Topic
Foreign Affairs
Announcement date
17/11/2023
Link to announcement
https://www.pm.gov.au/media/landmark-indo-pacific-framework-agreements
Problem being addressed
The IPEF Supply Chain Agreement IA seeks to address two problems: the increasing frequency and severity of supply chain disruptions at the international level, and the concentration and chokepoints in critical supply chains.
Proposal
The IA considers two options: to sign the negotiated Agreement, or to not sign. The negotiated Agreement has several focuses, which include:
- developing common criteria between parties to identify "critical sectors or key goods"
- establishing committee structures to deliver Action Plans in identified critical sectors, to improve emergency communication channels in the event of supply chains disruptions, and to monitor for reports of Labour Rights inconsistencies.
The IA uses a qualitative analysis method to conclude that signing the Agreement will result in a higher net benefit than not signing, along with greater achievement of the Government's objectives.
Assessment comments
In order to achieve an outcome of exemplary, the IA would have had to further quantify the costs and benefits of the proposed options.