IPEF Ministers, led by Minister Gan Kim Yong, signed the groundbreaking IPEF Supply Chain Agreement and concluded Clean Economy and Fair Economy Agreements during the Ministerial Meeting in San Francisco.

Minister for Trade and Industry Gan Kim Yong, representing Singapore, played a pivotal role in the Indo-Pacific Economic Framework for Prosperity (IPEF) Ministerial Meeting held in San Francisco, California on November 13 and 14, 2023.

Minister Gan and 13 other IPEF Ministers signed the historic IPEF Supply Chain Agreement, marking the first multi-country effort to strengthen supply chain resilience and connectivity through collective action. The agreement, substantially concluded in May 2023, will now undergo domestic ratification procedures in each partner country.

During the meeting, significant progress was also made in the IPEF Clean Economy Agreement and IPEF Fair Economy Agreement negotiations. The Clean Economy Agreement focuses on regional cooperation to accelerate clean energy technology deployment, promote carbon market activities, and collaborate on Carbon Capture, Utilisation, and Storage (CCUS) value chains. Meanwhile, the Fair Economy Agreement aims to strengthen anti-corruption measures and taxation initiatives to create a fair and transparent regional business environment.

The Clean Economy Agreement includes commitments to mobilize investment and finance, highlighted by the establishment of an annual Clean Economy Investor Forum. Singapore has been invited to host the inaugural forum in the first half of 2024. The agreement also introduces a novel mechanism for IPEF partners to develop and participate in Cooperative Work Programmes (CWPs), starting with the regional Hydrogen initiative announced in May 2023.

Minister Gan expressed his optimism, stating, “Singapore joins partners in celebrating significant outcomes from the IPEF that give us a firm foundation to further deepen regional cooperation. The signing of the Supply Chain Agreement, and the substantial conclusion of the Clean Economy and Fair Economy agreements, will create opportunities for Singapore businesses and help them expand in the region and internationally.”

The Clean Economy and Fair Economy Agreements will undergo legal scrutiny before being signed and subsequently ratified. Ministers will convene annually to oversee the implementation of the IPEF.

Source – MTI