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The United States (US) 14-member plurilateral group initiated by the Indo-Pacific Economic Framework (IPEF) for Prosperity has identified semiconductors, critical minerals, batteries, and chemicals as critical sectors under its supply chain resilience agreement signed earlier this year, the commerce department said on Monday.
The 14 member nations include India, Australia, Brunei, Fiji, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the US, and Vietnam.
Interested partner countries can join the ‘action plan teams’ within a month of their establishment to explore possible collaborative efforts among countries to enhance resilience in the supply chain of these specific critical sectors and key goods.
“The formation of action plan teams in these areas is highly relevant today in the majority of critical supply chains, given their supply concentration and the lessons learnt from significant disruptions faced during the COVID-19 pandemic. There are challenges and strengths in these areas across all IPEF partners,” an official statement said. Another team related to the healthcare/pharma sector is also in the offing.
For instance, the use of specific critical minerals is indispensable for sectors including clean energy, electronics, defence, transportation, telecommunications, fertilisers, and pharmaceuticals. One of the key challenges lies in the supply risk due to its concentration and global market dynamics, which can result in price volatility and uncertainty, leading to supply disruptions.
The supply chain resilience pact (Pillar II) under IPEF has been in effect since February. It seeks to strengthen supply chains through economic engagement among partner countries. Under this agreement, three institutional bodies have been created – the Supply Chain Council (SCC), the Crisis Response Network (CRN), and the Labour Rights Advisory Board (LRAB).
The first in-person meeting of the supply chain council was held in Washington on September 12, followed by a crisis response network meeting a day later.
“IPEF partner countries, including India, are committed to actively engaging in the action plan teams and subcommittees of their interest as they work together in a collaborative and co-operative manner to develop actionable policies and recommendations aimed at strengthening supply chain resilience across the IPEF region,” the statement said.
First Published: Sep 23 2024 | 7:30 PM IS
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