Ministers from the United States, Japan and 12 other Indo-Pacific nations agreed Saturday to strengthen supply chain resilience for critical items, including semiconductor chips and medicines, to respond more promptly to emergencies.
The agreement was reached at a meeting of the U.S-led Indo-Pacific Economic Framework in Detroit and is its first tangible outcome since launching in May last year. It is hoped the move will reduce overreliance on China, which has been increasing its economic clout in the region.
Following the conclusion of negotiations, Japan's Economy, Trade and Industry Minister Yasutoshi Nishimura told reporters that the multilateral agreement is the "first of its kind on supply chains."
Supply chain resilience is one of IPEF's four pillars.
According to a statement released afterward, the plan is to develop a system to collectively understand significant supply chain risks and support the timely delivery of critically important goods during a crisis by improving coordination and response between member states.
While the statement did not mention which goods are considered essential, a Japanese official said the aim is to target critical minerals, semiconductors, new energy technologies and other resources or equipment that could significantly impact society if supplies were halted.
The IPEF represents about 40 percent of global gross domestic product. It currently groups Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, the United States and Vietnam.
