Commerce Department Seeks Cabinet Approval for Indo-Pacific Supply Chain Agreements

The Department of Commerce and Industry is expected to seek Cabinet approval to sign and ratify the supply chain agreement under the Indo-Pacific Economic Framework (IPEF), negotiations for which concluded in May.

The ministry has presented a draft cabinet memo for inter-ministerial consultations on the deal, which aims to establish an IPEF labor rights advisory committee, resolve facility-specific labor rights disagreements, identify critical sectors and key commodities, and strengthen supply chains. The pact provides for a review after five years and a resignation with a blocking period of three years from the effective date.

“Cabinet approval is required as this is an international agreement. It will be signed after IPEF members complete legal review and domestic procedures,” an official said.
IPEF has 14 countries including India, Australia, USA, Japan, Fiji, Korea, New Zealand, Singapore and Thailand.

The supply chain agreement is also intended to reduce dependence on China. Officials said the pact aims to minimize unnecessary restrictions, speed up regulatory approvals at ports and increase the availability of warehousing investments.

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