On Monday 09 September 2024, the United Kingdom, United States and Australia signed a Memorandum of Understanding (MoU) establishing a new trilateral collaboration that will strengthen strategic cooperation and address risks to critical supply chains.
Referred to as the supply chain resilience pact, the deal will encourage data sharing and joint action to build resilience amidst the growing threats to essential supply lines.
The COVID-19 pandemic, not to mention a string of other major disruptions seen in recent years, have exposed the sheer fragility of global supply chains.
Organisations around the world face a tough task to ensure risk management strategies are up to scratch and crucial operations can withstand interruptions – whether anticipated or unforeseen.
The MoU formally establishes the Australia-United Kingdom-United States Supply Chain Resilience Cooperation Group. This new body will focus on improving resilience in key supply chains through enhanced data sharing and coordinated action. The group aims to address vulnerabilities and mitigate potential disruptions that could impact these critical networks.
Supply chain resilience has been a key concern for all three nations in recent years. In May 2023, A-UKFTA, the free trade agreement between the Australia and the UK came into force which contains supply chain resilience as an area of cooperation. Similarly, Supply Chains is one of the four pillars of the Indo-Pacific Economic Framework (IPEF) regional agreement that incorporates Australia and the US, amongst others.
In more general terms, the agreement is expected to have wider application and provide support to the participants in protecting their critical trade supply chains, whilst facilitating the flow of goods during times of instability and building on the learnings from the COVID-19 pandemic experiences.
A central component of the agreement is the development of an early warning pilot program specifically targeting the telecommunications supply chain. Given the sector’s crucial role in global connectivity and digital infrastructure, this pilot will aim to identify and monitor risks, evaluate the sector’s vulnerabilities, and develop effective response strategies. The goal is to improve all three countries’ capacity to anticipate and manage disruptions before they escalate.
The MoU signifies a deepening of the longstanding relationship between the three countries, reflecting their shared commitment to strengthening economic security and resilience in an increasingly complex global environment.
Strengthening critical supply chains is vital for ensuring the stability and resilience needed to meet the Australia’s growth targets. This agreement signifies a deepening of the important and historic relationship between the UK, US, and Australia and reinforces our mutual commitment to tackling supply chains challenges.
Also see this recent related article: Will the New UK Government Affect Our FTA?
For more information about international shipping and trade – whether with the UK, USA or any other point around the globe – contact us here at Colless Young. As licensed Customs Brokers and Freight Forwarders we offer correct, professional advice on all your transportation requirements. We are based in Brisbane and provide a complete range of logistics services, both airfreight and sea cargo, through all Australian ports and airports.
