Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement
Details of New Zealand’s membership of the Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement.
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New Zealand and 13 other countries in the Indo-Pacific region have developed an international framework known as the Indo-Pacific Economic Framework for Prosperity (IPEF).
Countries which have joined the Agreement, alongside New Zealand, represent 40% of global Gross Domestic Product (GDP) and take half of New Zealand’s exports.
Indo Pacific Economic Framework (IPEF) Supply Chain Agreement
Pillar II of the IPEF is the IPEF Supply Chain Agreement (the Agreement) which aims to enhance resilience, transparency, and cooperation in critical supply chains.
On 24 February 2024 the Agreement entered into force after being ratified by 5 of the IPEF countries. New Zealand ratified the IPEF Supply Chain Agreement on 12 September 2024.
Over the last few years geopolitical, pandemic and climate related disruptions have:
- reduced supply chain resilience, and
- affected the supply of goods and services to business and consumers.
Supply chains are important in all areas of the economy. Supply chains are usually managed effectively by firms themselves but agreements like the IPEF Supply Chain Agreement provide a way for countries to share information, identify stress points, and, where required, come up with practical solutions to supply chain disruptions.
Countries in the Agreement are required to notify other member countries of the 'critical sectors' and 'key goods' in their supply chains. The Agreement defines critical sectors and key goods as those that are critical to, or have a significant effect on, a country's national security, public health and safety, or prevention of significant or widespread economic disruptions.
As a small, advanced economy, New Zealand depends on imports of inputs into critical sectors, and continued and diversified access to key goods.
Go to New Zealand’s Ministry of Foreign Affairs and Trade (MFAT) website for more IPEF information.
IPEF Supply Chain Agreement text [PDF 318KB](external link) – MFAT
Indo-Pacific Economic Framework for Prosperity(external link) – MFAT
Supply Chain Council
Through the IPEF Supply Chain Council (the Council), IPEF partners will target critical sectors and key goods to align policies and build initiatives to proactively build resilient, competitive, and diversified supply chains.
The Council is made up of relevant senior officials from the central level of government of each country in the Agreement.
The Council meets periodically to review the reports from Action Plans, Subcommittees and Member countries, and explore opportunities to develop best practice in relation to policies, measures or actions impacting trade in critical sectors and key goods.
Crisis Response Network
The Crisis Response Network (CRN) is composed of relevant senior officials from the central level of government of each member country.
It is designed as an emergency communications channel to rapidly share relevant information and facilitate cooperation in response to supply chain disruptions.
Labour Rights Advisory Board
This board is designed to help promote labour rights in IPEF countries’ supply chains.
Action Plans and Subcommittees
Action Plans, established under the Supply Chain Council, focus on a critical sector or key good notified by at least 3 IPEF member countries.
Subcommittees are similar to Action Plans but cover broader areas related to building up the resilience of IPEF countries’ supply chains in critical sectors and key goods.
New Zealand has joined a number of Action Plans and Subcommittees. As part of our involvement, the Ministry of Business, Innovation and Employment (MBIE) is working with government agencies in New Zealand and engaging with industry and other stakeholders.
Analysis of critical sectors and key goods in New Zealand
New Zealand was required under the IPEF Supply Chain Agreement to notify a list of critical sectors and key goods to other IPEF Parties. MBIE has worked on this requirement by engaging with industry stakeholders, government agencies and international partners, to confirm and refine its initial quantitative analysis.
MBIE’s analysis of trade and industry sector data
MBIE’s analysis followed best practice developed by other IPEF member countries. MBIE analysed publicly available trade and industry sector data to identify sectors and goods that in their absence could:
- have a significant effect on New Zealand’s national security,
- public health and safety, or
- cause widespread economic disruption.
The key goods identified in the analysis represent the greatest risk of disruption to New Zealand due to:
- production being concentrated in one or two countries, or
- where New Zealand imports the goods from a limited number of countries.
They do not include consumer goods such as mobile phones or laptops, or final food products such as rice or pasta.
Sector level data assessed whether a sector is vulnerable to supply chain disruption, measured by
- its general reliance on imports and specific products, and
- the most vulnerable sectors that make significant contributions to downstream industries across New Zealand’s economy.
Under the Supply Chain Agreement, a country in the Agreement can amend its list of critical sectors and key goods at any time.
List of critical sectors and key goods
The critical sectors and key goods notified by New Zealand to IPEF member countries are:
Critical sectors
- Construction services
- Medical and other health care services
- Heavy and civil engineering construction
- Pastoral farming
- Hospitals
- Surface transport
Key goods
- Bulk animal feed
- Fertiliser
- Pharmaceuticals
- Cereals for food production
- Food packaging
- Steel alloy bars and rods
- Critical chemicals
- Machinery for food production
- Sugars for food production
- Critical minerals
- Medical devices
- Engine and liquid fuels
- Oils for food production
IPEF Supply Chain Agreement information and resources
New Zealand
IPEF overview(external link) – New Zealand Ministry of Foreign Affairs and Trade
What is a supply chain and how do I manage it in my business?(external link) – New Zealand Trade and Enterprise (NZTE)
Improving economic resilience - Productivity Commission inquiry material 2022 - 2024(external link) – The Treasury New Zealand
Australia
Office of Supply Chain Resilience(external link) – Department of Industry Science and Resources
USA
Pillar II – Supply Chains(external link) – U.S. Department of Commerce
U.S. Identifies Critical Sectors and Key Goods for Potential Cooperation under the IPEF Supply Chain Agreement(external link) – U.S. Department of Commerce
OECD (Organisation for Economic Co-operation and Development)
Resilient supply chains(external link) – OECD
Data
New Zealand International Trade dashboard(external link) – Stats NZ
McKinsey Global Trade Explorer(external link) – McKinsey Global Insitute
Contact us
Email us about the IPEF Supply Chain Agreement, or critical supply chains in New Zealand.