Agreements.
The IPEF, launched on May 23, 2022, in Tokyo, Japan, includes 14 countries: Australia, Brunei, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Vietnam, and the USA.
It aims to enhance economic engagement and cooperation to promote growth, stability, and prosperity in the region. The framework comprises four pillars: Trade (Pillar I), Supply Chain Resilience (Pillar II), Clean Economy (Pillar III), and Fair Economy (Pillar IV). India is involved in Pillars II to IV and maintains observer status in Pillar I. (ANI)
