IPEF finishes talks on improving supply chain resilience

DETROIT: Fourteen IndoPacific countries have finished negotiations about improving supply chain resilience as part of the IndoPacific Economic Framework.

The framework (IPEF), launched in September last year, includes most members of Asean group, as well as the United States, Japan, South Korea and India. Together, they represented 40% of the world GDP in 2021.

New Zealand Trade and Export Growth Minister Damien O’Connor met his counterparts in Detroit for the supply chains agreement — one of four being negotiated as part of the IPEF.

It aims to improve the resilience, efficiency, productivity, sustainability, transparency, diversification, security, fairness and inclusivity of supply chains involving of the partner countries.

Some of the ways the countries want to do this will be via collaborative and individual actions, including:

providing a framework to build their collective understanding of significant supply chain risks.

improving crisis coordination and response to supply chain disruptions and working together to support the timely delivery of affected goods during a crisis.

better preparing businesses in the economies of the IPEF partners to identify, manage and resolve supply chain bottlenecks, including by strengthening supply chain logistics and infrastructure.

facilitating cooperation, mobilising investments and promoting regulatory transparency in sectors and goods critical to national security, public health and safety, or the prevention of significant or widespread economic disruptions.

respecting, promoting and realising in good faith, labour rights in supply chains.

ensuring the availability of a sufficient number of skilled workers in critical sectors and key goods.

identifying opportunities for technical assistance and capacity building.

respecting market principles, minimising market distortions, including unnecessary restrictions and impediments to trade, and protecting confidential business information.

Mr O’Connor said the Covid19 pandemic and RussiaUkraine war had shown the importance of making supply chains resilient.

The IPEF agreement would form part of the plan to protect New Zealand’s economy from the sharp edges of a global downturn, Mr O’Connor said. — RNZ