The IPEF Supply Chain Agreement is a first-of-its-kind international agreement that will help Australia respond more effectively to supply chain challenges, working closely with IPEF partners.
The IPEF Supply Chain Agreement will help address concentrations in critical supply chains, accelerating the diversification of essential imports and promoting Australia's unique export capabilities in critical minerals and clean energy technologies.
Australia ratified the IPEF Supply Chain Agreement on 12 September 2024.
The IPEF Supply Chain Agreement will establishes three new bodies to enhance cooperation among IPEF partners on supply chain issues.
The IPEF Supply Chain Council
Through the IPEF Supply Chain Council, IPEF partners are developing sector-specific action plans for critical sectors and key goods to enhance the resilience of IPEF supply chains.
The IPEF Supply Chain Council will help address concentrations in critical supply chains, working with industry to accelerate diversification.
Many of Australia's most concentrated supply chains – for example, solar PV, semiconductors, pharmaceuticals – also present significant challenges for other IPEF countries.
By working together, IPEF countries can be more effective in the way we collectively tackle these challenges, drawing on each other's strengths.
Through the IPEF Supply Chain Council, we are promoting Australia's unique export capabilities in areas such as critical minerals and clean energy technologies.
The IPEF Supply Chain Council's first year workplan was agreed in September 2024. It includes two subcommittees (on Logistics and Movement of Goods, and Data and Analytics) and three Action Plan Teams (on semiconductors, chemicals, and critical minerals with a focus on batteries. Australia will lead the Action Plan Team on critical minerals with a focus on batteries.
IPEF Supply Chain Crisis Response Network
The IPEF Crisis Response Network provides an emergency communications channel for IPEF partners during supply chain disruptions.
IPEF countries will be able to seek support, share information and collaborate during a crisis.
The Crisis Response Network helps IPEF countries collectively deal with supply chain problems in a more systematic way:
- it provides an enhanced, streamlined capability to coordinate and respond quickly to supply chain disruptions
- it will, for example, help address the kind of fast-moving challenge Australia experienced with the AdBlue diesel fuel crisis, in which cooperation with regional partners was key to averting disaster.
The IPEF Labor Rights Advisory Board
The IPEF Labor Rights Advisory Board will be a new body of government, worker and employer representatives, to support labour rights in IPEF supply chains.