The US and other IPEF members in Asia agreed to strengthen the supply chains of essential goods and support each other in the event of shortages.
Countries participating in the Indo- Pacific Economic Framework (IPEF), including the United States and 13 Asian members, met in Detroit, Michigan, last weekend to discuss trade, supply chains, the green economy, and the equitable economy.
Representatives from various countries have reached an agreement on strengthening the supply chains for essential goods such as chips and critical raw materials to reduce dependence on external sources. The parties hope to soon finalize a written agreement.
US Commerce Secretary Gina Raimondo chaired a meeting of the Indo- Pacific Economic Framework (IPEF) in Detroit, Michigan, on May 27. Photo: Reuters
Under the agreement, IPEF countries will share information to enhance inter-regional procurement and assist each other in the event of shortages. This move comes after the Covid-19 pandemic disrupted supply chains, negatively impacting the economies of IPEF countries.
"The proposed agreement will establish an emergency communication channel for IPEF partners to seek support during supply chain disruptions and facilitate information sharing and cooperation during crises. This will enable a faster, more effective response to minimize negative impacts on partner economies," U.S. Commerce Secretary Gina Raimondo said in a statement after the meeting.
According to representatives from the US and Japanese governments, this is the first multilateral supply chain agreement to be realized since the IPEF was established.
The IPEF, launched in Tokyo, Japan, in May 2022, includes the United States, Japan, South Korea, Australia, India, New Zealand, Fiji, and several Southeast Asian countries. This initiative aims to integrate trading partners into agreed-upon standards across four key areas: the digital economy, supply chains, clean energy infrastructure, and anti-corruption measures.
Ngoc Anh (According to Nikkei )
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