Feb. 27, 2021–Since the beginning of the COVID-19 pandemic, businesses and consumers around the world have faced shortages of food, medical supplies and prescriptions, industrial parts, and consumer staples.
Supply chain interruptions, manufacturing delays and export restrictions have all impacted the way the world trades its goods.
Policymakers are taking note, and the United States is no exception.
Executive Order on Supply Chains
This week, President Joe Biden ordered an administration-wide review of supplies for multiple industries, including semiconductors, high-capacity batteries, critical minerals and materials, such as rare earth elements, and pharmaceuticals.
“We shouldn’t have to rely on a foreign country — especially one that doesn’t share our interests or our values — in order to protect and provide our people during a national emergency,” Biden said.
The executive order calls on the departments of Commerce, Defense, Energy, and Health and Human Services to publish reports within 100 days outlining risks of shortages in these industries.
“We need to make sure these supply chains are secure and reliable,” Biden said. He cited “strong bipartisan support” for studying the four areas “because they’re essential to protecting and strengthening American competitiveness.”
Furthermore, the order calls for a broader, one-year review of supply chains for manufacturing, public health, agriculture, transportation, information and communications technology and digital goods and services.
Implications for Production and Trade
The action could have a significant impact on internationals business and trade. It follows an executive order directing the U.S. government to purchase goods, materials and services from sources that “help American businesses compete in strategic industries and help America’s workers thrive.”
Biden suggested it could lead to increased domestic production as well as strengthening strategic trade among allies.
“In some cases, building resilience will mean increasing our production of certain types of elements here at home,” Biden said. “In others, it’ll mean working more closely with our trusted friends and partners, nations that share our values, so that our supply chains can’t be used against us as leverage.”
For more information, see the Executive Order on America’s Supply Chains. Furthermore, see “Executive Order on Ensuring the Future Is Made in All of America by All of America’s Workers.”
