The Trump administration has accelerated a deep-sea mining initiative aimed at countering China's dominance in critical minerals essential for batteries and green technology. This fast-tracked plan bypasses international regulations, raising global condemnation and legal concerns. Concurrently, the U.S. and Indonesia have agreed on a trade framework that includes Indonesia supplying critical minerals to the United States. Under this agreement, Indonesia will remove export restrictions on industrial commodities, including critical minerals, and adopt several U.S. standards such as federal motor safety regulations and FDA certifications for medical devices and pharmaceuticals. Indonesia will also eliminate pre-shipment inspection requirements on U.S. farm products, abandon plans to impose internet tariffs, and support the renewal of the WTO e-commerce moratorium. The Trump administration anticipates that these trade barrier reductions will open at least $50 billion in additional market access for U.S. goods. The framework also addresses trans-shipment rules, with trans-shipped goods remaining subject to a 40% tariff, and exempts U.S. companies from local content requirements. Further negotiations are planned to formalize the U.S.-Indonesia Agreement on Reciprocal Trade.
As part of the framework to negotiate a trade agreement: ‘Indonesia will remove restrictions on exports to the United States of industrial commodities, including critical minerals.’
The U.S. and Indonesia have agreed to a framework for further negotiations on a trade deal. The countries plan to continue talks in the coming weeks to formalize the U.S.-Indonesia Agreement on Reciprocal Trade. https://t.co/2OGLpP36bA
USTR Greer says about Indonesia framework: “American producers, who have long-faced high tariffs and burdensome requirements, will receive unprecedented access to Indonesia’s market and greater certainty for the digital services sector.” (Pic from USTR) https://t.co/CtMAvhdwjX