[1/5] US Secretary of Commerce Gina Raimondo speaks with delegates at the Indo-Pacific Economic Framework meeting in Detroit, Michigan, US, May 27, 2023. REUTERS/Rebecca Cook
DETROIT, May 27 (Reuters) – Trade ministers from 14 countries in the US-led Indo-Pacific Economic Framework (IPEF) talk “substantially complete” a deal to make supply chains more resilient and secure, the Commerce Department said on Saturday . the first tangible results of years of negotiations.
US Commerce Secretary Gina Raimondo told a press conference in Detroit that the “first of its kind” agreement calls for countries to form a council to coordinate supply chain activities and create a “Crisis Response Network” to support IPEF- to warn countries early of potential supply disruptions. .
The deal provides IPEF countries with an emergency communications channel to seek support during supply chain disruptions, coordinate more closely during a crisis and recover more quickly.
Raimondo cited semiconductor shortages during the COVID-19 pandemic that shut down US auto production and left thousands of workers idle.
“I can tell you I would have loved to have had that Crisis Response Network during COVID. It would definitely have helped us secure US jobs and keep supply chains moving,” she said.
The supply chain agreement also includes a new labor rights advisory council, aimed at raising labor standards in supply chains, made up of representatives from government, workers and employers.
Trade led supply chain negotiations, one of four “pillars” in the IPEF talks, which represent the Biden administration’s main economic initiative in Asia, intended in part to offer countries in the region an alternative to closer ties with China .
China is not part of the IPEF discussions, but took part in the Asia Pacific Economic Cooperation (APEC) trade talks in Detroit, which concluded on Friday with a pledge for more inclusive trade, but no joint statement.
The other three IPEF pillars — trade, climate transition, and labor and inclusion — are more complex and are expected to take longer to negotiate, but US officials aim for more results by the time of the APEC leaders’ summit in San Francisco in November.
TRADE PROGRESS, PUSHBACK
U.S. Trade Representative Katherine Tai told reporters that ministers have “monitored our progress and identified the areas where we need additional attention.”
The trade pillar does not include negotiations on tariff reductions or other market access aspects of traditional free trade agreements, but seeks common rules on agriculture, labour, environmental standards and trade facilitation.
“We have more work to do, but I am confident that we will see results under Pillar 1 in the coming months,” said Tai.
Tai and Raimondo have countered complaints from US agricultural and industry groups that IPEF lacks market access improvements, putting it at a disadvantage against other trade deals in the region, including one led by China.
Raimondo said that view reflects a “misunderstanding” of IPEF’s goals.
Tai added that IPEF “is not a traditional trade deal from the very beginning. We’re not just trying to maximize efficiency and liberalization. We’re trying to promote sustainability, resilience and inclusiveness.”
Reporting by David Lawder; Edited by Chizu Nomiyama, David Gregorio and Alistair Bell