An agreement involving the United States, Japan and other Indo-Pacific economies on supply chain resilience took effect Saturday, in what is being dubbed a first-of-its-kind multinational deal laying out steps for enhancing collaboration in times of significant disruption in the region.
The deal, negotiated under the U.S.-led Indo-Pacific Economic Framework launched in 2022, allows members to help each other secure critical items in times when supply chains are disrupted, such as during a pandemic. Since China is not part of IPEF, some consider it a means of reducing reliance on the country for semiconductors and other key goods.
Among the 14 economies that have joined the framework, five countries — the United States, Japan, Fiji, India, and Singapore — saw the supply chain agreement enter into force, having completed the necessary domestic procedures.