An agreement signed by the United States and 13 other Indo-Pacific countries aimed at reinforcing their supply chains will enter into force on Feb. 24, the Commerce Department said Wednesday.
The U.S.-led Indo-Pacific Economic Framework deal will allow the countries, including Australia, India, Indonesia, Japan, Singapore and Thailand, to work more closely in dealing with supply chain disruptions, such as in the event of a pandemic, by helping each other secure critical industrial items and minerals.
The economic initiative, known as IPEF, was launched by U.S. President Joe Biden in Tokyo in May 2022 to create high-level common standards for commercial activities. China is not part of the framework, and it is seen as a tool to reduce reliance on the Asian power for semiconductors and other key materials.
"I am thrilled to see the continued commitment and enthusiasm of the IPEF partners to make concrete progress and deliver tangible outcomes in record time," U.S. Secretary of Commerce Gina Raimondo said in a statement.
With the agreement, she said, the countries will step up efforts to prevent potential disruptions before they arise for the collective benefit of workers and companies.
The accord was inked in November in San Francisco, when Biden hosted the Asia-Pacific Economic Cooperation summit, after the countries largely agreed on its contents in May last year.
IPEF consists of four pillars -- trade, supply chains, clean energy and infrastructure, and tax and anti-corruption.
Unlike in traditional talks on economic integration, the IPEF members are not discussing plans to lower tariffs or expand market access.
Even so, the countries, accounting for about 40 percent of the global economy, were unable to strike a deal on the trade pillar during ministerial talks held ahead of the APEC summit.
But they announced the "substantial conclusion" of negotiations on the remaining two sectors.
