Industry News

Indo-Pacific Framework Comments Due by June 21

Jun, 4, 2024
By: Chaney A. Finn

The Indo-Pacific Economic Framework for Prosperity (IPEF) officially took effect on February 24, 2024, intended to strengthen ties in the Indo-Pacific and counteract what the United States sees as inappropriately aggressive trade policies exhibited by the largest economy in the region, China. We reported on the pillars of the framework, the participating members, and the timeline of the establishment of certain supply chain bodies in a previous post.

The Department of Commerce is currently seeking comments from the trade community and associated industries that will be used by the IPEF Supply Chain Council “to inform its work on assessing and analyzing risk in global supply chains,” including a determination of an initial list of “critical sectors” and “key goods.” The council will also use the comments to “inform other analytical tools and methodologies developed by Commerce's Industry & Analysis unit to support resilient supply chains for U.S. industry.” The comment period closes on June 21, 2024.

The IPEF builds on the Commerce Departments’ supply chain resilience initiative in the region to prevent supply chain disruptions of critical minerals and other critical products, such as semiconductors. Disruptions in these areas could pose economic and national security threats to the United States. The implementation of the IPEF is intended to mark a new era of trade agreements, transitioning from solely lowering tariffs to agreements that establish a “deeper economic engagement” with trading partners, extending beyond market access and reduced tariff and duty amounts by including provisions such as environmental and labor standards. With this change comes resistance from Congress which argues that these types of agreements lack constitutional authority because they are implemented without Congressional approval.

If you have any questions about global trade developments, trade in the Indo-Pacific region, or utilizing trade agreements, do not hesitate to contact any attorney at Barnes, Richardson & Colburn, LLP.