Government Releases Draft of IPEF Supply Chain Agreement: "Mutual Cooperation Within 15 Days in Crisis"

Public Opinion Submission Open Until the 4th of Next Month

The government disclosed the draft text of the Indo-Pacific Economic Framework (IPEF) Supply Chain Agreement on the 8th. The draft includes provisions for mutual cooperation within 15 days in the event of a supply chain crisis.

The Ministry of Trade, Industry and Energy announced that the English and Korean drafts of the IPEF Supply Chain Agreement will be posted on the Free Trade Agreement-related website until the 4th of next month, and public opinions on the Korean draft will be collected.

South Korea, the United States, and 12 other participating countries declared the conclusion of the supply chain agreement at the IPEF Ministerial Meeting held in Detroit, USA, last May. The agreement includes the activation of a "Supply Chain Crisis Response Network" composed of participating governments to cooperate mutually during supply chain crises.

First, a new emergency cooperation network will be established to be activated in times of supply chain crises. Previously, when a supply chain crisis occurred due to disruptions in the supply of items highly dependent on a specific country, it took considerable time to identify and connect officials from various countries to find alternative supply sources. However, by utilizing the IPEF crisis response network, within 15 days, cooperation can be received from governments of 14 countries with diverse characteristics, including demand-supply company matching, joint procurement, discovery of alternative shipping and air routes, and expedited customs clearance.

Additionally, according to the IPEF Supply Chain Agreement, participating governments have agreed to refrain from implementing measures that negatively impact supply chains. It is expected that if supply chain disruptions occur due to measures taken by IPEF participating countries with close trade relations with South Korea, effective responses can be made by utilizing IPEF.

An official from the Ministry of Trade, Industry and Energy stated, "The IPEF Supply Chain Agreement is significant in that it establishes a mutually complementary cooperation system involving countries with diverse economic characteristics, including advanced and developing countries, resource-rich countries such as Australia and Indonesia, and technology-leading countries such as the United States and Japan." He added, "It is also expected to serve as a cornerstone for enhancing substantial economic cooperation within the region based on stable supply chains with Indo-Pacific countries, our strategic partners."

The Ministry plans to finalize the Korean draft after reviewing public opinions collected this time with related ministries and experts, and then proceed with domestic procedures for formal signing and other steps.

This content was produced with the assistance of AI translation services.