EC Vice President Valdis Dombrovskis revealed that the recent negotiations between the US and the EU regarding critical raw materials have faltered due to the US introducing additional demands beyond the framework of an agreement signed between Japan and Washington earlier this year.
Dombrovskis, speaking to reporters in Osaka, suggested that an agreement with the US could be reached if it were modeled after the pact between Japan and the US inked in March. He highlighted that the issue lay in the fact that “the U.S. is making more extensive requests of the EU compared to Japan,” as he noted during discussions with Trade Ministers of the Group of Seven.
One of the two agreements that were not reached ahead of the US-EU summit last week pertained to critical minerals. The significance of securing reliable access to these crucial resources has grown rapidly, particularly in light of China’s recent restrictions on exports of gallium, germanium, and graphite, all of which are essential components in high-tech products such as semiconductors and batteries.
Dombrovskis conveyed that the EU will continue to closely monitor Chinese export controls and engage in discussions with the Japanese on the matter. He also mentioned that the EU’s proposal for a ‘club for crucial minerals’ was a topic of discussion. This club aims to guarantee sustainable access to vital minerals.
In addition to his involvement in the G7 meeting, Dombrovskis is leading the EU delegation in a final effort to secure a free trade agreement with Australia. He expressed optimism, stating, “I would say the deal is within reach, but we still need to overcome the remaining obstacles, and this week we aim to demonstrate that we can do so. For the EU, substance is prioritized over speed.”
About the author: Wesley C Waldo
Wesley C Waldo, a promising writer who is preparing to publish his first novel in 2023. Travels a lot and collects the clues for a new book. He writes on social topics, sometimes describes an event or two.