News Excerpt:

On July 31, the Commerce Ministry announced that India has been elected Vice-Chair of the Supply Chain Council (SCC), one of the three key bodies formed under the 14-member Indo-Pacific Economic Framework (IPEF).

More detail about news:

• The SCC has adopted its Terms of Reference and outlined initial work priorities, which will be further discussed at its first in-person meeting scheduled for September 2024 in Washington, coinciding with the Supply Chain Summit.
• India, along with 13 other IPEF partners, established three bodies under the IPEF’s agreement on supply chain resilience, which took effect in February 2024.
• These are the three bodies:
• Supply Chain Council (SCC) - The SCC is tasked with focusing on action-oriented initiatives to bolster supply chains critical to national security, public health, and economic stability.
• Crisis Response Network (CRN)  - CRN will offer a platform for coordinated emergency responses to imminent disruptions.
• Labor Rights Advisory Board (LRAB) - LRAB will work on strengthening labor rights and workforce development across regional supply chains.
• The Ministry highlighted that the initial virtual meetings of the Supply Chain Council (SCC), Crisis Response Network (CRN), and Labor Rights Advisory Board (LRAB) represent significant progress in enhancing supply chain resilience among partner countries.
• Objective of Agreement: The agreement aims to mitigate economic risks associated with supply chain disruptions, improve crisis coordination, and reduce member countries' dependence on China. It also facilitates timely communication about potential supply disruptions.

About IPEF: 

• Launched on May 23, 2022, in Tokyo, the IPEF includes Australia, Brunei, Fiji, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Vietnam, and the U.S.
• The framework aims to strengthen economic engagement and cooperation to promote growth, stability, and prosperity in the region.
• The 14 IPEF partners account for 40 percent of global GDP and 28 percent of global trade in goods and services. 

Formation:

• During the meetings, each body elected a Chair and Vice-Chair for a two-year term.
• The U.S. will chair both the SCC and the LRAB, with Korea and Japan serving as chair and vice-chair for the CRN. Fiji was elected as the vice-chair for the LRAB.

Four Key Pillars:

• IPEF initiated discussions on future negotiations focusing on four key pillars:
• Trade
• Supply Chains
• Clean Energy, Decarbonization, and Infrastructure
• Tax and Anti-Corruption
• The IPEF is structured to be flexible, allowing partners to participate in selected pillars without the obligation to join all four.
• India participates in Pillars II to IV of the IPEF and holds observer status in Pillar I.

Terms of Reference:

• The SCC adopted its Terms of Reference and discussed initial priorities, which will be further explored during the September 2024 in-person meeting.
• The CRN focused on setting priorities, including a tabletop exercise, and planned its initial in-person meeting to coincide with the summit.
• The LRAB addressed priorities related to enhancing labor rights across IPEF supply chains.