Article: Building a Prosperous Future: Unveiling the Benefits of IPEF Supply Chain Agreement (Pillar II)

Abstract

The Indo-Pacific Economic Framework for Prosperity (IPEF) is yet to be explored in terms of a new turn in the Indo-Pacific Strategy, and also in terms of benefit to various member countries. The United States (US) launched the IPEF with thirteen initial partners. The IPEF Supply Chain agreement is novel, and through various bodies such as the Supply Chain Council, Labour Rights Advisory Board and Crisis Response Network, seeks to (1) build a collective understanding of supply chain risks; (2) improve crisis coordination and response to supply chain disruption; (3) ensure that workers and businesses, especially Micro Small and Medium Enterprises in the economies of IPEF members, benefit from the resilient, robust and efficient supply chain; (4) ensure a sufficient number of skilled workers in critical sectors and key goods; and (5) create/provide opportunities for technical assistance and capacity building. The IPEF Supply Chain agreement also builds on a partnership model among selected countries based on a shared understanding of the supply chain, associated risk, priority etc. This short article attempts to analyse the IPEF Supply Chain Agreement, labour rights in the supply chain, and a possible shift from the Asia-Pacific to the Indo-Pacific with the regional supply chain and trusted trade partners (friendshoring). The article, among other matters, explores the potential benefits for India. IPEF, Supply Chain, Asia-Pacific, Indo-Pacific, Labour Rights, trusted trade partners, friendshoring