INDIA SIGNS IPEF SUPPLY CHAIN AGREEMENT WITH PARTNER NATIONS

India has called for redoubling efforts to ensure expeditious implementation of all the action-oriented collaborative elements comprising the Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement, namely IPEF Pillar-III (Clean Economy), Pillar-IV (Fair Economy) and the Agreement on the Indo-Pacific Framework for Economic Prosperity.

- NIVEDITA MUKHERJEE

India had joined Pillars II (Supply Chains) to Pillar IV of the IPEF following its launch on 23 May 2022 jointly with the USA and other 14 partner countries of the Indo-Pacific region to strengthen economic engagement across a critical region comprising 40 per cent of global GDP and 28 per cent of global goods and services trade. India has an observer status in Pillar-I which is trade.

The first-of-its-kind IPEF Supply Chain Resilience Agreement was signed by Commerce and Industry Minister Piyush Goyal along with Ministers from other IPEF partner countries, setting the stage for making supply chains more resilient, robust and well-integrated which can contribute towards economic development and progress of the region as a whole.

The substantial conclusion of negotiations paves the way for establishing a ministerial-level IPEF Council and Joint Commission. The IPEF Council would consider matters affecting the collective operation of the agreements related to the four IPEF pillars, as well as consider the possibility of adding new members or new agreements. The Joint Commission would monitor work under the agreements negotiated under Pillars II-IV, to identify ways to reduce duplication and potential conflicts and enable work between or across those agreements.

While these signal a substantial conclusion of text-based negotiations on the three pillars, Minister Goyal has emphasized - under the Clean Economy (Pillar-III) -- the need for increased collaboration among partners on research and development of innovative and affordable climate-friendly technologies. India is also seeking to prioritize the implementation of the cooperative work programmes envisaged under this pillar, including the hydrogen supply chain initiative and other proposals such as India's proposal for biofuels and e-waste recycling.