Secretary Raimondo, IPEF Ministers Welcome Upcoming Entry into Force of the Clean Economy Agreement, Fair Economy Agreement, and Agreement on the Indo-Pacific Economic Framework for Prosperity (IPEF) and Commit to Continued Progress at Virtual Ministerial

WASHINGTON – Today, U.S. Secretary of Commerce Gina Raimondo joined the Ministers from the 13 other Indo-Pacific Economic Framework for Prosperity (IPEF) partners, in their third Ministerial meeting this year on IPEF Pillars II, III, and IV.

During the virtual meeting, Secretary Raimondo reflected on the significant progress made by the IPEF partners since the Ministers last met in Singapore in June 2024, highlighting the ground-breaking collaboration among, and concrete steps taken by, the partners to build more resilient supply chains, facilitate the transition to clean economies, and level the playing field for businesses. In particular, the Secretary welcomed the upcoming entry into force of the Clean Economy Agreement, Fair Economy Agreement, and Agreement on IPEF on October 11, 2024, October 12, 2024, and October 11, 2024, respectively, and emphasized the significant opportunities to further deepen economic cooperation and continue to deliver concrete benefits under the IPEF agreements going forward.

The IPEF Ministers discussed their vision for ongoing cooperation under the IPEF agreements, outlined actionable next steps in the months ahead, including building on the positive progress made by the IPEF Agreement Relating to Supply Chain Resilience’s (Supply Chain Agreement) three bodies, and provided direction to the IPEF senior officials for their future work under the IPEF agreements. They agreed to continue to monitor the progress made to further operationalize the Supply Chain Agreement, Clean Economy Agreement, Fair Economy Agreement, and Agreement on IPEF, and look forward to the first meetings of the ministerial-level IPEF Council and IPEF Joint Commission established under the Agreement on IPEF.

“The speed at which the IPEF partners have concluded these high-standard economic cooperation agreements focused on key issues is a testament to the IPEF partners’ commitment to making our economies the best places to do business in the region,” said Secretary Raimondo. “With today’s announcement of the upcoming entry into force for these additional IPEF agreements, partners are now intensely focused on using these three agreements, as well as the Supply Chain Agreement, to deepen our economic cooperation so that we can continue to deliver the tangible benefits to our workers, businesses, and economies envisioned under IPEF.”

The IPEF Clean Economy Agreement, IPEF Fair Economy Agreement, and Agreement on IPEF Enter into Force in Mid-October

Following the signing ceremony held during the IPEF Ministerial meeting in Singapore on June 6, the IPEF partners have been advancing the Clean Economy Agreement, Fair Economy Agreement, and Agreement on IPEF through their respective domestic processes. During today’s Ministerial meeting, the IPEF partners welcomed the upcoming entry into force of the three agreements in mid-October, with Fiji, Japan, Malaysia, New Zealand, Singapore, and the United States having completed their domestic processes for the Clean Economy Agreement; Fiji, Malaysia, New Zealand, Singapore, Thailand, and the United States having completed their domestic processes for the Fair Economy Agreement; and Fiji, Japan, Malaysia, New Zealand, Singapore, Thailand, and the United States having completed their domestic processes for the Agreement on IPEF. With the requisite threshold reached for each of the three agreements, the Clean Economy Agreement and Agreement on IPEF will enter into force on October 11, 2024, and the Fair Economy Agreement will enter into force on October 12, 2024.

This progress, which comes just ten months after the announcement of the substantial conclusion of the negotiations of these three agreements, marks another major milestone, completed in record time. The IPEF partners also look forward to the other partners quickly completing their domestic processes.

The IPEF Supply Chain Agreement

The IPEF partners discussed the strong progress made in operationalizing the Supply Chain Agreement, deepening cooperation to build more competitive and resilient supply chains, better prepare for, prevent, and respond to supply chain disruptions when they happen, and ensure that regional supply chains raise up workers and respect labor rights. In particular, the IPEF partners welcomed the two additional Parties – Australia and New Zealand – that have completed their domestic approval processes and deposited their respective instruments of ratification, acceptance, or approval. In total, 10 IPEF partners have now completed their domestic processes.

Additionally, the IPEF partners highlighted the meaningful collaboration taking place under the Supply Chain Agreement. This includes:

The three supply chain bodies – the Supply Chain Council (Council), the Crisis Response Network (Network), and the Labor Rights Advisory Board (LRAB) – met virtually in July to elect leadership. Specifically, the United States will serve as Chair and India as Vice Chair of the Council; Korea will serve as Chair and Japan as Vice Chair of the Network; and the United States will serve as Chair and Fiji as Vice Chair of the LRAB.
The IPEF partners joined the Commerce Department- and Council on Foreign Relations-hosted Supply Chain Summit in Washington, D.C., which brought together experts from government, industry, and academia to discuss supply chain issues, and included a panel with representatives from India, Malaysia, New Zealand, and Singapore exploring the opportunities under the IPEF Supply Chain Agreement.
The IPEF Supply Chain Council held its first in-person meeting, where the IPEF partners agreed to an initial workplan, established subcommittees focused on data analytics and logistics, and established Action Plan teams on semiconductors, critical minerals with a focus on batteries, and chemicals, with plans for another on healthcare products.
The IPEF Crisis Response Network held its first in-person meeting and conducted a crisis simulation tabletop exercise to help prepare the IPEF partners to work together to respond to possible future disruptions and mitigate the impacts on their economies.
The United States convened various meetings with government, labor union, and employer representatives in Bangkok, Thailand, to discuss the labor provisions in the Supply Chain Agreement, Clean Economy Agreement, and Fair Economy Agreement. Additionally, the United States launched the IPEF Labor Network, which will provide a platform for labor unions across the region to collaborate and engage with IPEF partner governments.
Building on this early progress, the IPEF Ministers committed to continuing to further collaborate through the three bodies to strengthen IPEF supply chains.

