Let’s Get Critical: Critical Minerals Mini Deals as Evolving Models of Trade Cooperation

Abstract

Critical minerals are at the centre of divergent state interests defined by developmental objectives, security objectives, energy transition, and sustainability imperatives. Unlike non-critical commodities, they exhibit heightened strategic importance but suffer from significant concentration of supply chains, notably in China. As securitization of trade reshapes global supply chains, governments are looking beyond traditional experiences with international commodity agreements, towards modernized tools of trade and investment cooperation to secure reliable critical mineral supplies. This article offers descriptive and analytical insights into the consequent non-binding international instruments on critical minerals, concluded by the most active participants in this topic: the United States, the EU, Japan, Canada, and Australia, who are amongst the largest demanders and suppliers of these minerals and are all economically developed. It finds that such instruments bear several potential systemic and institutional implications for rulemaking and governance in international trade, which include their ability to divert agency away from the resource rich, the concentration of norm creation and standard creation amongst a few, the phenomenon of ‘selective de-legalization’, and lack of transparency. By highlighting several trends and sources of potential concerns for commodity-dependent countries, this article urges a reassessment of this emerging framework advocating for the need to better balance state interests.