IPEF 4th Negotiation Held in Busan... Discussion on Prompt Activation of Supply Chain Agreement

Will Trade, Clean Economy, and Fair Economy Achieve Results Within the Year?

Discussions on the activation and implementation of the supply chain agreement (Pillar 2) will continue at the 4th official negotiation of the Indo-Pacific Economic Framework (IPEF). In principle, the agreement can only be activated after all 14 member countries, including the United States, Japan, Australia, Singapore, Vietnam, and India, complete their domestic procedures. However, to expedite implementation, plans are being discussed to allow activation once only some countries complete the procedures.

The Ministry of Trade, Industry and Energy announced that it will review future plans for the prompt activation and implementation of Pillar 2, which has already been concluded, during the IPEF negotiations held in Busan from the 9th to the 15th.

This negotiation is the first official meeting since the conclusion of Pillar 2 in Detroit, USA, last May. Approximately 650 government negotiators, led by deputy minister (or vice minister) level representatives from 14 countries, are participating. On the Korean side, Director General Noh Geon-gi of the Trade Negotiations Office is leading the delegation, with representatives from 21 ministries attending the negotiations.

To this end, the Ministry of Trade, Industry and Energy plans to hold a closed-door international seminar on supply chains as a side event on the 12th. Experts and institutions from Korea, Australia, the United States, and Japan will participate to discuss effective ways for participating countries, including developing nations, to implement the supply chain agreement, such as through a supply chain crisis monitoring system.

Participating countries are also accelerating negotiations aiming to achieve visible results within the year in Pillar 1 (Trade), Pillar 3 (Clean Economy), and Pillar 4 (Fair Economy) negotiations. The Ministry explained, "We plan to exhibit models of projects and products related to clean energy technologies such as nuclear power, hydrogen, and carbon capture, utilization, and storage (CCUS) by Korean companies at the negotiation venue to promote industrial technological capabilities."

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy evaluated, "Korea proposed a mechanism for supply chain stabilization in the Pillar 2 negotiations, which was reflected, and played an important role in concluding the negotiations through mediation efforts among participating countries." He added, "As IPEF will be a key platform for expanding trade and stabilizing supply chains in the Indo-Pacific region, we will take a leading role in the negotiations to lead trade norms."

Ahn Deok-geun, Director-General for Trade Negotiations at the Ministry of Trade, Industry and Energy (center), is taking a commemorative photo at the Indo-Pacific Economic Framework (IPEF) Ministerial Meeting held in Los Angeles, USA, on September 8 last year (local time).
[Image source=Yonhap News]

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