Initiative USA regarding critical minerals was announced during a meeting of foreign ministers of several dozen countries, including Poland, convened in Washington. As Vice President Vance explained, the purpose of establishing a trading bloc is to guarantee a minimum price for critical minerals. US Secretary of State Marco Rubio said that “many countries” had agreed to sign the agreement.
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As the vice president noted, in the past, many projects involving critical minerals were abandoned due to the flood of low-priced raw materials. The new initiative is intended to give companies greater certainty that their investments in resource extraction will be profitable.
Although Vance did not mention China by name, the move is aimed at countering Beijing's domination of the market for extracting and processing the minerals on which the global economy is based.
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USA: We will create a trade bloc between allies
“We want to create a trade bloc between allies and partners that will guarantee Americans access to American industrial power and at the same time increase production throughout the zone,” Vance said.
“The Trump administration is proposing a specific mechanism to return the global market for critical minerals to a healthier and more competitive state — a preferential trade zone for critical minerals, protected from external disruptions through enforceable price floors,” he added.
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The US invites allies to the trade bloc: tariffs and minimum prices
The Vice-President emphasized that the mechanism was to be maintained through customs duties. The agreement proposed by the US is a development of previous initiatives, but it is the first open proposal to guarantee minimum prices for raw materials.
This includes: reaction to the announcement by China last year controls on the export of a number of rare earth metals and the announcement of the suspension of their export for foreign arms companies. Beijing's announcement – suspended after the trade agreement with the US – caused great uproar and concerns about China using its dominant position for geopolitical purposes.
Critical minerals. “Many countries agreed to sign the agreement”
US Secretary of State Marco Rubio said during a press conference at the forum in Washington that the meeting was attended by 55 countries responsible for 2/3 of global GDP, of which “many” agreed to sign the agreement.
Donald Trump signed an executive order on Monday creation of a strategic reserve of critical mineralsProject Vault. The United States is to invest $10 billion in it.
