New Delhi [India], September 24 : Union Commerce and Industry Minister Piyush Goyal, along with 13 other ministers, collectively welcomed the imminent entry into force of three landmark IPEF agreements- the Clean Economy Agreement (October 11, 2024), the Fair Economy Agreement (October 12, 2024), and the Overarching Agreement on IPEF (October 11, 2024).
These agreements are set to deepen economic cooperation among the IPEF partners and drive tangible benefits through sustained collaboration.
According to the Ministry of Commerce and Industry, the ministers virtually attended the third Ministerial meeting of the Indo-Pacific Economic Framework for Prosperity (IPEF), focusing on pillars II, III, and IV.
During the meeting, the ministers reviewed the significant progress made under the Supply Chain Agreement, aiming to bolster regional supply chain resilience.
The discussions focused on improving preparedness for future disruptions, building competitive supply chains, and safeguarding labour rights. Minister Goyal highlighted India's election as Vice Chair of the IPEF Supply Chain Council, with the U.S. serving as Chair.
He also noted Korea and Japan's leadership roles in the Crisis Response Network, and the U.S. and Fiji in the Labour Rights Advisory Board (LRAB).
India's role in advancing the action plans for three critical sectors--semiconductors, critical minerals, and chemicals--was particularly emphasised. Minister Goyal pointed out the global reliance on these sectors, especially in light of supply disruptions during the COVID-19 pandemic.
Securing the supply of essential minerals is paramount, given their importance in sectors like clean energy, defence, and telecommunications.
Goyal also stressed the importance of resilient agrochemical supply chains, citing the projection that the global agrochemicals market could grow from USD 235.2 billion in 2023 to USD 282.2 billion by 2028.
Additionally, he addressed vulnerabilities in healthcare supply chains, particularly overreliance on a few countries for Active Pharmaceutical Ingredients (APIs) and Key Starting Materials (KSMs). India's focus on logistics and movement of goods under IPEF aligns with Prime Minister Narendra Modi's "Gati Shakti" initiative, which aims to enhance the country's transportation infrastructure and supply chain networks.
The Clean Economy Agreement is seen as a critical step towards addressing global climate challenges. It focuses on energy security, GHG emissions reduction, and the promotion of climate-friendly technologies.
The IPEF ministers commended the eight cooperative work programs (CWPs) that foster collaboration among member countries on key topics, such as hydrogen, carbon markets, and small modular reactors (SMRs).
India's proposal on e-waste urban mining received particular praise, reflecting the country's growing role in promoting sustainable practices.
At the first IPEF Clean Economy Investor Forum in Singapore, investors and project proponents explored a range of innovative investment opportunities in clean energy technologies.
The Fair Economy Agreement underscores IPEF's commitment to anti-corruption measures and efficient tax administration, which will bolster transparency and encourage stronger trade and investment ties.
As part of the agreement's capacity-building initiatives, the U.S. Department of Commerce and Treasury have launched training programmes to assist IPEF partners in implementing anti-corruption provisions, foreign bribery laws, and enhancing tax administration.
Minister Goyal emphasised India's strong anti-corruption framework, driven by Prime Minister Modi's leadership. He reiterated that peer learning and capacity-building efforts are crucial to realising the full potential of the IPEF Fair Economy Agreement.
IPEF ministers agreed to continue monitoring the operationalisation of the Supply Chain, Clean Economy, and Fair Economy Agreements.
The first meetings of the ministerial-level IPEF Council and Joint Commission, established under the Overarching Agreement, are eagerly anticipated as crucial platforms for reviewing progress and ensuring ongoing cooperation among IPEF partners.
Minister Goyal underscored the importance of leveraging each partner's strengths, whether in technology, investment, or skilled labour, to address challenges such as supply chain vulnerabilities and the global green transition.