News Except: 

Recently, India, USA and 12 other members of the Indo-Pacific Economic Framework (IPEF) have signed a supply chain resilience agreement.

About IPEF: 

• The Indo-Pacific Economic Framework (IPEF) is an initiative involving 14 member countries, including India, USA, Australia, Japan, Fiji, South Korea, New Zealand, Singapore, and Thailand. 
• This framework represents 40% of the global gross domestic product and 28% of the global trade in goods and services. 
• The primary aim of this collaboration is to enhance economic cooperation and reduce dependence on China by strengthening supply chain resilience among member nations.
• The framework is structured around four pillars: trade, supply chains, clean economy, and fair economy (addressing issues like tax and anti-corruption).
• India has joined all the pillars except the one concerning trade.

Key developments in the IPEF agreement:

• Supply Chain Resilience Agreement: India, USA, and 12 other member countries signed an agreement focused on enhancing supply chain resilience. This agreement aims to reduce reliance on China and relocate the production of critical sectors and essential goods among member nations.
• Agreement Details: The signed supply chain agreement aims to make IPEF supply chains more resilient, integrated, and robust. It is expected to contribute to the economic development of the region as a whole.
• Implementation and Benefits: The pact will come into force after implementation by any five member countries. 
• It is expected to bring benefits like supply chain diversification, increased investments, deeper integration of India into global value chains, support for small and medium enterprises (MSMEs), and the creation of a seamless regional trade ecosystem.
• Establishment of Bodies: The agreement includes the establishment of three new bodies within IPEF to facilitate cooperation among partners: the supply chain council, the supply chain crisis response network, and the IPEF labour rights advisory board. 
• The advisory board aims to promote labour rights, sustainable trade and investment, and opportunities for investment in businesses that respect labour rights.
• Ongoing Negotiations: While the supply chain agreement has been signed, negotiations for the fair economy and clean economy pillars are nearing conclusion. However, the trade pillar is taking more time to finalize.

Conclusion:

These developments highlight the collaborative efforts among member nations to fortify supply chains, foster economic development, and promote sustainable and fair trade practices within the Indo-Pacific region.