The IPEF Clean Economy Agreement

During the virtual Ministerial, the IPEF partners commended the progress made on the Clean Economy Agreement since the successful Ministerial meeting and inaugural Clean Economy Investor Forum in June.

In particular, the IPEF partners welcomed the first project to receive support through the IPEF Catalytic Capital Fund – specifically, funding has been committed to support the issuance of a $48 million green bond that will mobilize private investment into improving the water infrastructure in Vietnam and support improved quality water access to households and businesses in Vietnam. The IPEF partners look forward to the Fund continuing to support additional projects consistent with the goals and objectives of the Clean Economy Agreement.

The Secretary also highlighted the announcement of the Coalition for Emerging Market Infrastructure Investment, a private sector endeavor established during the Investor Forum and consisting of global private sector investors and philanthropic organizations, to launch a program for country investment platforms that will prioritize the identification, creation, and facilitation of investments consistent with the goals of the Clean Economy Agreement in the IPEF partner economies.

In addition, the IPEF partners welcomed the progress made on the eight Cooperative Work Programs (CWPs), which serve as one of the primary mechanisms under the Clean Economy Agreement for facilitating cooperation among participating IPEF partners on priority topics. Each CWP, as developed by the proposing IPEF partner or partners and in consultation with the other IPEF partners, has different objectives and workstreams to carry forward the collaborative work, oftentimes beginning with an information exchange to facilitate a common understanding of the partners’ positions and including collaborating with the private sector. The IPEF partners welcomed the meaningful steps that have been taken over the last several months on each CWP, which will proceed on its own timeline, including:

On the hydrogen supply chain CWP, the participating IPEF partners’ technical experts completed a series of informational exchanges showcasing each of the partners’ respective plans for hydrogen. Based on how each government intends to incorporate hydrogen into its respective energy plan, a Department of Energy national laboratory is conducting a supply and demand mapping exercise of the participating IPEF countries.
On the sustainable aviation fuel (SAF) CWP, the participating IPEF partners will convene a public-private task force comprising IPEF partners and relevant companies from across the SAF ecosystem. The task force aims to explore the availability of SAF feedstocks in the region, facilitate the cross-border movement of SAF and SAF feedstocks, and enhance the deployment of SAF in the region.
On the clean electricity CWP, the participating IPEF partners completed a detailed workplan that sets out the specific activities to be undertaken. As a first step, Japan and Korea announced they would co-organize a public-private seminar in the coming months, aimed at fostering a better understanding of best practices in the private sector and policy insights related to the efficient procurement of clean electricity, and exploration of collaboration opportunities between the public and private sectors through case studies, as part of the collaboration between the CWP and Korea’s Carbon Free Energy Initiative.
On the small modular reactors (SMRs) CWP, the participating IPEF partners have established an SMR network of the relevant government representatives who lead the government’s work on nuclear energy. Additionally, the participating IPEF partners are undertaking an initial stock-taking of their various stages of preparation for the deployment of SMR technology in their respective countries. As a next step, the Department of Energy’s Idaho National Laboratory will conduct an exercise on areas of cooperation that complement existing efforts, advance the deployment of SMRs in the region, and strengthen the region’s energy security.
The IPEF Fair Economy Agreement

The IPEF partners welcomed the next steps to implement the Agreement, including operationalizing the Technical Assistance and Capacity Building Coordination Group that will coordinate technical assistance and capacity building (TACB) under the Agreement’s Capacity Building Framework. Recognizing the critical role that TACB will play in the effective implementation of the anti-corruption and tax provisions of the Agreement, and building on the Catalogue of Technical Assistance and Capacity Building Initiatives for the IPEF Pillar IV Fair Economy Agreement, the United States announced further details on several of its TACB initiatives, including:

The Department of Commerce’s Commercial Law Development Program (CLDP) announced a State Department Bureau of International Narcotics and Law Enforcement (INL) funded IPEF Fair Economy Agreement anti-corruption program. The two-year program will offer IPEF partners TACB to help with implementation of the anti-corruption provisions of the Agreement, primarily focused on enforcement training centered on foreign bribery, corporate liability, and compliance. The Agreement’s Capacity Building Framework will serve as the primary mechanism for IPEF partners to request TACB under this program.
In August 2024, the Treasury Department’s Office of Technical Assistance (OTA) held a successful virtual workshop that served as a forum for the IPEF partners to discuss the importance of effective tax administration to support economic and development objectives. The workshop also provided an opportunity for the IPEF partners to learn about OTA’s technical assistance programs to advance the tax-related objectives of the Agreement.
In October 2024, the State Department INL, with the Malaysia Anti-Corruption Commission and the United Nations Office on Drugs and Crime, will hold an IPEF workshop focused on the implementation and enforcement of foreign bribery laws.
In October 2024, the State Department INL, with the Malaysia Anti-Corruption Commission and the United Nations Office on Drugs and Crime, will hold an IPEF workshop on preventing corruption in public procurement, including tools to improve the effectiveness of oversight mechanisms, appeal systems, and potential remedies and legal options.
By strengthening anti-corruption efforts and enhancing the efficiency of tax administration, the IPEF partners are demonstrating their commitment to increased transparency and predictability, and thereby will be better positioned to expand their trade and investment ties and ensure the benefits of trade are broadly shared throughout their economies.

Read the full report from the U.S. Department of Commerce: Read More