New Delhi - The Commerce and Industry Ministry is likely to seek Cabinet approval to sign and ratify the Supply Chains Agreement under the Indo-Pacific Economic Framework (IPEF), the negotiations for which were concluded in May.

The ministry has floated a draft Cabinet note for Inter-Ministerial consultations for the agreement, which seeks to establish an IPEF Labour Rights Advisory Board, address facility-specific labour rights inconsistencies, identify critical sectors and key goods, and strengthen supply chains. The pact has a provision for review after five years and for withdrawal with a lock-in period of three years from the entry into force.

“Cabinet approval is required since it is an international agreement. It will be signed after legal scrubbing and domestic processes are done by the IPEF members,” said an official.

IPEF has 14 countries, including, India, Australia, the US, Japan, Fiji, Korea, New Zealand, Singapore and Thailand.

The supply chain agreement also seeks to reduce the dependence on China. Officials said that the pact aims to minimise unnecessary restrictions, expedite regulatory clearance at ports, and increase availability of investment in warehousing.