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27
Canada helms launch of G7 ‘alliance’ countering China’s critical mineral dominance despite U.S.-China deal (www.brecorder.com)
submitted 6 days ago by Scotty@scribe.disroot.org to c/europe@feddit.org
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cross-posted from: https://scribe.disroot.org/post/5377829

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The two-day Group of Seven meeting in Toronto opened hours after US President Donald Trump and Chinese counterpart Xi Jinping signed an extendable one-year deal on China’s supply of rare earths.

Germany’s Minister for Economic Affairs and Energy, Katherina Reiche, told reporters the Trump-Xi deal marked “a good sign,” noting German reliance on Chinese critical mineral exports. But she stressed the agreement “can’t prevent us” from moving forward on broadening supply chains for the materials used in everything from solar panels and mobile phones to precision missiles. “We need diversification of our import routes on raw materials,” Reiche said.

With concern growing about China’s overwhelming dominance in rare earth refining and processing, G7 leaders announced a “Critical Minerals Action Plan” at a summit in western Canada in June.

Canada’s Energy Minister Tim Hodgson said the Toronto meeting will aim to formally launch a new initiative designed to curb China’s market influence. The Critical Minerals Production Alliance will “secure transparent, democratic, and sustainable critical mineral supply chains across the G7,” he said. Under the alliance, the governments of Britain, Canada, France, Germany, Italy, Japan, and the United States would mobilize private investment to expand critical mineral production that bypasses China.

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[–] tal@lemmy.today 2 points 6 days ago* (last edited 6 days ago) (1 children)

Canada’s Energy Minister Tim Hodgson said the Toronto meeting will aim to formally launch a new initiative designed to curb China’s market influence. The Critical Minerals Production Alliance will “secure transparent, democratic, and sustainable critical mineral supply chains across the G7,” he said. Under the alliance, the governments of Britain, Canada, France, Germany, Italy, Japan, and the United States would mobilize private investment to expand critical mineral production that bypasses China.

I'm going to guess that Canada has a bunch of said reserves and would be happy to sell them, particularly if the US is decoupling supply chains from China and the EU from Russia.

kagis

https://www.canada.ca/en/natural-resources-canada/news/2024/12/canada-to-unlock-critical-minerals-rare-earth-development-in-northern-quebec-and-labrador-with-new-funding.html

Canada to Unlock Critical Minerals Rare Earth Development in Northern Quebec and Labrador With New Funding

Investments in critical minerals infrastructure are essential for Canada to seize the enormous economic opportunity presented by the low-carbon economy and to capitalize on our rich mineral resources. Canada is well positioned to be a global leader and a first-class producer of a wide variety of critical minerals that are essential for powering the clean economy, strengthening national defense capabilities and ensuring national and economic security. By developing and expanding critical mineral value chains — from mining and processing to manufacturing and recycling — Canada can create good jobs, support economic opportunities and contribute to a resilient and secure future.

https://www.canada.ca/en/campaign/critical-minerals-in-canada/critical-minerals-an-opportunity-for-canada.html

Canada’s critical minerals

What makes them critical

To be considered a critical mineral in Canada, a mineral must meet both of the following criteria:

  • the supply chain is threatened

  • there is a reasonable chance of the mineral being produced by Canada

It must also meet one of the following criteria:

  • be essential to Canada’s economic or national security

  • be required for the national transition to a sustainable low-carbon and digital economy

  • position Canada as a sustainable and strategic partner within global supply chains

Yeah.

[–] tal@lemmy.today 4 points 6 days ago (1 children)

Actually, if I were Canada, I'd probably want to be selling lumber into the EU too, which would make their life a lot easier regarding the US.

The EU has gotten a lot of lumber from Russia.

Canada has had long-standing trade disputes with the US over lumber, where the US lumber industry has pushed for protectionist policy. Like, decades and decades.

https://en.wikipedia.org/wiki/Canada%E2%80%93United_States_softwood_lumber_dispute

The Canada–U.S. Softwood Lumber Dispute is one of the largest and most enduring trade disputes between both nations.[1] This conflict arose in 1982 and its effects are seen till today. British Columbia, the major Canadian exporter of softwood lumber to the United States, was most affected, reporting losses of 9,494 direct and indirect jobs between 2004 and 2009.[2]

If Canada had two very large markets, that'd probably make their life easier. And the EU does not have a lot of lumber, which is why masonry construction is more common than in the US and Canada in most of Europe.

kagis

https://www.theglobeandmail.com/business/article-lumber-industry-softwood-crisis-summit-bc-ottawa-sawmills/

American import taxes on softwood from Canada now total 45.16 per cent for most Canadian producers.

The U.S. Department of Commerce raised duty rates in the summer. Lumber supplies from Canada currently face an anti-dumping duty rate of 14.63 per cent and a countervailing duty rate of 20.53 per cent, equalling 35.16 per cent for most Canadian producers. That’s up sharply from duties totalling 14.4 per cent previously.

New 10-per-cent tariffs on shipments of softwood lumber from Canada and other countries took effect on Oct. 14. U.S. President Donald Trump announced the new levies in late September, citing Section 232 of the Trade Expansion Act, which allows him to impose tariffs on the basis of national-security concerns.

“This situation is the direct result of the protectionist economic policies advanced by President Donald Trump,” Mr. Parmar said.

https://globalnews.ca/news/11477871/bc-softwood-lumber-tariffs-us-higher-russia/

B.C.’s softwood lumber U.S. tariffs now higher than Russia’s: ‘Let that sink in’

https://forestmachinemagazine.com/russian-conflict-timber/

Due to take effect from the end of December 2025, the EUDR is the EU’s most meaningful effort yet to end its complicity in skyrocketing levels of forest destruction and affiliated human rights abuses. It does this by regulating the trade in timber, palm oil, soy, beef and other products driving that destruction. The law would also greatly aid efforts to stem the EU’s imports of conflict plywood from Russia and Belarus.

[–] Thedogdrinkscoffee@lemmy.ca 1 points 6 days ago

Yes, but shipping costs are what has prevented this from hapening.