Indo-Pacific Economic Framework for Prosperity (IPEF) Focuses on Supply Chains

The last few years have 
brought up a number of 
supply chain issues.

Supply chains are important and that comes from the development of treaties, agreements, and other understandings of how to conduct business. With the many different supply chain issues that have arisen over the past few years there is no wonder there is an attempt to improve these pathways. There will be a level of coordination among a number of nations to help improve access to certain resources for all of them.

Consider that manufacturing and nation building requires a level of consistent and steady supplies. Geopolitical issues, COVID, and canal blockage have taught us that certain materials and supplies might better be secured through more manageable networks. (I wrote a few pieces a while ago Adaptive Supply Chains, Clusters and Networks, Supply Chain Integration,  DC Exports)

You may also be interested in the purposes of supply chain enhancements....

The White House states "..revitalize U.S. manufacturing, facilitating the steady supply of the materials, components, and inputs that U.S. companies rely on to compete effectively on the world stage."(Department of Commerce, 2023, para 5)  

Read Substantial Conclusion of Negotiations on Landmark IPEF Supply Chain Agreement

The report further goes on to say the activities of the IPEF are in line with future industry investments, "$400 billion of new private sector investment in major manufacturing projects in sectors like clean energy, semiconductor fabrication, and biotechnology, since President Biden took office. This has resulted in nearly 800,000 new manufacturing jobs and the most robust manufacturing growth since the 1950s."(US Dept. of Commerce, 2023, para 17).

Supply chains can impact our businesses and the competitive position of those businesses. Furthermore, improved supply chains develop resource obtainment and overall adaptability to keep those supply chains functionable. We have learned that disruptions create economic chaos. As an additional point, when supply chains become efficient they also impact the root costs of other aspects of the economy. Export infrastructure is fundamental to strong supply chains.

 IPEF Met in Detroit to discuss to discuss Pillars I, III, IV. You may read more about the three pillars in Press Statement for the Trade Pillar, Clean Economy Pillar, and Fair Economy Pillar (Department of Commerce, 2023).

Pillar I (Trade)

Pillar III (Clean Economy)

Pillar IV (Fair Economy)

Department of Commerce, (May 27th, 2023). Substantial Conclusion of Negotiations on Landmark IPEF Supply Chain Agreement. [Press Release]. https://www.commerce.gov/news/press-releases/2023/05/substantial-conclusion-negotiations-landmark-ipef-supply-chain

Department of Commerce (May 27th, 2023). Press Statement for the Trade Pillar, Clean Economy Pillar, and Fair Economy Pillar. [Press Release] https://www.commerce.gov/news/press-releases/2023/05/press-statement-trade-pillar-clean-economy-pillar-and-fair-economy