International Trade and Investment Agreements and Sustainable Critical Minerals Supply
Trade and investment agreements can play a crucial role in defining the relationship between predominantly mineral-exporting and mineral-importing countries—getting them right is essential to creating resilient and responsible supply chains.
Key Messages
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Critical minerals are becoming important to trade and investment policies for exporting and importing countries. This will likely continue as more nations work toward decarbonizing their economies and diversifying supply chains, and attention to the geopolitics of critical minerals grows.
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New free trade agreements, international investment agreements, and Memoranda of Understanding (MOUs) are starting to incorporate environmental, social, and governance (ESG) provisions, signaling a shift from old-generation treaties.
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Exporting or producing countries can leverage critical minerals in negotiations to secure concessions and align policies with goals. Reforming investment treaties and embedding ESG standards are key for sustainable resource governance and economic growth.
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Effective MOU implementation can help balance investor protections with sustainable and equitable access to critical minerals. While MOUs appear to be a step in the right direction of balancing importer and exporter interests, they need practical implementation plans.
This report seeks to assess the current state of play by examining the body of trade and investment agreements and asking: To what extent do current and emerging trade and investment agreements reflect a changing balance between the interests of exporting and consuming countries in the supply chains of critical minerals, including economic development and environmental and social objectives? And what are short-term priorities for improving practice?
Our analysis is based on a review of more than 100 trade and investment agreements and MOUs, including a focus on the agreements signed by governments of three case study states: Indonesia, Chile, and the Democratic Republic of the Congo. To complement this review, we conducted interviews with experts, policy-makers, and industry officials. The analysis examined the extent to which these agreements align with three key objectives:
- supporting the economic development of mineral-rich countries,
- securing a stable supply of raw materials for importing nations, and
- enhancing the environmental and social outcomes of mining activities.
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