New Delhi: Union Commerce and Industry Minister Piyush Goyal, along with 13 other Indo-Pacific Economic Framework (IPEF) Ministers, virtually attended the third IPEF Ministerial meeting. The discussions centered around key agreements under IPEF Pillars II, III, and IV, with a focus on enhancing supply chain resilience, promoting a clean economy, and strengthening the framework’s commitment to fair economic practices.
Minister Goyal, alongside other IPEF leaders, welcomed the upcoming entry into force of the Clean Economy Agreement, Fair Economy Agreement, and the Overarching Agreement on IPEF. These agreements, set to take effect in October 2024, are expected to deepen economic cooperation among IPEF nations and deliver tangible benefits through continued collaboration.
During the meeting, IPEF Ministers praised the significant progress made in operationalizing the Supply Chain Agreement, with a focus on building competitive and resilient supply chains capable of responding to disruptions. The formation of three key bodies under the Supply Chain Agreement—the Supply Chain Council, Crisis Response Network, and Labor Rights Advisory Board—has already begun shaping concrete next steps. India, notably, was elected Vice Chair of the Supply Chain Council, with the U.S. as Chair.
Minister Goyal emphasized the formation of action plans for three critical sectors—semiconductors, critical minerals (especially for batteries), and chemicals—following disruptions experienced during the COVID-19 pandemic. He highlighted the need to address global supply chain risks arising from concentrated production capacities, which can lead to price volatility and supply uncertainty.
The Clean Economy Agreement, which comes into effect on October 11, 2024, aims to accelerate efforts towards energy security, climate resilience, and a transition to low-carbon economies among IPEF nations. Key sectors targeted include clean energy, electronics, defense, telecommunications, and pharmaceuticals.
IPEF partners commended the progress made in the Cooperative Work Programs (CWPs), which promote cooperation on clean energy solutions, hydrogen technology, carbon markets, small modular reactors (SMRs), and e-waste urban mining—an initiative led by India. Minister Goyal emphasized the importance of securing critical minerals for green energy transitions and called for continued collaboration to reduce global reliance on fossil fuels.
Under the Fair Economy Agreement, IPEF partners reiterated their commitment to combating corruption and improving tax administration across the region. These efforts are crucial for fostering transparency and expanding trade and investment ties. The U.S. Department of Commerce’s Commercial Law Development Program will provide technical assistance to IPEF members on anti-corruption measures, while workshops focused on foreign bribery enforcement and public procurement oversight will be held in partnership with the UN Office on Drugs and Crime.
Minister Goyal underscored that peer learning and capacity building will be essential for achieving the objectives of the Fair Economy Agreement. He also highlighted India’s strong anti-corruption regime, which has introduced several legislative and regulatory measures to enhance transparency and tax administration under Prime Minister Narendra Modi’s leadership.
In his address, Minister Goyal emphasized that IPEF’s focus on logistics and supply chain resilience aligns with Prime Minister Modi’s Gati Shakti initiative, which seeks to improve transportation infrastructure and logistics in India through integrated, data-driven planning. He stressed the importance of workforce development, skill qualification comparability, and enhancing technological interoperability to boost supply chain resilience across the Indo-Pacific region.
IPEF partners concluded the meeting by agreeing to monitor the progress of the Supply Chain, Clean Economy, and Fair Economy agreements, alongside the IPEF Overarching Arrangement. Ministers also look forward to the first meetings of the IPEF Council and Joint Commission, which will play a critical role in guiding future cooperation.
Launched in May 2022, the Indo-Pacific Economic Framework (IPEF) comprises 14 nations—Australia, Brunei, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, Vietnam, and the United States. The framework focuses on enhancing economic engagement in four key areas: Trade (Pillar I), Supply Chain Resilience (Pillar II), Clean Economy (Pillar III), and Fair Economy (Pillar IV).