U.S., Indo-Pacific Talks Produce Supply Chain Early Warnings Deal

by Carolyn Mathas

Fourteen countries in the U.S.-led Indo-Pacific Economic Framework (IPEF) talks reached a deal to make supply chains more resilient and secure. This agreement is the first result of year-long negotiations.

Under the “first of its kind” agreement, the countries will form a council to coordinate supply chain activities and a “Crisis Response Network” to give early warnings of potential supply disruptions.

Highlights of the deal include:

  • An emergency communications channel for IPEF countries to seek support during supply chain disruptions, closely coordinate during a crisis, and recover fast
  • A labor rights advisory board to raise labor standards in supply chains, with government, worker, and employer representatives

Commerce-led supply chain negotiations aimed to provide countries with an alternative to closer ties with China, and China is not a part of IPEF discussions.

The IPEF does not represent a traditional trade deal. It does not only concentrate on maximizing efficiencies and liberalization but also on promoting sustainability, resilience, and inclusiveness.

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