President Joe Biden recently signed an executive order aimed at strengthening the United States’ supply chain. The order establishes the White House Council on Supply Chain Resilience, which will coordinate and promote efforts to enhance long-term supply chain resilience and American industrial competitiveness. This move comes as President Biden and other G7 leaders emphasized the importance of supply chain resiliency and reliability.
The council, co-chaired by the assistant to the president for national security affairs and the assistant to the president for economic policy, will include over 30 members, including cabinet members and administrators from various government agencies. Its primary goal is to identify threats and weaknesses in the supply chain and work with partners to strengthen it.
President Biden emphasized the need for resilient, diverse, and secure supply chains, highlighting the potential risks posed by pandemics, cyber attacks, climate stressors, and other disruptive conditions. By strengthening supply chains, the United States can ensure economic prosperity, public health, and national security.
Building resilient supply chains will require government actions such as enhancing manufacturing capacity and encouraging innovation. It will also involve advancing the fight against climate change and enhancing national emergency preparedness. The council is tasked with recommending best practices for agency coordination, identifying the resources needed to support increased supply chain resilience, and promoting a fair and competitive marketplace that empowers workers.
Additionally, the council will consider federal incentives, domestic and international trade reforms, and education and workforce reforms. It may consult with private industry, educational institutions, labor unions, and state governments to gather input and ensure a comprehensive approach.
The executive order aligns with the G7’s commitment to resilient and reliable supply chains. The leaders emphasized the principles of transparency, diversification, security, sustainability, trustworthiness, and reliability. They called for coordinated efforts between the public and private sectors to strengthen supply chains while preserving economic dynamism and openness.
Overall, President Biden’s focus on strengthening the U.S. supply chain reflects the recognition of the importance of supply chain resilience and the potential risks associated with disruptions. By taking proactive measures, the United States can enhance its economic competitiveness, protect national security, and ensure the availability of critical goods and services in times of crisis.
