Anand in DC as Trump administration makes the case for critical mineral trade zone

Foreign Affairs Minister Anita Anand was in Washington on Wednesday as the Trump administration made a case for international partners to join a preferential trade zone for critical minerals with forced price floors.

Vice-President JD Vance told a room filled with foreign ministers and officials at the U.S. State Department the goal was "diversifying global supply in the critical minerals market while strengthening the partner countries who help all of us in the shared effort."

"We are all on the same team," Vance said.

Ending China's stranglehold on rare earth minerals became a key U.S. priority last year after U.S. President Donald Trump escalated his trade war between the world's two largest economies by imposing massive tariffs. Beijing responded with retaliatory duties and export restrictions on various critical mineral exports to the U.S., causing anxiety throughout supply chains.

Vance said the United States will establish reference prices for critical materials at each stage of production that reflect "real world fair market value."

"And for members of the preferential zone, these reference prices will operate as a floor maintained through adjustable tariffs to uphold pricing integrity," he said.

Countries that join would get a foundation for private financing, Vance said, and would secure access to "the critical mineral supplies your nation would require in an emergency or some other contingency."

U.S. Secretary of State Marco Rubio told foreign officials "everyone here has a role to play," whether it's mining or refining. He said an international effort would be essential for success.

That push comes, however, as the Trump administration continues to undermine multilateral institutions and rattle traditional allies with tariffs and threats of annexation.

Trump's obsession with acquiring Greenland infuriated European countries and put into question the future of NATO.

The Trump administration already has signed critical mineral agreements with several countries, including Australia and Japan.

The international gathering is taking place after Trump announced Monday the launch of "Project Vault," a strategic reserve for rare earth elements.

While the United States does have reserves for defence purposes, the Trump administration said the new reserve would help shield makers of autos, electronics and other goods from supply chain disruptions.

The reserve is to be funded initially by a $10 billion loan from the U.S. Export-Import Bank and nearly $1.67 billion in private capital.

It's not clear what the Trump administration would want from Canada in any critical mineral agreement.

Canadian officials have made collaboration on rare earths a talking point with their counterparts in Washington as they lay the groundwork for a mandatory review of the Canada-U.S.-Mexico agreement on trade later this year.

Canada and the U.S. Department of Defense already have a co-investment deal to accelerate Canadian mining development and strengthen critical minerals supply chains.

Picture Courtesy: THE CANADIAN PRESS/Nick Iwanyshyn