TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Japan, Australia, India launch network to strengthen supply chains

The launch came as the three countries have been working together to address vulnerabilities in the global manufacturing system, which continues to be hit by virus-induced trade disruptions.

Kyodo News
Tokyo, Japan
Wed, April 28, 2021

Share This Article

Change Size

Japan, Australia, India launch network to strengthen supply chains Newly manufactured cars of automobile maker Subaru wait to be exported at a port in Yokohama, Japan, in this file photo. Chances that Japan will slide into recession this coming fiscal year have grown over the past three months, a Reuters poll of economists found, pressured by the global economic slowdown and United States-China trade friction. (Reuters/Toru Hanai)

J

apan, Australia and India launched on Tuesday a new framework to mutually strengthen their supply chains of cars, medical equipment and other products amid the coronavirus pandemic, in a veiled attempt at relying less on key regional trade partner China.

The launch came as the three countries have been working together to address vulnerabilities in the global manufacturing system, which continues to be hit by virus-induced trade disruptions.

In a videoconference, Japan's Economy, Trade and Industry Minister Hiroshi Kajiyama and his counterparts Dan Tehan of Australia and Piyush Goyal of India said the framework called the Supply Chain Resilience Initiative will eventually attain a "strong, sustainable, balanced and inclusive growth in the region.

The initiative also aims to achieve sustainable growth in the Indo-Pacific region by drawing in India after the South Asian country's withdrawal from the Regional Comprehensive Economic Partnership -- a multilateral trade pact involving 15 Asia-Pacific countries, including China and South Korea.

In a joint statement issued afterward, the ministers said the initiative will promote the enhanced utilization of digital technology and diversification of trade and investment opportunities.

They also recognized that the pandemic had revealed supply chain vulnerabilities and stressed the need for risk management and business continuity plans to avoid such disruptions.

The pandemic has affected Japanese businesses with shortages of auto and electronic parts from China while also disrupting the stable supply of medical equipment.

The statement said the initiative's initial projects include sharing of best practices on supply chain resilience and holding investing promotion and buyer-seller matching events to help businesses to diversify their supply chains.

The three ministers also agreed to hold a meeting related to the framework's implementation at least once a year, according to Japan's economy ministry.

The countries agreed in their previous videoconference in September to enhance regional supply chains and draw up measures toward such ends.

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.