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FACT SHEET: U.S. Convenes Supply Chain Ministerial Forum

Jul 20, 2022

FACT SHEET: U.S. Convenes Supply Chain Ministerial Forum
Wed, 07/20/2022 – 12:57

ICT Supply Chain


Wednesday, July 20, 2022

Office of Public Affairs

The Biden Administration is working with our partners and diverse stakeholders domestically and overseas to address supply chain disruptions.

The Supply Chain Ministerial Forum, co-hosted by Secretary of State Blinken and Secretary of Commerce Raimondo, will be held virtually on July 19-20, 2022.  Stakeholders will attend breakout sessions on July 19.  A plenary session will be held on July 20.

The United States and several of our partners are gathering as part of our ongoing work to reduce and end near-term supply chain disruptions and to cooperate to build long-term supply chain resiliency.  As this work continues, President Biden, Secretary Blinken, and Secretary Raimondo have prioritized including historically underrepresented voices in the efforts to ensure strong supply chains.  As the United States and our partners chart a path forward, women and minority business owners, labor leaders, civil society, and local leaders will be at the center of the solutions.

The Supply Chain Ministerial Forum is the most recent example of the Biden Administration’s efforts to minimize supply chain disruptions and bring down costs for American families through diplomacy and leadership.  Some additional, illustrative examples, are highlighted below:

The White House and the U.S. Departments of Commerce and State established the Microelectronics Early Alert System to collect information and mitigate disruptions to the supply of chips and components around the world related to COVID-19.  For example, when COVID-19 surges in Malaysia and Vietnam threatened to shut down the production of microelectronics and semiconductors last year, the Departments of Commerce and State worked with the private sector and foreign partners through the Microelectronics Early Alert System to limit disruptions to the supply of these components.  As a result, U.S. auto vehicle assembly plants that rely on these inputs were able to remain operational, and U.S. workers were able to remain on the job.
The Commerce and State Departments have worked with foreign companies to attract direct investment into critical supply chains in the United States.  During this Administration, companies have announced more than $35 billion to bolster domestic production in industries such as semiconductors and electric vehicle batteries.  These investments will create meaningful, sustainable jobs and increase the resilience and security of domestic supply chains for these products. For example, the Department of Commerce leads SelectUSA, a program that increases business investment in the United States. In the past year alone, announced foreign direct investment from SelectUSA’s semiconductor clients totals $12.5 billion and will support over 1,800 U.S. jobs. This is an illustration of potential employment and productivity that investment in critical supply chains can bring to the United States.
The Minerals Security Partnership (MSP), led by the State Department, brings key economies together to help build robust, reliable critical mineral supply chains.  Critical minerals are key inputs in clean energy technologies like batteries, electric vehicles, wind turbines and solar panels as well as a range of other commercial applications.  The MSP will help ensure electric vehicle battery plants, automakers, and other U.S. manufacturers have the inputs they need to keep production lines open and American workers on the job.  The MSP will also support the expansion of U.S.-based critical mineral supply chains, including processing and recycling.
The Department of Commerce was a key contributor to the 100-day reports on Building Resilient Supply Chains on Critical Minerals and Large Capacity Batteries and continues to work with U.S. industry stakeholders to solicit views on international trade policy matters. Commerce has launched a new Industry Trade Advisory Committee on Critical Minerals and Non-Ferrous Metals and leads numerous industry engagement events with allies through Working Groups with Australia, Brazil, Canada, the European Union, and Japan and participates in the United Nations International Metals Study Groups. Commerce staff also contribute to important interagency initiatives including: the Federal Consortium for Advanced Batteries and its subcommittees on mining, processing, recycling and global market partnership development; the National Science and Technology Council Critical Minerals Subcommittee; and the International Trade Administration’s SelectUSA program to promote investment in U.S. critical mineral projects in accordance with Environmental, Social, and Governance (ESG) principles.
The Department of Commerce leads the Supply Chain Disruption Taskforce efforts related to semiconductors and homebuilding materials, which improves transparency, trust, and communication across critical supply chains.  In a similar effort, the Commerce Department reconstituted the Advisory Committee on Supply Chain Competitiveness (ACSCC) to draw on vital multistakeholder and industry inputs and provide actionable recommendations to address supply chain issues across manufacturing, workforce, and freight movement areas.
The State Department, in coordination with the Food and Drug Administration (FDA) Health and Human Services and Department of Commerce, has been working with U.S. embassy teams to identify high-quality sources of formula to meet the urgent supply chain gap for American babies.  As a result, within days of FDA offering more flexible rules, formula from Bubs Australia was approved and flown into the United States from Australia.  To date, Bubs has provided almost 800,000 lbs. of formula, equal to more than 12 million bottles, to the United States.  Likewise, new sources of formula have been approved and imported from England, Germany, Netherlands, Switzerland, Singapore, New Zealand, and Mexico.  These imports, collectively, are projected to bring in an additional 35 million lbs. of formula, equal to more than 524 million bottles, through November.  To date, the United States has imported nearly 4 million lbs. of formula, equivalent to almost 56 million bottles of formula, to meet supply gaps in the United States.
The Department of Commerce works to ensure resilient, diverse, and secure supply chains with partners in the private sector, including through the Manufacturing Extension Partnership (MEP), which includes centers in all 50 states and Puerto Rico that work with manufacturers to help them develop new products and customers, expand and diversify markets, adopt new technology, and enhance value within supply chains.  Commerce is committed to doubling the number of businesses receiving Department of Commerce export support services, prioritizing those from historically underserved communities.  As part of the effort, the MEP and U.S. Export Assistance Centers are collaborating to reach more small and medium-sized manufacturers.
The State Department, in coordination with the Department of Transportation and the Federal Aviation Administration, ensured our airlines – particularly our all-cargo carriers – had the flexibility they need to safely and securely move critical medicine, supplies, and consumer goods around the world to where they are most needed.  This has been particularly important during the dual crises of the COVID-19 pandemic and Russia’s unprovoked and unjustifiable war against Ukraine, which has seriously disrupted global supply chains, especially those linked to the Black Sea.
The State Department played critical roles in the whole-of-government effort to provide COVID-19 test kits during the Omicron variant surge.  These roles ranged from encouraging foreign investment into the United States to produce test kits here to coordinating international cargo shipments.  As a result of those efforts, 80 million at-home and point-of-care COVID-19 tests kits have arrived in the United States from factories in the Republic of Korea, and a team of Australian engineers has traveled to the United States to establish a COVID-19 test kit production facility.

For further information, please visit State Department website.

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Read the full report from the U.S. Department of Commerce: Read More