The US and other IPEF members in Asia agreed to increase the supply chain of essential goods and support each other when shortages occur.
Countries in the Indo- Pacific Economic Framework (IPEF), including the US and 13 members in Asia, met last weekend in Detroit, Michigan, USA, to discuss trade, supply chains, green economy and fair economy.
Representatives of the countries have reached an agreement on increasing the supply chain of essential goods such as chips and important raw materials to reduce external dependence. The parties hope to soon issue a document on this agreement.
US Secretary of Commerce Gina Raimondo chairs 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 intra-bloc procurement and help each other in the event of shortages. The move comes after the Covid-19 pandemic disrupted supply chains, negatively affecting economic activities in IPEF countries.
"The proposed agreement will establish an emergency communication channel for IPEF partners to seek support in the event of supply chain disruptions and facilitate information sharing and cooperation during crises. This will enable faster and more effective responses to minimize negative impacts on partner economies," US Secretary of Commerce Gina Raimondo said in a statement after the meeting.
According to representatives of 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. The initiative aims to integrate trading partners into agreed standards in four key areas: the digital economy, supply chains, clean energy infrastructure and anti-corruption measures.
Ngoc Anh (According to Nikkei )
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