IPEF Pillars Update

Partners of the Indo-Pacific Economic Framework for Prosperity (IPEF) convened in Detroit Saturday to affirm their commitment towards achieving inclusive economic growth, sustainable clean economies, and robust anti-corruption measures.

The coalition of 14 nations reached a substantial conclusion on the negotiations of a groundbreaking international IPEF Supply Chain Agreement.

The IPEF, launched in May 2022, comprises the United States, Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and Viet Nam.

Pillar I: Trade Delegates from the participating nations reviewed negotiations and progress towards achieving high-standard, inclusive, free, fair, and open trade commitments. Partners recognized the importance of formulating trade and technology policies that generate investments and promote sustainable economic growth. A notable focus of this pillar was the upliftment of Indigenous Peoples, local communities, women, and small-to-medium enterprises.

Pillar III: Clean Economy The members welcomed progress towards achieving individual climate goals and promoting low-and zero-emission goods and services. Key proposals include the initiation of a regional hydrogen initiative, seeking to deploy low-carbon and renewable hydrogen throughout the region. The partners also underscored the importance of job creation and respect for labor rights in the transition to a clean economy.

Pillar IV: Fair Economy Efforts towards implementing anti-corruption measures and tax initiatives were commended. The group noted progress towards developing an agreement that would bolster effective anti-corruption and tax measures, to spur trade and investment among the economies.

Pillar II:  Supply Chain Agreement The IPEF partners announced a landmark consensus on negotiations for the first-ever international IPEF Supply Chain Agreement. This agreement seeks to fortify the resilience, productivity, sustainability, and inclusivity of supply chains through both individual and collaborative efforts.

Under the proposed agreement, the IPEF partners plan to monitor significant supply chain risks, coordinate response to disruptions, empower businesses to identify and resolve supply chain issues, promote labor rights, and uphold market principles.

The proposed agreement includes the establishment of three new IPEF Supply Chain bodies: The IPEF Supply Chain Council, the IPEF Supply Chain Crisis Response Network, and the IPEF Labor Rights Advisory Board. These bodies are aimed at bolstering supply chain resilience and promoting labor rights.

"The partners are committed to operationalizing this landmark Agreement as soon as practicable," the joint statement read. The members plan to initiate preparatory work to bolster supply chains, taking into account the different economic and geographic characteristics of the partners.