Trump signs an agreement with Malaysia regarding the country's rare minerals. “Crucial to securing our supply chains”
Donald Trump on arrival in Malaysia. Photo: THE WHITE HOUSE / UPI / Profimedia
American President Donald Trump signed an agreement with Malaysia on Sunday in Kuala Lumpur to secure the United States' access to the rare minerals of this Asian country, in the context in which China recently announced restrictions on the export of these essential resources in the modern economy, reports AFP.
“Malaysia is committed to ensuring that no restrictions are imposed on the sale of rare metals to US companies,” the White House announced in a joint statement with the government in Kuala Lumpur.
The trade agreement was signed by Donald Trump and Malaysian Prime Minister Anwar Ibrahim in the Malaysian capital, where the US president is present on Sunday to attend the ASEAN (Association of Southeast Asian Nations) summit, ahead of a meeting with Chinese President Xi Jinping on Thursday.
Kuala Lumpur thus promises, through this agreement, to “refrain from prohibiting or imposing quotas on exports of critical minerals to the United States”, while Washington has accepted the formalization of a 19% customs duty on Malaysian products.
Malaysia is also committed to accelerating the development of its critical minerals sector in partnership with US companies, particularly by extending mining licenses to increase production capacity.
Malaysia declared in 2023 that it has around 16.2 million tons of untapped reserves of rare earths.
Then, a national moratorium on exports of these resources entered into force on January 1, 2024, to encourage their transformation on the domestic market.
“We live in a world where the possession of these critical minerals is essential to our production, technology and economy,” US Trade Representative Jamieson Greer said at the signing of the agreement.
“It is crucial that we cooperate as willing partners to guarantee the fluidity of our supply chains,” he stressed.
On Sunday, Trump also announced that he had signed a non-binding memorandum of understanding with Thailand that includes measures to increase cooperation in trade in rare minerals.
