Secretary of State Jose Fernandez
As a follow-up to President Biden’s Global Supply Chain Summit in 2021, the United States Department of State and the Department of Commerce jointly hosted the Global Supply Chain Ministerial 2022 in July. The purpose of this forum was to discuss supply chain bottlenecks at the short term and building resilience in the supply chain in the long term – and small businesses were central.
Jose Fernandez, Secretary of State for Economic Growth, Energy and Environment for the State Department, led this effort, which brought together 16 foreign partners on six continents to explore solutions to supply chain challenges. As the global economy improves and the US continues to outpace other developed countries, there is a sense that the work must continue.
Prior to his current position, Undersecretary Fernandez was a partner at Gibson Dunn & Crutcher LLP in New York and was named “World’s Leading Lawyers” by Chambers Global. I recently had the opportunity to speak with Secretary of State Fernandez about the work he leads and his work supporting US companies at home and abroad. Below is our discussion.
Rhett Buttle: Tell us about your role at the State Department and how your previous experience as a lawyer and professor has prepared you?
Secretary of State Fernandez: As Secretary of State for Economic Growth, Energy and Environment, I lead a broad portfolio promoting the efforts of the State Department to develop and implement international policies related to economic growth, energy, agriculture, the ocean, the environment, and science and technology. I work on topics ranging from food security and energy security to promoting the necessary transition to clean energy and strengthening supply chains.
It is the job of a commercial lawyer to reach a deal while protecting the client’s interests. A professor should explain the subject matter in a way that inspires and motivates the students. These are useful skills for a diplomat.
Rhett Buttle: Given that there are 195 countries in the world, what are the overarching priorities of the State Department regarding the economy? What does the State Department think of the private sector, small businesses and entrepreneurship?
Secretary of State Fernandez: The State Department is working to keep the US competitive for the 21st century. We support the clean energy transition, work to end the Covid pandemic and prevent future pandemics, strengthen supply chains to make them less vulnerable to disruption, and protect against and respond to economic coercion by strategic competitors and adversaries.
The private sector is an essential partner in the State Department’s economic statesmanship. Small businesses stimulate innovation and employment, not only in our country, but all over the world. Entrepreneurship provides job growth and opportunities for people around the world. It creates positive change in societies when everyone – including women and historically disadvantaged communities – is given the opportunity to start and grow their own business.
Rhett Buttle: The Secretary of State and the Secretary of Commerce have discussed middle-class foreign policy? What does this mean?
Secretary of State Fernandez: The president has talked about growing our economy bottom-up and off-center. The Biden administration believes in inclusive economic growth — growth that leaves no one or any community behind. We pursue the same goal with our allies and partners. It means inviting not only large companies to the table, but also small companies – women and companies in minorities and indigenous peoples, together with trade unions, workers and civil society to develop policies that work for everyone. It means that when we talk about creating a level playing field for US exports, we are making it clear that we will not compete on the backs of our workers by pursuing policies that lead to a “race to the bottom” in terms of wages and working conditions. It also means investing in solutions for all communities to make our country and our economy stronger. We follow this approach with both foreign and domestic policy.
Rhett Buttle: Can you describe the State Department’s efforts to address supply chain disruption issues?
Secretary of State Fernandez: We have seen shocks and disruptions in the supply chain due to the Covid pandemic, the Russian war in Ukraine, extreme climate impacts and natural disasters. They hurt ordinary American families and increase inflationary pressures.
The State Department has been working with companies, foreign partners and US embassies to monitor supply chain disruptions. We work with the White House and other US government agencies to find solutions to get products to the American people. These products range from COVID test kits and microchips to special infant formulas. We also work long-term with allies, partners and the private sector by encouraging more diverse and resilient supply chains to reduce and prevent future supply chain disruptions by improving transparency through information sharing, diversification of advancing supply chain through investment, increasing security through collaboration and sharing best practices. We strive to ensure this sustainability by adhering to high labor and environmental standards.
The State Department now conducts ongoing supply chain and economic dialogues around the world on a bilateral, regional and global basis.
Rhett Buttle: You recently convened a ministerial supply chain forum. How was the event and which sectors did you bring together?
Secretary of State Fernandez: On July 19-20, Foreign Minister Blinken and Trade Minister Raimondo convened a global meeting with 16 foreign partners to discuss supply chain challenges. The participants included Canada, Mexico, Brazil, the European Union, Japan, South Korea, Australia, India, Indonesia and the Democratic Republic of the Congo. The US and its partners agreed to work together on crisis response, work together to reduce and end supply chain disruptions, and promote supply chain resilience. The United States and our foreign partners are also committed to involving the private sector – business, the labor market and civil society – in finding solutions to supply chain challenges.
The ministerial included breakout sessions led by academic experts from the US and foreign partners. More than 100 US and foreign private sector stakeholders participated, including associations representing large and small businesses, women and minority-owned businesses, unions and civil society organizations, and local officials. They made recommendations on crisis response, investment and enabling environments, transport and logistics, and staff development which were presented to foreign and trade ministers.
Rhett Buttle: What are the next steps coming out of this event?
Secretary of State Fernandez: Secretary Blinken invited other countries to join our global efforts to collaborate on supply chains. Costa Rica has already agreed to participate and we expect others to do so in the coming weeks and months.
We will participate in a series of global supply chain follow-up sessions with foreign partners and other departments and agencies such as the US Departments of Labor and Energy and the US International Development Finance Corporation. These sessions will allow us to deepen our foreign supply chain partnerships in critical sectors and areas.
In the coming months, we will also have opportunities to share more information and invest in supply chain diversification through regional efforts such as the US-EU Trade and Technology Council, the Indo-Pacific Economic Framework and the Americas Partnership for Economic Prosperity . I believe that our supply chain diplomacy will lead to tangible results and stronger supply chains for businesses and consumers in the future.
Rhett Buttle: Is there anything else you would like to add?
Secretary of State Fernandez: It is important to remember that supply chains are managed by the private sector. We know that governments must listen to and work with the private sector to succeed. We are in this together and will not solve these challenges alone. At the same time, supply chains are also global, so we need to work with our allies and partners to find real solutions.
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