The European Union and the United States signed an agreement on Friday to coordinate the supply of critical minerals necessary for key industries, including defense.
Secretary of State Mike Rubio and European Commissioner for Trade Maros Sefcovic signed a memorandum of understanding on a strategic partnership for critical minerals at the State Department in Washington. Rubio stated that the excessive concentration of these resources posed “an unacceptable risk” due to domination by a few key players.
Sefcovic emphasized the importance of the agreement, stating that working together strategically would lead to faster achievement of goals and strengthen their position in this crucial area.
Counteracting China’s dominance
This agreement marks a rare alignment between the Trump administration and the EU, which have often been at odds, especially with regards to right-wing populist movements in Europe. Amidst tensions, Beijing has restricted exports of critical minerals needed for semiconductor production, electric vehicle batteries, and armament systems.
The pact aims to coordinate subsidies, establish common standards to facilitate trade in the Western world, and jointly invest in research. The Trump administration had previously called for the creation of a preferential trading area among allies for critical minerals.
Dealing with American steel tariffs
The EU is also seeking progress to mitigate the effects of American steel tariffs, with Sefcovic stating that talks were moving in a positive direction. They aim to align their approaches with the US regarding steel trade with third countries.
While significant issues remain in transatlantic trade relations, both the US and the EU face challenges with overcapacity in the steel market. Further discussions are planned to address remaining concerns and establish a defense mechanism against subsidized steel and global overcapacities.
Additional sources: AP, AFP
