President Biden announced recently several national and international steps designed to address ongoing global supply chain problems. These measures follow others being taken at the federal and state levels in the U.S.
Sandler, Travis & Rosenberg is continuing a campaign to advocate with federal regulators and lawmakers on solutions to the supply chain crisis. For more information on this campaign and how to participate, please contact Ned Steiner at (202) 730-4970 or via email.
Biden announced Oct. 31 that the State Department will allot additional funding for technical assistance to Mexico and Central America to alleviate supply chain disruptions and bottlenecks. The U.S. also plans to send “millions in funding” for new initiatives with the Association of Southeast Asian Nations, including linking the ASEAN Single Window, a customs facilitation program, with the U.S. single window system. Biden said these two efforts will help “cut port congestion by slashing red tape and reducing processing times so that ships can get in and out of our ports faster.”
The president also said that (1) he will issue an executive order to strengthen management of U.S. defense stockpiles for minerals and materials and allow a speedier response to material shortfalls within the defense industrial base, and (2) the U.S. and others will hold a multi-stakeholder summit in 2022 on next steps for building global supply chain resilience.
Biden’s announcements followed a summit among more than a dozen economies that discussed ways to reduce current supply chain delays and build greater resilience for the future. The summit yielded a statement of principles addressing issues such as transparency, predictability, security, and sustainability. Among other things, participants said they would work together to:
- share information about potential, emerging, and systemic supply chain challenges as well as best practices to address port congestion and supply chain disruptions;
- ensure multiple reliable sources of raw materials, intermediate goods, and finished goods that are underpinned by resilient supply channels;
- promote predictability in their trading relations as they impact their supply chains;
- better understand and manage security risks to supply chains;
- expand cooperation and information sharing, and consider co-investment, for the responsible access and development of key raw materials and inputs; and
- foster and support the sustainable manufacture and trade of products necessary for the fight against climate change and other international sustainability goals.
Copyright © 2022 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.