Decision to “strengthen supply chain in critical items” from Indo-Pacific countries

Trade ministers from the USA and Indo-Pacific countries will meet in Detroit, Michigan, USA, as part of the Asia Pacific Economic Cooperation (APEC).

During the meeting, the ministers will agree on strengthening the supply chain for medicines, chips and other critical items urgently needed under the IPEF.

Aiming to make the supply chain resilient, this agreement will be the first among 14 IPEF member countries, which aims to balance China’s economic influence in the region.

Under the agreement, it is aimed that IPEF countries, including Australia, Indonesia, India, South Korea and Thailand, take faster action in emergencies, procure important materials and share information rapidly.


IPEF

US President Joe Biden announced in May 2022 that they were launching IPEF with 13 countries, including Japan.

In addition to the USA and Japan, the IPEF includes India, South Korea, Australia, Indonesia, Thailand, Singapore, Malaysia, Philippines, Vietnam, New Zealand and Brunei.

Biden said the initiative would help the United States work more closely with Asian countries in areas such as supply chains, digital trade, clean energy and the fight against corruption.

Currently, with its membership volume, IPEF is equivalent to 40 percent of the world’s gross national product.

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