U.S., Mexico to develop co-ordinated trade policies on critical minerals

FILE: Ore is hauled from the Kennecott's Bingham Canyon Copper Mine in Herriman, Utah. (AP Photo/Rick Bowmer)

WASHINGTON — The United States and Mexico on Wednesday unveiled a 60-day plan to develop co-ordinated trade policies aimed at mitigating vulnerabilities in critical mineral supply chains, including possible price floors for certain mineral imports.

The plan, which includes no specific mention of China and its chokehold on processing of many such minerals, calls for the two nations to consult on including price floors in a binding plurilateral agreement on trade in critical minerals.

Separately, Vice President JD Vance on Wednesday unveiled plans to marshal allies into a preferential trade bloc for critical minerals as Washington escalates efforts to shore up supply chains essential to advanced manufacturing.

U.S. Trade Representative Jamieson Greer said the U.S.-Mexico plan underscored the countries’ shared commitment to address global market distortions that have left North American supply chains vulnerable to disruptions.

“Correcting these vulnerabilities is imperative, as critical minerals are strategic assets integral to modern and innovative industrial economies, and diverse, resilient, and market-based supply chains are essential for our economic and national security,” the plan said.

It comes months before a mandatory review of the U.S.-Mexico-Canada trade agreement, or USCMA. There was no mention of Canada in the USTR news release or the joint action plan.

USTR said the agreement with Mexico was the first of its kind, but said it was working to develop co-ordinated trade policies for critical minerals and binding plurilateral agreements with other like-minded trading partners.

The U.S. and Mexico agreed to identify specific mining, processing and manufacturing projects for critical minerals in both countries and certain third countries, but gave no details.

The plan says U.S. and Mexican officials will consult on price floors and how they could be incorporated into a binding plurilateral agreement on trade in critical minerals, and other provisions that might be necessary.

Those could include trade measures, regulatory standards for mining and processing, technical and regulatory cooperation, investment promotion and screening, and geological mapping coordination.

Other possible tools could include co-ordinated responses to prevent disruptions in supply chains and research and development of new technologies and coordinated stockpiling, the plan said.

(Reporting by Andrea Shalal, editing by David Ljunggren)