The United States is developing a plan with Mexico, the European Union and Japan to introduce minimum prices for critical minerals, the Office of the U.S. Trade Representative said Wednesday.
The Trump administration is seeking a partnership with Mexico in critical minerals as part of a review of the U.S.-Mexico-Canada Trade Agreement (USMCA), scheduled for July 1.
Trade Representative Jamieson Greer said the potential partnership would “address global market distortions that have disrupted North America’s critical mineral supply chain.”
Greer described Wednesday’s announcement with Mexico as an “action plan” to be implemented over the next 60 days.
The U.S. and Mexico will explore ways to introduce price floors on critical mineral imports and also discuss ways to introduce them in agreements with other countries, a trade representative said.
Shares of important mineral companies MP material and usa rare earths They fell more than 6% and 9%, respectively.
EU, Japan
Separately, the United States is working with the EU and Japan to build a strategic partnership on critical minerals, including price floors. The United States and the European Union are expected to sign a memorandum of understanding on critical mineral supply chain security within the next 30 days.
Guria said the cooperation with the EU and Japan “demonstrates that the world’s largest market-oriented economies are committed to developing a new paradigm for preferential trade in critical minerals.”
The United States and the 27-nation European Union will also discuss sharing information on critical mineral stocks and explore ways to cooperate on mining, refining and processing.
The action plan with Mexico aims to implement coordinated stockpiling of critical minerals and common regulations on their extraction, processing and trade. The plan also foresees coordination on investment, geological mapping and rapid response to supply chain disruptions.
The United States and Mexico will initially focus on a selected group of key minerals, with the exact elements to be determined at a later date.
policy center
The Trump administration has made critical minerals a centerpiece of its trade and industrial policy to reduce dependence on China. The Chinese government controls global supply chains and, in a trade dispute with the United States last year, sought to block exports of rare earths, some of the minerals used in everything from military munitions to consumer electronics.
The administration launched the National Critical Minerals Reserve on Monday. It also owns shares in important mineral companies, including: MP material, usa rare earths and Canada’s lithium america And trilogy metal.
Last July, the Department of Defense signed a landmark contract with MP Materials that includes a price floor and an offtake agreement, in addition to an equity position. Last week, the Commerce Department announced plans to provide financing to USA Rare Earths in exchange for an equity stake, subject to certain conditions.
