The U.S. Department of Commerce said Tuesday that South Korea and Japan have been picked to lead the activities of one of the three supply chain bodies set up under the Indo-Pacific Economic Framework for Prosperity (IPEF), a new U.S.-led economic initiative.
The first ever meetings of the three councils were held online Tuesday, with South Korea being elected as chair and Japan as vice chair of the Crisis Response Network. The United States will chair the other two new bodies — the Supply Chain Council and the Labor Rights Advisory Board.
“To safeguard our supply chains from future global disruptions, whether it be a pandemic or natural disaster, we knew we needed to act swiftly and decisively,” U.S. Secretary of Commerce Gina Raimondo said in a statement.
The three councils were set up based on a supply chain agreement under the IPEF framework, which came into effect in February. IPEF consists of 14 countries including the U.S. and Japan.
The Supply Chain Council compiled a plan on diversifying supply sources of critical materials and improving logistics. If a crisis occurs, the council will share information with the Crisis Response Network to devise cooperation measures to tackle the situation.
In an apparent effort to counter China’s growing influence, the IPEF initiative aims to create common rules in the four sectors of trade, supply chains, “clean economy” and “fair economy.” The last sector covers tax and anti-corruption measures, while the clean economy deals with infrastructure, clean energy and decarbonization.
Trade is the last remaining pillar without an agreement.