President Biden and the US administration has revealed how it plans to address both its global and domestic supply chain issues.
The President held a Summit on Global Supply Chain Resilience with the EU and 14 other countries on 31 October in a bid to tackle supply chain issues on a global level.
A statement issued by The White House explained Biden has seen resilient supply chains as a top priority for his administration since day one.
Biden revealed during the summit that he is taking a number of steps to build supply chain resilience both within the US and around the globe.
One of the key global measures will be to provide extra funding to Mexico and Central America that can be used on technical assistance that will alleviate supply chain disruptions and bottlenecks.
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He announced earlier last week (26 October) at the US-ASEAN (The Association of Southeast Asian Nation) Summit, the US will give millions in funding for new US-ASEAN initiatives. The funding will be used to link the ASEAN Single Window, a customs facilitation programme, with the US Single Window System (which allows customs agencies to communicate with trade participants through one platform). It is hoped both of these initiatives will improve and simplify customs and clearance procedures, reducing delays and encourage sustainable and efficient supply chains.
Biden revealed during the Global Summit the domestic steps he is taking to build supply chain resilience. They include:
- Streamlined US stockpiling efforts: Biden will issue an Executive Order to streamline US stockpiling efforts by delegating authority to the Department of Defense to make material releases from the National Defense Stockpile—allowing a speedier response to material shortfalls within the defense industrial base. This follows through on a recommendation made in Executive Order 14017 on America’s Supply Chains 100-day Report. The President will call for countries around the world to redouble their efforts to address shortfalls — especially those with national security concerns.
- The introduction of a multi-stakeholder summit: Recognising that supply chains have many stakeholders — from private companies to workers and labour organisations to indigenous communities to academic institutions—Secretary of State Antony Blinken and Secretary of Commerce Gina Raimondo will hold a multi-stakeholder summit next year along with their foreign counterparts. The summit will be a follow-on dialogue to establish next steps among these parties to build greater global supply chain resilience.
The American Apparel & Footwear Association (AAFA) urged the US Department of Transportation and the wider Biden administration last month to take immediate action to reign in the ongoing shipping crisis.