The EMA says the Indo-Pacific Economic Framework Supply Chains agreement announced today between 14 countries will guard against supply chain disruption in the future.
Chief Executive Brett O'Riley, who has provided input to the Ministry of Foreign Affairs and Trade on the agreement on behalf of its member and associated businesses, said supply chains are a core pillar of the Indo-Pacific Economic Framework (IPEF).
"I'm pleased to see this important framework completed, which will facilitate supply chain certainty and enable countries to also jointly address several sustainability issues, including labour market fairness," said O'Riley.
"Due to COVID and other global geo-political issues, including Russia's war on Ukraine, we have seen the most disrupted supply chain since the Second World War."
O'Riley continued that this had impacts internationally on shipping container availability, transport fuel costs, and stocks of key components and has driven up costs for businesses and their customers.
As a result, this has had inflationary impacts and material shortages, all contributing to increased living costs across the region and New Zealand.
IPEF provides new channels for collaboration among regional countries. Today's Supply Chain Agreement announcement highlights the intention to improve the resilience, efficiency, productivity, sustainability, transparency, diversification, security, fairness and inclusivity of the countries involved.
O'Riley stated that seeing India and Fiji represented in the 14 IPEF countries was great. India was a key focus for closer trade relations with New Zealand, in conjunction with the strengthened involvement with the Pacific, of which Fiji is an important partner.
In the future, it would be beneficial for this participation to be extended to other South Pacific Island nations like Tonga and Samoa.
