EU Considers Tough Stance on Raw Materials

A draft European Commission strategy document states that the European Union will consider stockpiling raw materials and will confront any country that restricts supplies. According to the draft paper, “[T]he EU will continue to pursue barriers hampering the sustainable supply of raw materials to the EU economy….The Commission will suspend – totally or partially – from the General System of Preferences (GSP) countries that apply unjustified restrictions to raw materials.” The GSP countries are those on the EU’s list of preferred trading partners. Traidcraft, a fair trade organization, countered that the policy threatens the development of minerals that African countries need to pull themselves out of poverty. Liz May of Traidcraft said “[I]n its bid to get access to cheap raw materials, the EU is threatening to undermine the very basis for countries’ future development. It is critical that developing countries are able to use all necessary policy tools to add value to their raw materials.” The draft is likely to change in the weeks ahead, but it gives insight into the Commission’s plans for metals and minerals, and makes it clear that rare earths are its main focus, as the looming shortage of these materials could hamper Europe’s progress in strategic technologies such as electric cars and military surveillance.