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Begin New Search Topic Critical Minerals Political Geography Asia

1. Korea’s Strategy for Critical Minerals: Navigating New Trade Rules and Global Challenges

Author:
Cheon-Kee Lee
Publication Date:
04-2025
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Since the establishment of the GATT in 1947 and the WTO multilateral trading system in 1995, trade liberalization has led to an increase in global trade and the internationalization of production through global supply chains. In recent years, however, as non-trade values including national security, labor rights, and environmental protection have become important considerations, supply chains have become an end in themselves rather than a means of pursuing efficiency. Additionally, major trading partners such as the U.S, the EU, and China have sought to regulate global supply chain by leveraging market access to their domestic markets or critical minerals. The proliferation of such unilateral measures has posed significant challenges, as traditional WTO/FTA trade rules have failed to effectively address these new regulatory dynamics. The increasing compliance costs for companies, stemming from emerging supply chain regulations, are exacerbated by the legal constraints and loopholes in existing international trade frameworks, despite previously promised market access in multilateral and bilateral agreements. Against this backdrop, this Brief reviews the current state of disciplines in bilateral and multilateral trade rules and disciplines, with a particular focus on unilateral supply chain regulations. It will explore the critical minerals sector in light of recent sector-specific agreements and arrangements, including the IPEF Supply Chain Agreement, the U.S.-Japan Critical Minerals Agreement or “CMA”, and the EU's Strategic Partnership. While many supply chain issues are emerging in relation to various non-trade values, the critical minerals sector has been the first to see the emergence of more flexible and pragmatic sector-specific agreements and MoUs that depart from the traditional FTA model. This is likely due to the fact that the security of mineral resources is crucial to the competitiveness of domestic industries in many countries. Moreover, the recent trend of resource-owning countries requiring foreign and foreign-owned mining companies to uphold environmental and labor rights during the mineral extraction process has led to the emergence of new ESG (Environmental, Social, and Governance) obligations. The ability to address these elements in a stand-alone agreements or MoUs specific to critical minerals—rather than within the framework of a traditional FTA—marks a key strength of this approach. The evolution of these agreements, especially in the critical minerals sector, is of particular relevance to Korea. As the country faces increasing reliance on the global supply of critical minerals and is deeply impacted by evolving international regulations, it is crucial for Korea to explore its own strategy for securing access to these resources. This Brief will focus on the development of Korea's critical mineral strategy, while drawing the lessons from international agreements.
Topic:
Economics, World Trade Organization, Multilateralism, Trade, and Critical Minerals
Political Geography:
Asia and South Korea

2. Material world: How Europe can compete with China in the race for Africa’s critical minerals

Author:
Sarah Logan
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
In the last two decades, China has come to dominate global supply chains for critical raw materials and the green energy and other technologies they enable. This increases competition and economic risks for Europe. In an effort to build CRM supply chains insulated from China, the EU has signed strategic partnerships with several politically friendly countries around the world, including in Africa. However, the EU will only realise its de-risking ambitions if the European private sector invests in CRM supply chains in partner countries in Africa and elsewhere. Yet the incentives for European companies to enter mining and processing operations in these markets are too weak. The example of Namibia shows that the EU’s strategic partnership with the country has borne little fruit – and may even be benefitting Chinese firms at European expense. To address this, the EU must enhance support to European companies to invest in securing access to critical raw materials. This should include new financial incentives and measures to protect against China manipulating prices on international markets.
Topic:
Foreign Policy, European Union, Strategic Competition, Supply Chains, Strategic Partnerships, and Critical Minerals
Political Geography:
Africa, China, Europe, Asia, and Namibia

3. Korea’s Trade Policy Agenda in an Uncertain US Trade Environment

Author:
Alan Wm. Wolff and Han-Koo Yeo
Publication Date:
07-2024
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
This paper addresses how South Korea, a mid-sized ally of the United States, can best navigate clearly identifiable risks, crafting a positive and pragmatic international trade policy. Korea is heavily dependent on the United States for its defense. It is clear that US trade policy has recently shifted toward being more self-centered, a policy unlikely to be reversed any time soon. The United States is on the threshold of a presidential election that makes it unpredictable in its trade policy, which may become directly harmful to Korean economic prospects if there is a change in leadership. US trade policies under President Joseph Biden have been primarily aimed at onshoring rather than friendshoring, but they have not been actively hostile or threatening. If there is a second Donald Trump term, Korea might not be excluded from substantially increased tariffs—whether for protection, revenue, or leverage—despite the Korea-United States Free Trade Agreement (KORUS FTA). At the same time that Korea is watchful of developments in the United States, it needs to pay attention to its neighbor, China, the world’s largest trading economy, a country that has practiced trade coercion against it. South Korea is the world’s 13th-largest economy. It is a strong proponent and practitioner of free trade. It is one of a group of midsize free market democracies aligned with the United States that, ranked by GDP, includes Japan, Germany, and France (and therefore with others, the European Union), the United Kingdom, Canada, Italy, and Australia. The future of the global trading system that the market-oriented countries wish to enjoy is increasingly dependent on this group of midsize economies and the European Union. Korea has thrived in large part through its open trade policy that has made it the country with the world’s greatest number of free trade agreements (including with both the United States and China, as well as with the European Union). It shares strong economic security interests with the United States: It has its own K-CHIPS Act, which provides substantial subsidies to its semiconductor industry. It invests very substantially in critical minerals and batteries, as does the United States. Korea also collaborates with the United States in the production of vaccines to meet future pandemics.
Topic:
Climate Change, Bilateral Relations, Geopolitics, Investment, Trade, Economic Security, Semiconductors, Steel, and Critical Minerals
Political Geography:
Asia and South Korea