India elected as the Vice-Chair of the Supply Chain Council
Context:
India has been elected as the Vice-Chair of the Supply Chain Council under the Indo-Pacific Economic Framework for Prosperity (IPEF) Agreement, aimed at strengthening supply chain resilience in the Indo-Pacific region.
- This initiative involves India and 13 other IPEF partners, focusing on critical supply chains, labor rights, and crisis response.
Key Highlights:
- Election and Roles:
- India elected as Vice-Chair of the Supply Chain Council.
- USA elected as Chair of the Supply Chain Council.
- Republic of Korea elected as Chair of the Crisis Response Network with Japan as Vice-Chair.
- USA elected as Chair of the Labor Rights Advisory Board with Fiji as Vice-Chair.
- Establishment of Supply Chain Bodies:
- Three supply chain bodies established: Supply Chain Council (SCC), Crisis Response Network (CRN), and Labor Rights Advisory Board (LRAB).
- These bodies will focus on strengthening supply chains, emergency response, and labor rights.
- Inaugural Meetings:
- Inaugural virtual meetings held to discuss and adopt initial priorities.
- First in-person meetings planned for September 2024 in Washington, D.C. during the Supply Chain Summit.
- India’s Role and Views:
- India emphasized the importance of a resilient supply chain network.
- Highlighted the need for collaboration in skill development and digitalization for a resilient supply chain ecosystem.
- Supply Chain Resilience Agreement:
- Signed in November 2023 by Union Minister Piyush Goyal and other IPEF partner countries.
- Ratified in February 2024 and aims to make supply chains more resilient and integrated.
Significance:
- Enhanced Cooperation: Strengthens economic engagement and cooperation among IPEF partners, enhancing stability and prosperity in the Indo-Pacific region.
- Supply Chain Resilience: Aims to build robust and resilient supply chains critical to national security, public health, and economic well-being.
- Labor Rights: Promotes workforce development and strengthens labor rights across regional supply chains.
- Crisis Response: Establishes a collective emergency response mechanism for supply chain disruptions.
- India’s Leadership: Showcases India’s growing role in global supply chains and its commitment to economic development and collaboration in the Indo-Pacific region.
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