INDO-PACIFIC ECONOMIC FRAMEWORK'S SUPPLY CHAIN RESILIENCE AGREEMENT IS AN ONEROUS DEAL

The Central government must recognize the risks associated with this agreement and develop a suitable strategy to mitigate them.

- Shivanand Pandit

The IPEF is an initiative led by the US and comprised of 13 other countries, including India, Australia, Brunei Darussalam, Fiji, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. Objective is to negotiate rules that address 21st-century challenges and promote fair and resilient trade. The agreement on Supply Chain Resilience aims to enhance crisis coordination and response to supply chain disruptions by encouraging each participating country to identify and monitor its critical sectors. The Supply Chain Resilience Agreement is aimed at reducing dependence on China and enhancing the manufacturing of essential goods within member nations. The agreement will set up three IPEF supply chain bodies - IPEF Supply Chain Council, the Crisis Response Network, and the Labour Rights Advisory Board.

ΤΟ reduce reliance on China and promote the production of essential goods within member countries, on November 14, 2023, the Minister of Commerce and Industry of India signed the Indo-Pacific Economic Framework's (IPEF) Supply Chain Resilience Agreement (Pillar 2) with 13 other countries. The agreement aims to strengthen global supply chains and improve their resilience, stability, and sustainability. The agreement is considered the fastest-concluded plurilateral economic cooperation agreement. The countries in the agreement include India, Australia, Brunei Darussalam, Fiji, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the USA, and Vietnam.