A year ago, US President Joseph Biden launched the Indo-Pacific Economic Framework for Prosperity, a framework agreement between 14 governments that is intended, among other things, to help build secure global semiconductor supply chains. This week, the participants in the initiative were able to report initial successes in the negotiation process.
Representatives from 14 countries, mostly from the Indo-Pacific region, met in Detroit this week to discuss topical issues in the field of foreign trade, and the relevant ministers were dispatched to the meeting. Gina Raimondo, Secretary of the US Department of Commerce, as host, notes Reuterswas satisfied with the first results of the negotiations on the creation of an early warning system for interruptions in the supply of semiconductor components.
Under the terms of the agreement, the countries involved in the industry’s crisis management infrastructure will be given information-sharing channels that will speed up the resolution of issues in a crisis similar to that which arose against a pandemic backdrop. “I would like such a system to work even during a pandemic COVID would allow us to preserve American jobs and keep supply chains running.” said Gina Raimondo. It is known that the pandemic has paralyzed the work of many companies in the semiconductor industry and logistics, which in turn has negatively affected the activities of most American automakers. They had to stop the conveyors for a long time and cut the workforce.
It is noteworthy that the initiative to create an early warning system for crisis phenomena in the semiconductor industry also includes the creation of representative bodies that will monitor compliance with workers’ rights and improvement of their working conditions. The Indo-Pacific framework also includes cooperation between participating countries on trade, climate change and labor conditions, but negotiations on these issues will only bear fruit in late autumn this year.