South Korea is playing a greater role in a US trade pact in order to avoid spats with Japan that could weigh on global supply chains, Bloomberg reports. South Korea is chairing — alongside Japan — the US’ Indo-Pacific Economic Framework’s (IPEF) Crisis Response Network, which aims to mitigate supply-chain bottlenecks that occurred in the past. The IPEF commits members to reducing unnecessary restrictions that create supply-chain disruptions, and any critical supply chain adjustments would have to be made through peer reviews by all 14 IPEF nations. “This reduces the potential for trade spats between South Korea and Japan that we have seen in the past,” director Sim Jinsus said in an interview.

Background: Japan and South Korea were caught in a dispute in 2019 after South Korean semiconductor production came under pressure from Japanese export controls on chipmaking materials.

The Biden administration is supporting an early extension of the African Growth and Opportunity Act (AGOA), which provides over 30 sub-Saharan African countries national dutyfree access to US markets, Bloomberg reports. The administration is considering an agreement that runs for longer than the current 10-year one, which expires in September 2025. African trade ministers called for a 16-year extension with minimal changes to stabilize commerce and investment relations.

ICYMI- The US has removed Uganda, Gabon, the Central African Republic, and Niger from its zero-tariff trade list under its African Growth and Opportunity Act (Agoa) over human rights violations and lack of democratic progress.

Air New Zealand re-evaluates its emission reduction plans: Air New Zealand is reassessing its 2030 target due to fuel-efficient aircraft delivery delays, high prices for alternative fuel, and a lack of international and domestic regulatory support, Reuters reports, citing a statement from the carrier. This is the first major carrier to roll back its climate targets, raising concerns that delivery delays and sustainable aviation fuel (SAF) production costs could impact other airlines’ plans.

The set-back: The airline was slated to cap carbon intensity by 28.9% by 2030 compared to its 2019 levels. Air New Zealand’s order book is experiencing delivery setbacks, namely Boeing 787 Dreamliners and Airbus A320neo aircrafts, which have been felt industry-wide. “It is possible the airline may need to retain its existing fleet for longer than planned,” CEO Greg Foran said. The carrier reaffirmed its commitment to a net zero emissions by 2025 target set by the industry at large, noting it was moving towards a new near-term goal.

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